How to pay for home care | 2025

If you’re looking for home care, whether for yourself or a loved one, one of the first things to think about is how you are going to pay for care at home.

Depending on where you live and how much money you have, you may be able to get financial help from your local authority. If you have a health condition or a disability, there is also a whole host of benefits you may be eligible for.

How much does home care cost per hour?

The price of home care also known as domiciliary care and in-home care does vary across the UK.

Home care in the UK costs on average between £23 to £34 per hour.

If you need home care two hours a day at a rate of £30 per hour, you will pay:

• £420 per week
• £1,680 per month
• £20,160 a year

This video provides a brief overview of how much you can expect to pay for home care and what funding is available that you may be eligible for.

Bear in mind that some care providers will charge a higher rate for weekends and bank holidays.

How much does live-in care cost?

Generally, live-in care fees start at around £900 to £1,400 per week. But it can be as much as £2,000 per week. The cost of 24-hour care at home will vary depending on your needs, what services you require and what provider you choose.

For live in carer costs, if you need 24-hour live-in care at a rate of £1,100 per week, this means you will pay:

• £4,730 per month (52 weeks per year divided by 12 months equals 4.3 weeks a month)
• £56,760 a year

When you receive a quote from a home care provider, calculate the estimated cost to find out if you can afford it and then budget accordingly.

Paying for home care in England

Your local council may contribute to the cost of your home care.

A needs assessment will first be carried out to determine the type of care you require.

The council will then work out how much you need to contribute to home care costs in a financial assessment. This is also known as a means test. How much you will pay depends on your salary and savings.

A Financial Assessment Officer will visit your home and look at earnings, pensions, benefits and savings. They don’t need to know how much your possessions are worth or the value of any life insurance policies.

Means test won’t look at value of your property

As you are not going into a care or nursing home, the means test also won’t consider the value of your property.

• If your capital is over £23,250, you will have to pay for the home care service in full.
• If you have between £14,250 and £23,250, the council will contribute some of the money required.
• If you have less than £14,250, your capital won’t be included in the test and the council will pay for your care. But they will take your eligible income into account.

If the means assessment determines that you’ll be required to cover the cost of care yourself, the council is required to provide information on how to get help in your area.

If you paid your home care fees yourself to start with but you realise you are running out of money, the council might help with funding. When you get close to the £23,250 threshold, contact your local council to request an assessment as soon as possible.

NHS Continuing Healthcare

NHS CHC is a care package for people living in England or Wales who are over 18. It is funded by the NHS and covers the costs of your support needs if you require substantial long-term care.

You can receive NHS CHC in your own home or if you are receiving residential care.

The total number of people in England eligible for CHC, as of 31 March 2024, was 52,096.

To be eligible, it must be proven you have a primary health need, which means your care needs are mainly for healthcare. There are two stages in the assessment process to determine if you qualify.

You will have to undergo an initial assessment and then a full assessment.

NHS CHC is not means-tested.

Paying for home care in Scotland

Everybody in Scotland can receive free personal and nursing care. But only if they have been assessed by their local authority as needing it.

This can include help with bathing and oral hygiene, continence management, food and diet, immobility problems, medication and getting in and out of bed.

Your council may require you to pay for any other care you need. Charges vary depending on where in Scotland you live. Some councils do not provide their own care but organise it through a care agency instead.

In terms of capital limits, guidelines from the Convention of Scottish Local Authorities (COSLA) recommends councils to disregard the first £10,000 of your savings if you are over State Pension age.

• If you have more than £10,000, a weekly tariff income of £1 for each £500 over £10,000 is assumed. This means that if you have £14,000, you will be assessed as having a £8 weekly tariff income.
• If you are below State Pension age, the first £6,000 will be disregarded and the tariff income will be £1 per £250.

Paying for home care in Wales

In Wales, all local authorities can only charge people receiving home care a maximum of £100 per week. This is regardless of how much money they have in savings and what services they receive.

