How to pay for home care in England (2026)

There are four main ways to pay for home care in England: council funding after a needs and means test, NHS funding if needs are mainly health-related, disability benefits such as Attendance Allowance, and your own income and savings. Most families use a mix. The first step is almost always to ask your local council’s adult social care team for a free Care Act needs assessment, even if you expect to pay yourself.

This guide covers the rules across England. Read it for your council area, with your council's contact details, published care rates and local figures.

Local guide: Funding home care in West Sussex.

At a glance

• Council help depends on a needs assessment and a means test. In England, if your capital is over £23,250 you usually pay in full; below £14,250 it is ignored (DHSC, 2026/27).
• For home care, the value of the home you live in is always disregarded in the council means test.
• NHS Continuing Healthcare pays the full cost of care, at home too, for people with a “primary health need”. It is not means-tested.
• Attendance Allowance pays £76.70 or £114.60 a week (2026/27), is not means-tested and can be spent on care.
• As of 2026, agencies in England charge about £32–£34 an hour and live-in care costs about £1,540–£1,610 a week. Prices vary by region; get a written quote.

How much will home care cost?

Before thinking about funding, get a realistic figure. As of 2026, typical private prices in England are:

Prices vary by region and depend on care needs and provider. The Lottie Care Index for Q3 2026 puts the median hourly rate at £33.49, and the Homecare Association’s minimum sustainable price for homecare in England is £34.42 an hour for 2026/27. Try our home care cost calculator, or see how much home care costs in London.

Step 1: Ask the council for a needs assessment

Under section 9 of the Care Act 2014, your council must assess anyone who appears to need care and support. It doesn’t matter how much money they have. Contact the adult social care team at the council where your parent lives. That is the county council, unitary council, metropolitan borough or London borough, not a district council.

You’re eligible for council support if all three of these apply:

1. Your needs arise from a physical or mental impairment or illness.
2. Because of those needs, you cannot achieve two or more specified outcomes, such as managing nutrition, maintaining personal hygiene, managing toilet needs, getting dressed or using the home safely.
3. As a result, there is likely to be a significant impact on your wellbeing.

“Cannot achieve” includes being able to do something only with help, or with significant pain, distress or risk, or taking much longer than normal. There is no fixed legal deadline for the assessment, but the council can arrange urgent care before it is finished.

A family carer can ask for their own carer’s assessment at the same time.

Why ask even if you’ll self-fund?

An assessment gives you a clear, independent view of needs, a care plan you can share with providers, and a route to council help later if savings fall. If your capital is over the upper limit, you can still ask the council to arrange your care, though it can charge the full cost plus an arrangement fee covering its actual costs (Age UK Factsheet 46, May 2026).

Step 2: The financial assessment (means test)

If you have eligible needs, the council checks what you can afford to pay. The 2026/27 limits in England are:

These limits have been frozen since 2010. The planned £86,000 care cost cap was scrapped in July 2024, and there is no replacement (House of Commons Library).

For care at home, the council must leave you a Minimum Income Guarantee of at least £241.45 a week for a single person over Pension Credit age in 2026/27, plus allowances for housing costs and disability-related expenditure. Our full guide to the home care means test explains every step.

What happens to the house?

For home care, the value of the home you live in is always disregarded (Care Act statutory guidance, Annex B). You won’t be asked to sell your home to pay for care at home. This is a key difference from care home funding.

Step 3: Check for NHS funding

Some care at home is paid for by the NHS, not the council, and is free to you.

NHS Continuing Healthcare (CHC)

CHC is a package of care arranged and fully funded by the NHS for adults whose needs are mainly health-related (a “primary health need”). It covers care at home as well as in care homes, and it is not means-tested. The process starts with a Checklist screening, followed by a full assessment using the Decision Support Tool. The Integrated Care Board (ICB) should usually decide within 28 days.

People who are rapidly deteriorating and may be entering a terminal phase can be assessed through the Fast Track pathway, with care usually in place within 48 hours. Each area of England has an ICB that handles CHC for people registered with its GPs. See NHS Continuing Healthcare at home.

Free reablement and intermediate care

After an illness, fall or hospital stay, councils must not charge for intermediate care, including reablement, for up to six weeks. Equipment and minor adaptations costing £1,000 or less are also free.

Mental Health Act aftercare

Aftercare under section 117 of the Mental Health Act is free and cannot be charged for (Age UK Factsheet 46).

Step 4: Claim every benefit you’re entitled to

Benefits can cover a surprising share of the bill. 2026/27 weekly rates (DWP):

Also check Council Tax discounts. Someone with a severe mental impairment, such as advanced dementia, can be “disregarded”, which can mean a 25% discount or no bill at all if they live alone. A live-in carer may also be disregarded. Apply to your local council.

