What Financial Help is Available for Care? A Complete Guide for Families
If you're reading this, chances are you're navigating one of life's most challenging transitions: ensuring your parent receives the care they need while managing the financial realities that come with it. You're not alone in feeling overwhelmed.
Between work commitments, your own family responsibilities, and the emotional weight of seeing your parent need help, the question of how to pay for care can feel like yet another burden on already tired shoulders.
The good news? There's more financial help available for elderly care than many families realise. From fully-funded NHS support to benefits, local authority funding, and innovative financial solutions, understanding your options can transform what feels impossible into something manageable.
Let's walk through everything you need to know about financial help for care, so you can make informed decisions that honour both your parent's dignity and your family's financial wellbeing.
Understanding the True Cost of Care in the UK
Before we explore the financial help available, it's important to understand what you might be facing. In 2025, the average cost of residential care in the UK exceeds £800 per week, while live-in care at home can range from £1,000 to £1,500 per week depending on the level of support needed.
For many families, these figures are eye-watering. But here's what's crucial to understand: very few families pay the full cost of care entirely out of pocket. The UK has multiple funding streams designed to help, and most families qualify for at least some form of financial assistance.
NHS Continuing Healthcare: Fully-Funded Care for Complex Health Needs
Let's start with the most comprehensive option: NHS Continuing Healthcare (CHC). This is a fully-funded care package that covers all care costs—whether at home, in a care home, or in a hospice—for individuals with significant, ongoing health needs.
Who Qualifies for NHS Continuing Healthcare?
CHC isn't based on a specific diagnosis. Instead, eligibility is determined by having a "primary health need"—meaning your parent's main reason for needing care is health-related rather than social or personal care needs.
The assessment considers 12 care domains including:
Mobility and physical functioning
Nutrition and hydration needs
Continence management
Skin integrity and tissue viability
Breathing difficulties
Behaviour and psychological needs
Cognition and mental health
Communication abilities
Drug therapies and medication management
A multidisciplinary team evaluates the nature, complexity, intensity, and unpredictability of your parent's needs. If these needs are deemed sufficiently complex or severe, they may qualify for full NHS funding.
How to Apply for NHS Continuing Healthcare
The process typically begins with an initial screening using a Checklist assessment, which can be completed by a GP, hospital discharge team, or social worker. If the Checklist indicates potential eligibility, a full assessment follows using the Decision Support Tool (DST).
For families dealing with rapidly deteriorating conditions or terminal illness, there's a Fast Track Pathway that expedites the process, ensuring care funding is in place quickly when it's needed most.
The decision is usually communicated within 28 days, and if approved, the NHS funds all care costs. Even if your parent isn't eligible for full CHC, they may qualify for NHS-funded nursing care or a joint health and social care package.
Important note: CHC eligibility is reviewed regularly as needs change. If you believe your parent should qualify but has been refused, you have the right to appeal the decision.
Local Authority Funding: Means-Tested Support for Social Care
If your parent doesn't qualify for NHS Continuing Healthcare, the next avenue is local authority funding. This is means-tested, meaning the amount of support depends on your parent's income and assets.
Understanding the Capital Limits
In 2025, the financial thresholds in England are:
Upper capital limit: £23,250 – Those with assets above this amount must pay the full cost of their care
Lower capital limit: £14,250 – Those with assets below this pay nothing toward care costs
Between £14,250 and £23,250 – A sliding scale applies, with a tariff income assumed from capital
It's crucial to understand that the family home is often excluded from the means test if:
A spouse or partner still lives there
A relative aged 60 or over lives there
A disabled relative lives there
Your parent is receiving care at home (not in residential care)
The Assessment Process
Contact your parent's local council to request a care needs assessment. This evaluates what support they need, while a separate financial assessment determines what they can afford to contribute.
The process can feel intrusive—discussing your parent's finances and intimate care needs isn't easy. But remember, the assessors are there to help identify all the support available. Be honest about your parent's needs and your own limitations as a family carer.
Attendance Allowance: Non-Means-Tested Support for Daily Living
Here's a benefit that many families miss: Attendance Allowance. This is a tax-free, non-means-tested benefit for people aged 65 or over who need help with personal care due to illness or disability.
2025 Attendance Allowance Rates
Lower rate: £72.65 per week – For those needing help during the day or night
Higher rate: £108.55 per week – For those needing help both day and night, or who need supervision to avoid danger
The beauty of Attendance Allowance is that it's not means-tested—your parent can receive it regardless of their savings or income. It's paid directly to them to use as they choose, whether that's contributing to professional care costs, paying family members who help, or covering other expenses related to their care needs.
Importantly, receiving Attendance Allowance can also unlock other benefits, including increased Pension Credit and Council Tax Reduction.