• A capital limit of £24,000 is applied regarding people’s savings and assets. Your home will not be taken into account. Any capital or savings you have below £24,000 has to be fully disregarded as part of the means test.
• If you are in a couple, the financial assessment will only take into account your assets. However this does include capital that is shared between you and your partner, which is presumed to be shared equally until evidence proves otherwise.
• If you have less than £24,000 in savings or assets but have an income, this income will be taken into account when determining if you need to contribute to your care and how much.

Minimum level of income

Welsh Government guidelines specify that you must have a minimum level of income to live on. So you will pay however much the means test determines you can afford.

If the home care service you need costs the local authority £50 per week, you might only be charged £30 if that is what the means test deems you can afford.

• If your capital is over £24,000, the local authority can charge you the maximum amount for the services (up to £100 per week).

NHS Continuing Healthcare

NHS CHC is also available for people living in Wales who are over 18. It is not means tested and will cover the cost of ongoing significant care needs in someone’s home or in a care home.

There are two forms of CHC, standard and fast-track.

Fast-track is for people whose health condition is rapidly worsening. Many people on fast-track CHC are approaching the end of life.

CHC is arranged and funded by the NHS.

Paying for home care in Northern Ireland

In Northern Ireland, your local Health and Social Care Trust will assess your care needs to determine what help you are entitled to, whether it is help at home, home adaptations or financial assistance.

The amount of care or financial support you will get depends on the needs assessment.

Your local trust can employ a care worker to help you at home. They may offer you care services such as washing, dressing, cooking and managing finances. They can also advise you on home adaptations which you could receive payments for, such as handrails, and may provide a ‘meals at home’ service.

Additionally, you might be eligible for direct payments. You need to request direct payments yourself and the trust then decides if they agree.

Direct payments

If you receive care services, your local authority (or trust in Northern Ireland) will offer you the option of direct payments.

Direct payments are paid straight into your chosen bank account. This allows you to manage your care services (or other services you require to meet your assessed needs) yourself, rather than the local authority or trust doing this for you.

Direct payments are offered to:

• Disabled people aged 16 or over (with short or long-term needs)
• Disabled parents for children’s services
• Carers aged 16 or over (including people with parental responsibility for a disabled child)
• Elderly people who need community care services

Your local authority decides how much you get, determined by your needs assessment. You can use this money to pay for whatever health service or equipment you need. This for example, may entail employing a care worker, but it can’t be used to pay for everyday costs, such as utility bills or food.

The council (or trust) should still be involved in your care and check in with you regularly to ensure you receive the care you need.

Direct payments do not affect any other benefits you receive.

What benefits can I claim ?

Always check if you are entitled to any benefits and if you are, make sure to claim them. Even if you have a substantial amount of savings, you could be entitled to benefits as some are not means-tested.

Attendance Allowance

To be entitled to claim Attendance Allowance, you must have reached State Pension Age (over 65 depending on date of birth) and:

• Have a physical and/or mental disability, including learning difficulties.
• Require someone to care for you or have someone to supervise you because of your disability.
• Have needed that care for at least six months, unless you are terminally ill.

All people in the UK are entitled to this benefit

There are two rates available, determined by the level of support you require. However, it does not cover mobility needs. You may need to be assessed by a healthcare professional if it is unclear how your condition affects you.

• If you need frequent help or constant care either during the day or at night, you could receive £72.65 per week.
• If you need help both day and night, or if you suffer from a terminal illness, you could receive £108.55 per week.

If you suffer from a terminal illness and your remaining life expectancy is six months or less, there is no qualifying period and if you are eligible, you are entitled to the higher rate.

Personal Independence Payment (PIP)

People under state pension age who require long-term care at home due to a disability or illness can claim Personal Independence Payment. The amount you receive is determined by how your condition affects you, not what it is.

To be eligible, you must have had trouble with everyday living (such as eating and communicating) and/or getting around for three months. You will also expect the difficulties to persist for at least nine more months.

PIP is a tax-free, non-means-tested benefit you can receive whether you are working or not.