Read more in using Attendance Allowance to pay for home care.

Step 5: Choose how council money is managed

If the council funds some or all of your care, it will work out a personal budget. You can let the council arrange care, or take the money as a direct payment and arrange it yourself. Direct payments let you choose your own agency or employ a personal assistant. Every council in England offers them under the same national rules.

Step 6: If you’re self-funding

If you pay in full, you arrange and contract directly with a provider. Tips:

• Get written quotes that show weekend, bank-holiday and short-visit rates.
• Check CQC registration. Personal care must come from a CQC-registered provider, and care from a registered provider is exempt from VAT (HMRC VAT Notice 701/2).
• Read the contract for notice periods and price-rise clauses.
• Keep an eye on capital. When savings fall towards £23,250, ask the council for a new financial assessment. Don’t wait until money runs out.
• Put a Lasting Power of Attorney in place so someone can manage finances if capacity is lost. Registration costs £92 per LPA (Office of the Public Guardian).

Our guide to self-funding care covers this in depth, and our main guide to paying for home care brings every option together.

Using property or a lump sum

Because the home is disregarded for home care, some self-funders consider releasing its value:

• Equity release (a lifetime mortgage or home reversion plan) can free cash while you stay at home. But released money counts as capital in the means test and may affect benefits.
• Immediate needs annuities turn a lump sum into a guaranteed income for life towards care. Payments made directly to a CQC-registered provider are free of income tax (HMRC).

Both are regulated financial products. Take advice from a regulated adviser who specialises in later-life finance before committing.

Paying for care: a quick checklist

1. Request a Care Act needs assessment from your local council.
2. Ask for a carer’s assessment for the main family carer.
3. Ask a GP, nurse or social worker whether a CHC Checklist should be completed.
4. Claim Attendance Allowance or PIP, and check Pension Credit.
5. Apply for Council Tax discounts or disregards.
6. Get written quotes from CQC-registered providers.
7. Set up Lasting Powers of Attorney.
8. Review funding every few months as needs and savings change.

Frequently asked questions

Does the council pay for home care?

It can. If your needs meet the Care Act eligibility test, the council must arrange support. How much you pay depends on a means test. In 2026/27, people with capital over £23,250 usually pay in full, while those under £14,250 pay from income only. Your home is disregarded for home care.

Will I have to sell my house to pay for home care?

No. For care in your own home, the value of the property you live in is always disregarded in the council’s financial assessment. Different rules apply if you move permanently into a care home, where the home can be counted after a 12-week disregard, unless a partner or certain relatives still live there.

Is home care free for over 65s?

Not automatically. Age alone doesn’t make care free. Council-arranged care is means-tested, although reablement is free for up to six weeks and NHS Continuing Healthcare is free for people with a primary health need. Attendance Allowance, which is not means-tested, can help anyone over State Pension age who needs care.

Can I pay a family member to care for me?

Sometimes. With a council direct payment, you normally can’t pay a spouse, partner or close relative who lives in the same household unless the council agrees it’s necessary. Relatives who live elsewhere can generally be employed as personal assistants. If you pay privately, you can pay anyone, but employer duties may apply.

What if my savings are about to run out?

Contact the council before your capital falls below £23,250. Ask for a needs assessment (if you haven’t had one) and a financial assessment, so council funding can start without a gap. Keep records of spending on care, as the council may ask how savings were used.

Who can give free advice on paying for care?

Age UK, Independent Age and your local council’s adult social care team give free information. For NHS Continuing Healthcare, Beacon offers free independent advice on 0345 548 0300 (NHS.uk). For financial products such as annuities or equity release, use an FCA-regulated adviser.

Sources

• DHSC social care charging circular 2026 to 2027 (GOV.UK)
• Care and support statutory guidance (GOV.UK)
• Care Act eligibility (SCIE)
• Age UK Factsheet 46: Paying for care and support at home, May 2026
• House of Commons Library: adult social care funding and the care cap
• NHS: NHS continuing healthcare
• National Framework for NHS CHC, July 2022 (revised)
• DWP benefit and pension rates 2026 to 2027 (GOV.UK)
• GOV.UK: Council Tax discounts for disabled people
• HMRC VAT Notice 701/2 (GOV.UK)
• HMRC IPTM6210: care annuities paid to care providers
• GOV.UK: register a lasting power of attorney
• Homecare Association research and reports
• Lottie: care at home costs

This guide is general information, not financial, legal or medical advice. Last reviewed September 2026.

This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.