Pension Credit: Topping Up Income for Care Costs
Pension Credit is designed to top up the income of people over State Pension age. In 2025, Guarantee Credit ensures a minimum weekly income of:
£218.15 for single people
£332.95 for couples
If your parent's income falls below these thresholds, Pension Credit makes up the difference. This additional income can significantly reduce what they need to pay toward care costs in a means-tested assessment.
Even better, receiving Pension Credit Guarantee Credit automatically entitles your parent to full Council Tax Reduction, potentially saving hundreds of pounds per year.
Deferred Payment Agreements: Protecting the Family Home
One of the biggest fears families face is being forced to sell the family home to pay for care. A Deferred Payment Agreement (DPA) offers a solution.
A DPA allows your parent to defer paying for residential care costs, using their home as security. The local authority covers the care fees, and the debt is repaid from the estate after your parent passes away or if the property is sold.
Key Benefits of Deferred Payment Agreements
No immediate property sale required – Your parent can keep their home
Preserves choice – Enables access to preferred care homes that might otherwise be unaffordable
Manageable interest rates – Interest is charged but is typically lower than commercial loans
Peace of mind – Removes the pressure of immediate financial decisions during an already stressful time
To qualify, your parent must have eligible care needs, insufficient income to cover care costs, and own a property that isn't disregarded (for example, if a spouse still lives there, the property is already protected).
Council Tax Reductions for Care Recipients
Council Tax might not be the first thing on your mind when arranging care, but reductions can save significant amounts:
Severely Mentally Impaired (SMI) Discount
If your parent has a severe mental impairment (including dementia), they may be disregarded for Council Tax purposes. If they live alone, this could mean a 100% discount. If they live with one other person, it could reduce the bill by 25%.
Live-in Carer Discount
If your parent has a live-in carer (not a spouse or partner), that carer can be disregarded for Council Tax, potentially reducing the bill by 25%.
Disability Reduction Scheme
If your parent's home has been adapted for their disability (such as a wheelchair-accessible bathroom or stairlift), they may qualify for a reduction to a lower Council Tax band.
Additional Financial Support Options
Veterans' Support
If your parent served in the armed forces, additional support may be available through:
The Armed Forces Compensation Scheme
War Disablement Pension (disregarded in means tests)
Charitable organisations like the Royal British Legion and SSAFA
Charity Grants
Numerous charities provide one-off grants or ongoing support for elderly care costs:
Turn2Us – Searchable grants database
Age UK – Local branches often have discretionary funds
Independent Age – Grants for older people in financial hardship
Trade-specific charities – Many professions have benevolent funds for retired members
Equity Release
For homeowners aged 55+, equity release allows access to funds tied up in property value while continuing to live there. This can fund care costs, home adaptations, or supplement income. However, it's essential to seek independent financial advice, as equity release affects inheritance and may impact means-tested benefits.
How Sylvian Care Supports Families Through the Financial Journey
At Sylvian Care, we understand that arranging care isn't just about finding the right support—it's about making it financially sustainable for your family.
Our approach includes:
Transparent Pricing: We provide clear, detailed information about our care costs upfront, with no hidden fees. Whether you're considering domiciliary care, live-in care, or specialist dementia support, you'll know exactly what to expect.
Funding Guidance: Our experienced team can help you understand which funding options might apply to your situation and guide you through the application processes. While we're not financial advisors, we've supported hundreds of families through this journey and can share what we've learned.
Flexible Care Packages: We design care around your parent's needs and your family's budget. Perhaps full-time care isn't necessary yet, but a few hours of daily support would make a significant difference. We'll work with you to find the right balance.
Partnership with Kinly: For families who need financial solutions beyond traditional funding routes, our partnership with Kinly means we can connect you with specialists who understand care funding inside and out.
Ongoing Support: Financial circumstances and care needs change. We regularly review care plans with families to ensure they remain appropriate and sustainable.
Taking the First Steps: Your Action Plan
If you're feeling overwhelmed by the financial aspects of care, here's a practical action plan to get started:
Step 1: Request a Care Needs Assessment
Contact your parent's local council to arrange a care needs assessment. This is free and creates a formal record of their needs, which is essential for accessing funding.
Step 2: Check NHS Continuing Healthcare Eligibility
Ask your parent's GP or hospital discharge team about CHC screening. Even if you're unsure whether they'll qualify, it's worth exploring—full NHS funding makes an enormous difference.
Step 3: Claim Attendance Allowance
If your parent is 65+ and needs help with personal care, apply for Attendance Allowance. The application form is available from the DWP website or by calling 0800 731 0122.
Step 4: Review Pension Credit Entitlement
Use the government's Pension Credit calculator to check eligibility. Even small amounts of additional income help, and it unlocks other benefits.
Step 5: Explore Property-Based Solutions
If your parent owns their home but has limited income, speak with Kinly about options that don't require an immediate property sale.
Step 6: Seek Professional Care Advice
Contact Sylvian Care for a free, no-obligation consultation. We'll discuss your parent's needs, explain our services, and help you understand the realistic costs involved.