It is mandatory that you have lived in England, Scotland or Wales for at least two of the last three years.

How much you get is decided by an assessment, conducted by an independent health professional.

There are two components to PIP – daily living and mobility. You can get both, but it depends on how badly affected you are by your condition.

The two parts have different rates:

Daily Living component

Lower rate	£72.65 per week	£314.81 per month
Higher rate	£108.55 per week	£470.38 per month

Mobility component

Lower rate	£28.70 per week	£124.36 per month
Higher rate	£75.75 per week	£328.25 per month

If you are terminally ill and not expected to live for more than six months, you will receive the higher daily living rate. The mobility rate is determined by your needs.

For a detailed guide on PIP, click here.

Industrial Injuries Disablement (IIDB)

If you are disabled as a result of an accident in the workplace, or an illness caused by work, you could be entitled to a benefit of up to £221.50 per week. IIDB also covers more than 70 diseases, including asthma, deafness and asbestos-related diseases.

All people in the UK are entitled to this benefit, except if you are self-employed.

The incident must have taken place in the UK and the amount received depends on your circumstances. On a scale of 1 to 100 per cent, your disability level affects the amount you might receive, assessed by a medical advisor. In general, you need to be deemed 14 per cent disabled to be eligible.

The Government’s guidelines say if you are deemed 20 per cent disabled you could be entitled to £44.30 per week. You can get up to £221.50 if you are assessed as 100 per cent disabled.

If you are eligible for IIDB, you could be entitled to Constant Attendance Allowance (CAA).

Constant Attendance Allowance (CAA)

Constant Attendance Allowance is available for people who are ill or disabled as a result of an injury and require constant care. You must receive either Industrial Injuries Disablement Benefit (IIDB) or a War Disablement Pension to claim CAA.

Your entitlement to CAA will be automatically considered at the time of your IIDB medical assessment.

You are unable to get CAA if you already get Attendance Allowance and it may affect your claim to other means-tested benefits.

Depending on your disability and how much it affects you, there are four different allowance rates available in 2024/25:

• Part day – £44.35
• Full day – £88.70
• Intermediate – £133.05
• Exceptional – £177.40

Carer’s Allowance (CA)

If you care for someone at least 35 hours per week you could be entitled to £81.90 a week (£327.60 a month) in Carer’s Allowance, paid weekly or every four weeks. If you are under pension age, you get National Insurance credits each week towards your pension as well.

Eligibility

• Spend at least 35 hours a week caring for someone (you do not need to live with them or be related)
• The person you care for receives a qualifying disability benefit
• Be at least 16 years old
• Not earn more than £151 per week after tax, national insurance and expenses
• Have been in England, Scotland, Wales or Northern Ireland for a minimum of two of the last three years
• Normally live in England, Scotland, Wales or Northern Ireland, or live overseas as a member of the armed forces, or living in or moving to another EEA country or Switzerland
• Not be in full-time education or studying 21 hours per week or more
• Not be subject to immigration control

You do not need to live with or be related to the person you care for. However they must already receive one of the following disability benefits:

• Personal Independence Payment (daily living component)
• Disability Living Allowance (middle or highest rate)
• Attendance Allowance
• Constant Attendance Allowance (at or above normal maximum rate with an Industrial Injuries Disablement Benefit or at the basic rate with a War Disablement Pension)
• Armed Forces Independence Payment

Carer’s Allowance is not means-tested

But there is a cap on how much you can earn from work and it is taxable if the carer’s other combined sources of income, such as personal pensions, is above the tax threshold.

If you live in Scotland and receive Carer’s Allowance, you will automatically receive Carer’s Allowance Supplement (CAS), which is a lump sum of £288.60 paid twice a year (2024/25). This is done to bring Carer’s Allowance to the level of Jobseeker’s Allowance.

Here is a more detailed explanation of Carer’s Allowance.

If you receive State Pension you won’t be paid Carer’s Allowance. However if you are otherwise eligible, you could be awarded extra Pension Credit or Housing Benefit instead.

