Self-funding home care: what to know before you start

Self-funding care means paying for home care yourself rather than the council paying. In England you’re usually a self-funder if your savings and other capital are over £23,250 (2026/27), or if you choose to arrange care privately. As a self funder of home care you have more choice, but you should still get a free council needs assessment, claim non-means-tested benefits, and plan for when savings fall.

At a glance

• Capital over £23,250 usually means you pay the full cost. The home you live in is not counted for care at home (DHSC, 2026/27).
• As of 2026, agencies in England charge about £32–£34 an hour; live-in care about £1,540–£1,610 a week. Prices vary by region; get a written quote.
• Attendance Allowance (£76.70 or £114.60 a week) is paid whatever your savings.
• Care from a CQC-registered provider is exempt from VAT.
• Self-funders can complain to the Local Government and Social Care Ombudsman about registered providers.

Who counts as a self-funder?

You’re a self-funder if you pay the full cost of your own care. This usually happens because:

• the council’s financial assessment finds your capital is over the upper capital limit of £23,250, or your income is high enough to cover the full cost; or
• you choose to arrange care privately without involving the council.

For care at home, the value of your own home is always disregarded in the means test. So many older homeowners with modest savings are not self-funders for home care, even though they would be for a care home. See the home care means test.

Should self-funders still ask for a needs assessment?

Yes. Your council must assess anyone who appears to need care and support, whatever their finances (Care Act 2014, s9). An assessment:

• gives you an independent view of needs to share with providers;
• records eligible needs, which speeds up council help later;
• lets you ask the council to arrange care for you. It must agree if you have eligible needs, but can charge the full cost plus an arrangement fee limited to its actual costs (Age UK Factsheet 46, May 2026).

Contact the adult social care team at your parent’s local council.

How much will self-funded home care cost?

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. The Homecare Association’s minimum sustainable price for homecare in England is £34.42 an hour for 2026/27, and self-funders are often quoted more than councils pay. Try our home care cost calculator, or see how much home care costs in London.

What should self-funders check before choosing a provider?

CQC registration and rating

Any provider giving personal care, including prompting with washing, dressing or medicines, must be registered with CQC. Check the rating on the CQC website.

Managed agency or introductory agency?

A managed agency employs and supervises carers and is responsible for the care. An introductory agency introduces self-employed carers and may not need CQC registration if it has no ongoing role. Introductory rates can be lower, but you take on more responsibility. See managed vs introductory care agencies.

VAT

Care from a CQC-registered provider is exempt from VAT (HMRC VAT Notice 701/2). Introductory or placement fees are standard-rated.

The contract

Read it carefully before signing. Check:

• hourly, weekend and bank-holiday rates, and minimum visit lengths;
• how and when prices can rise;
• notice periods on both sides;
• cancellation charges for missed or cancelled visits;
• what happens if your parent goes into hospital.

Our guide to home care contracts has a full checklist.

Which benefits can self-funders claim?

Several benefits ignore savings entirely:

• Attendance Allowance: £76.70 (lower) or £114.60 (higher) a week in 2026/27, for people over State Pension age who need help. Not means-tested or taxable. See using Attendance Allowance to pay for home care.
• PIP: daily living £76.70 or £114.60 a week; mobility £30.30 or £80.00, for people under State Pension age at claim.
• Carer’s Allowance: £86.45 a week for a family carer providing 35 hours or more who earns no more than £204 a week.
• Council Tax: a person with a severe mental impairment, such as advanced dementia, can be disregarded; a live-in carer may also be disregarded. Apply to your local council.

Also check NHS Continuing Healthcare if needs are mainly health-related. It’s free and not means-tested.

What happens when savings run low?

This is the most important thing to plan for. When your capital falls towards £23,250, contact the council for a needs and financial assessment. Don’t wait until money runs out.

• Between £14,250 and £23,250, the council contributes, and you pay from income plus tariff income of £1 a week for every £250 over £14,250.
• The council will usually pay at its own rates, which are often well below private rates and the Homecare Association’s £34.42 minimum. London councils, for example, paid an average of about £21.87 an hour in 2025/26 (Homecare Association). Ask your current provider whether it will accept the council rate, or whether a top-up or change of provider would be needed.
• Keep records of spending. If the council thinks money was given away to avoid charges, it can treat you as still having it (deprivation of assets).

How can self-funders protect themselves?

• Lasting Powers of Attorney: put both types in place while your parent has capacity. Registration costs £92 per LPA (Office of the Public Guardian).
• Independent financial advice: for large sums, an adviser specialising in later-life finance can explain options such as immediate needs annuities and equity release.
• Complaints: complain to the provider first. If unresolved, the Local Government and Social Care Ombudsman can investigate complaints from self-funders about registered care providers.

For every funding route, see our pillar guide to paying for home care.

Frequently asked questions

What is a self-funder in care?

A self-funder is someone who pays the full cost of their own care. In England this usually applies when capital is over £23,250 in 2026/27, or when someone chooses to arrange care privately. For home care, the value of the home you live in isn’t counted in the council’s means test.

Do self-funders get any help from the council?

Yes. Self-funders are entitled to a free needs assessment, information and advice. If you have eligible needs, you can ask the council to arrange your care; it must agree, but can charge the full cost plus an arrangement fee. Carers can also get a carer’s assessment.

Does a self-funder pay more for home care?

Often. Private clients are usually charged the provider’s standard rates, which as of 2026 are about £32–£34 an hour in England, varying by region. Councils negotiate lower rates, often below the Homecare Association’s minimum sustainable price of £34.42 an hour. Always get a written quote and compare providers.

What happens when a self-funder’s money runs out?

Contact the council before your capital falls below £23,250. It will assess needs and finances and may start contributing. It may pay only its standard rate, so ask your provider whether it will accept that. Planning ahead avoids a gap in care.

Can self-funders complain to the Ombudsman?

Yes. The Local Government and Social Care Ombudsman can investigate complaints from people who arranged and paid for their own care with a registered provider. You normally need to complain to the provider first and give it a reasonable chance to respond.

Sources

• DHSC social care charging circular 2026 to 2027 (GOV.UK)
• Age UK Factsheet 46: Paying for care and support at home, May 2026
• DWP benefit and pension rates 2026 to 2027 (GOV.UK)
• HMRC VAT Notice 701/2 (GOV.UK)
• CQC: introductory agencies and individual care workers
• Homecare Association research and reports
• Homecare Association response to the Low Pay Commission, 2026
• Which?: paying for care at home
• LGSCO: adult social care FAQs
• GOV.UK: register a lasting power of attorney

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

Reviewed by The Care Panel team on 15 October 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.