Step 7: Get Independent Financial Advice
For complex situations involving significant assets, inheritance planning, or equity release, consult an independent financial advisor who specialises in later-life planning.
Frequently Asked Questions About Financial Help for Care
How much does care cost in the UK?
Care costs vary significantly by location and type of care. In 2025, residential care averages over £800 per week, while domiciliary care typically costs £20-30 per hour. Live-in care ranges from £1,000-£1,500 per week. However, many families don't pay the full cost due to various funding options available.
Do I have to sell my parent's home to pay for care?
Not necessarily. The home is often excluded from means testing if a spouse, partner, or certain relatives still live there. For care at home, the property isn't included in the assessment. Deferred Payment Agreements also allow care costs to be paid from the estate after death, avoiding an immediate sale.
What's the difference between NHS Continuing Healthcare and local authority funding?
NHS Continuing Healthcare is fully funded by the NHS for people with complex health needs—there's no means test and no contribution required. Local authority funding is means-tested and typically covers social care needs rather than primarily health-related needs.
Can my parent receive care at home instead of a care home?
Absolutely. Many funding options, including NHS Continuing Healthcare, Attendance Allowance, and local authority funding, can be used for care at home. In fact, care at home is often preferred as it allows your parent to maintain independence and stay in familiar surroundings.
How long does it take to arrange care funding?
This varies by funding type. NHS Continuing Healthcare decisions typically take 28 days (or faster via Fast Track for urgent cases). Local authority assessments usually take a few weeks. Attendance Allowance claims can take 6-8 weeks. Kinly's financial solutions can often be arranged within days when care is needed urgently.
What if my parent refuses to accept outside help?
This is one of the most common challenges families face. Often, resistance comes from fear of losing independence or dignity. Starting with minimal support—perhaps just a few hours per week—can help your parent adjust gradually. At Sylvian Care, we specialise in building trusting relationships that respect your parent's autonomy while ensuring their safety.
Are there grants available for home adaptations?
Yes. The Disabled Facilities Grant (DFG) provides up to £30,000 (in England) for essential home adaptations like stairlifts, wet rooms, or ramps. This is means-tested but separate from care funding. Local councils administer DFGs, and occupational therapists can assess what adaptations would help.
Can I be paid to care for my parent?
In some cases, yes. If your parent receives a Direct Payment from the local authority, they can choose to pay you for providing care (though usually not if you live in the same household). Attendance Allowance can also be used to compensate family carers, though it's paid to the person receiving care, not the carer.
What happens if my parent's care needs increase?
All funding arrangements should be reviewed regularly as needs change. NHS Continuing Healthcare is reviewed at least annually. Local authority care plans are also reviewed periodically. If needs increase significantly, you can request a reassessment at any time. At Sylvian Care, we work with families to adjust care packages as circumstances evolve.
Is financial help available for dementia care?
Yes. People with dementia may qualify for NHS Continuing Healthcare if their needs are sufficiently complex. They're also likely eligible for Attendance Allowance and may qualify for the Severely Mentally Impaired Council Tax discount. Specialist dementia care, like that provided by Sylvian Care, can be funded through any of the routes discussed in this guide.
Finding Peace of Mind in Uncertain Times
Navigating the financial aspects of elderly care is rarely straightforward, but understanding your options transforms anxiety into action. You don't have to figure this out alone, and you don't have to sacrifice your parent's comfort or your family's financial security.
The guilt you might feel about not being able to do everything yourself? That's a sign of how much you care, not a reflection of inadequacy. Seeking professional care support isn't giving up—it's ensuring your parent receives consistent, expert care while preserving your relationship as their child, not just their carer.
Financial help for care exists precisely because society recognises that families need support during this challenging life stage. Whether through NHS funding, local authority support, benefits, innovative solutions like those offered by Kinly, or a combination of approaches, there's almost always a way forward.
Ready to Explore Your Care Options?
At Sylvian Care, we've supported hundreds of families through this journey. We understand the emotional weight of these decisions and the practical challenges of coordinating care while managing everything else in your life.
Our promise to you:
Compassionate, person-centred care that honours your parent's dignity and preferences
Transparent information about costs and funding options
Flexible care packages designed around your family's needs and budget
Ongoing support as circumstances change
Partnership with financial specialists like Kinly to ensure care is sustainable
Take the next step today:
📞 Call us for a free, no-obligation consultation to discuss your parent's needs and explore how we can help.
🌐 Visit sylviancare.co.uk to learn more about our services, read testimonials from families we've supported, and access helpful resources.
💬 Request a care assessment to understand exactly what support would benefit your parent and what it might cost.
You've already taken an important step by educating yourself about financial help for care. Now let us help you turn that knowledge into a care plan that works for your whole family.
Because your parent deserves care that honours their lifetime of independence and dignity—and you deserve support that makes this journey manageable.