Pension Credit for the 2024/25 tax year

Pension Credit is a means-tested, two-part benefit for people with a lower income who have reached State Pension age.

The two parts are Guarantee Credit (up to £332.95 a week) and Savings Credit (up to £19.04 per week). You can get Pension Credit if you have savings and whether you are working or have retired.

Guarantee Credit

Guarantee Credit tops up your income. It is for single pensioners with a weekly income of less than £218.15 and for couples with a joint weekly income below £332.95.

• If you are single, Guarantee Credit will bring your weekly income to £218.15.
• For couples, Guarantee Credit will take the joint weekly income to £332.95.

Savings Credit

Savings Credit provides an income boost to people with some retirement savings. It can only be claimed by people who reached State Pension age before 6 April 2016 (65 years for men, 63 for women – 2016 State Pension ages).

Savings Credit can give single pensioners up to £17.01 extra per week and couples up to £19.04.

To qualify in 2024/25, your weekly income needs to be at least £189.80 if you are single and a combined £301.22 if you are in a couple.

Disability premiums

A disability premium is extra cash added to other benefits, such as the Housing Benefit. There are three kinds of disability premiums and you can get more than at the same time.

 The three types of disability premiums are:

• Disability premium
• Enhanced disability premium
• Severe disability premium

What is disability premium and how much can you get?

Claiming disability premium will get you £42.50 a week if you are single and £60.60 for couples.

To qualify for disability premium, you or your partner must be under State Pension age and either be registered blind or receiving any of below benefits:

• Personal Independence Payment (PIP)
• Armed Forces Independence Payment (AFIP)
• Disability Living Allowance (DLA)
• Attendance Allowance
• Constant Attendance Allowance
• Severe Disablement Allowance
• Incapacity Benefit
• War Pensioners Mobility Supplement
• Working Tax Credit (with disability element)

What is severe disability premium and how much can you get?

You will get £81.50 if you are a single person and £163 if you are in a couple and both of you are eligible.

To be able to claim severe disability premium, you must receive the disability premium or an Employment and Support Allowance related to income as well as one of these benefits:

• Daily living component of Personal Independence Payment (PIP)
• Armed Forces Independence Payment (AFIP)
• Middle or highest rate of the Disability Living Allowance care component
• Attendance Allowance or Constance Allowance funded with Industrial Injuries Disablement Benefit or War Pension

You will be unable to claim severe disability premium if someone caring for you receives Carer’s Allowance or Universal Credit (carers element).

What is enhanced disability premium and how much can you get?

You will be entitled to £20.85 a week if you are single. You get £29.75 per week if you are in a couple and one of you must be eligible.

Enhanced disability premium is only for people of under Pension Credit age. You must receive the disability premium or income-related Employment and Support Allowance, as well as one of the benefits below:

• Higher rate of the PIP daily living component
• Armed Forces Independence Payment
• The highest rate of the care component of Disability Living Allowance

You are also eligible if you are in the Employment and Support Allowance support group.

Follow this link for more information: How to claim disability premiums.

ESA support group (rates 2024/25)

The support group is for those who are assessed as unable to return to work because of their disability or health condition. You can get £138.20 per week (£90.50 rate + £47.70 support component), even if you are under 25 years old.

To be eligible you must have a limited work capability, be under State Pension age, contributed enough to National Insurance, are not receiving Statutory Sick Pay and not currently work.

You are ineligible for ESA if you receive either Jobseeker’s Allowance, Income Support or Universal Credit.

For more information, visit: ESA Support Group: Eligibility and rates.

Council Tax discounts and exemptions

If you are in receipt of the daily living or mobility component of Personal Independence Payment (PIP), you will be able to get money off your Council Tax bill.

The amount will depend on the rate of PIP you are getting.

Council Tax only applies to people living in England, Wales and Scotland. If you live in Northern Ireland, you might be able to pay reduced rates through the Rate Relief Scheme.