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Home care, also known as domiciliary care, is often a preferred option to residential care. It gives people the opportunity to continue living in the comfort of their own homes whilst receiving the care and support they require; but it does come at a cost. Local authority funding offers financial support to ensure home care is accessible for everybody, no matter their budget.
Here, we’ve compiled a guide to take you through every aspect of local authority funding and how it works in relation to home care services.
Assessments
Before home care can be provided, you’ll need to undergo two different assessments.
These assessments will determine:
- The type of care you need, now and in the future.
- The amount of money you’ll need to pay for your care.
Both of these assessments are free of charge and will be carried out by your local council, or local trust if you live in Northern Ireland.
Needs assessment
A needs assessment will seek to determine the type and level of care you need on a day-to-day basis.
The assessment will be carried out by a care professional, such as a nurse, social worker or occupational therapist and they will ask you a number of questions to find out more about your daily life; the things you find difficult as well as the aspects of your life you’re content with.
What kind of questions will be asked during a needs assessment?
Questions asked will usually be related to:
- Your living situation
- Your health
- Your wellbeing
- Your lifestyle
- How you manage daily life.
You can find out more information about needs assessments in our article here.
Financial assessment
A financial assessment will work out whether you’ll pay for, or contribute towards the cost of, your care.
The assessment, also known as a means test, will look at your income, savings and any assets you have. The assessment will not take into account the value of your property, as you’ll continue to live there.
How much you’ll be expected to pay will be determined by the capital limits in place in the country you live in.
Capital limits for home care
Across the UK, each country has thresholds, also known as capital limits, which determine how much you’ll pay towards your care based on the amount of money you have; the general rule is that the more money you have, the more you will pay.
In England, Scotland and Northern Ireland, there are lower and higher capital limits. In Wales, there is only a higher limit.
What does this mean?
- If you have capital (income, savings, assets) worth more than the higher limit, then you’ll need to pay for your own care (this is known as self-funding)
- If your capital is less than the lower limit, you will be eligible for complete funding from your local council (state-funding)
- If your capital sits somewhere in between, then you’ll be eligible for partial funding and will be required to contribute towards your care.
What are the capital limits for home care in each country?
| England | Scotland | Wales | Northern Ireland | |
| Higher limit | £23,250 | £32,750 | £50,000 | £23,250 |
| Lower limit | £14,250 | £20,250 | £14,250 |
The 2025 care cap
Back in 2021, the government announced a considerable overhaul to care funding in England. The proposed changes included a lifetime cap on the cost of care, meaning nobody living in England would pay more than £86,000 for personal care over their lifetime.
The Labour government ditched the proposed cap on care costs in July 2024.
Personal budgets and direct payments
If you’re eligible for support, you’ll be allocated a personal budget.
A personal budget is a specific amount of money that your local council agree to pay towards the cost of your social care needs. The amount will be determined based on your financial assessment as well as your needs assessment.
What can a personal budget be used for?
- Carers or personal assistants
- Home adaptations
- Equipment to help with daily life, such as a wheelchair or other mobility aids
- Transportation
- Respite care
- Community services
- Day care services
Is a personal budget the same as a personal health budget?
No. A personal health budget is funded through the NHS to cover the cost of healthcare and support provided by the NHS, whereas a personal budget is funded through your local council for your social care needs. You can receive both at the same time if you’re eligible.
Managing a personal budget
If you’re allocated a personal budget, there are a few different ways to manage this money.
- Have the money paid directly to you for you to then spend on meeting your care needs.
- Have the money paid to somebody you trust, such as a family member or close friend, who will then spend the money on meeting your care needs.
- Have the money managed by a third party, such as a service provider.
- Have the local council arrange the care and support you need and make the payments for you.
For each of the above options, the money needs to be spent on legitimate ways to meet your care needs, according to the care plan that would have been put together for you. Whichever option you choose, your local council will work with you to ensure that the budget is being spent effectively.
What are direct payments?
If you choose for your personal budget to be paid to yourself or someone close to you, this is known as a direct payment.
In both of these cases, you’ll need to keep receipts or other evidence of how the money is being spent, which the council will then verify to make sure the money is being spent appropriately.
You can also choose to split the money, with part of the budget being provided as a direct payment and part being managed by the council.
Home adaptations
Home adaptations are intended to make everyday life easier for you, making it possible for you to continue living in your home safely, and complement any home care services you’ll be receiving.
Home adaptations can include anything from minor changes, such as installing a handle in the shower or by your front door, to more significant changes, for example, widening doorways or lowering kitchen countertops.
To determine if you’d benefit from home adaptations, your local council will arrange an assessment. This assessment is free of charge.
How does a home assessment work?
The assessment will be carried out by an occupational therapist who will look around your home and ask you questions about how you manage day-to-day. It should take about an hour. You should be as honest as you can to ensure the person carrying out the assessment gets an accurate picture of how your daily life is. It could be a good idea to have a family member or friend with you during the appointment for support.
Paying for home adaptations
Home adaptations can be expensive and you may want to do more than your personal budget will cover. To find out more about funding home adaptations, read out article here.
Where to start looking for home care
If you’re ready to start looking for a home care agency, homecare.co.uk is the perfect place to start. On the website, you can search in your local area and filter results by a range of different categories to suit your needs. Visit the website to start your search.
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