Guides & advice
Paying for Home Care: Your Funding Options Explained
By Roseline Fazal Masih · 20 June 2026 · 6 min read
Worried about the cost of care? A plain-English guide to how home care is paid for, from council support and NHS funding to Attendance Allowance and self-funding.
How is home care paid for?
Home care is paid for in one of a few ways, and many families use a mix: paying privately, support from the local council after an assessment, NHS funding where needs are mainly health-related, and benefits such as Attendance Allowance. Which applies depends on your needs and your finances, not on who provides the care.
Council funding and the means test
Your local council can arrange a free care-needs assessment for anyone who appears to need support. If you qualify, a separate financial assessment, often called the means test, looks at your income and savings to decide how much the council contributes. People with savings above a set threshold usually pay for their own care, while those below may receive help. For home care, the value of your own home is normally not counted. These thresholds change over time, so it is worth checking the current figures with your council or an independent adviser.
See current costs & fundingNHS Continuing Healthcare
If someone has significant, ongoing health needs, they may qualify for NHS Continuing Healthcare, which funds the full cost of their care and is not means-tested. Eligibility is decided by an assessment of health needs rather than a particular diagnosis, so it is always worth asking about where health needs are complex.
Attendance Allowance and other benefits
Attendance Allowance is a benefit for people over State Pension age who need help with personal care, whoever provides it and however they choose to spend it. It is not means-tested. Pension Credit, Carer's Allowance for a family carer, and Council Tax discounts may also be worth asking about.
Paying for care yourself
If you fund care privately, you only pay for the hours you use, which is part of why home care can cost less than a care home for lower levels of support. With us, visiting care starts from £26 an hour, and you always receive a clear written quote before any care begins, with no hidden fees.
Our home care servicesDirect payments and personal budgets
If the council funds part of your care, you can often take it as a direct payment, a personal budget you control, and choose your own provider rather than one the council picks. It is a good way to keep choice over who comes into your home.
Getting help to work it out
The funding system can feel complicated, but you do not have to work it out alone. At your free home visit we explain the routes that apply to your situation in plain English, and point you to the council, the NHS or an independent benefits adviser where that is the right next step.
Book a free home visitCommon questions
Who is entitled to free home care?
Free home care is not automatic. The council may fund some or all of your care after a needs assessment and a means test, and the NHS funds care in full through Continuing Healthcare where needs are mainly health-related. Many people pay privately, in full or in part.
Does the council pay for home care?
It can. After a free care-needs assessment, a financial assessment looks at your income and savings. Depending on the result, the council may pay some or all of your care, or you may pay privately. Your income and savings are both looked at, and for home care the value of your home is normally not counted.
Is Attendance Allowance means-tested?
No. Attendance Allowance is not means-tested and does not depend on your savings or income. It is for people over State Pension age who need help with personal care, and you can spend it on the support that helps most, including home care.
How much does home care cost if I pay myself?
With Fabulous Homecare, visiting care starts from £26 an hour, and you only pay for the hours you use. You will always get a clear written quote after a free home visit, whether care is short daily visits or live-in support.
Roseline Fazal Masih
Registered Manager · Registered Nurse
Roseline Fazal Masih is the Registered Manager of Fabulous Homecare and a registered nurse. Fabulous Homecare is registered with and inspected by the CQC, rated “Good”. So you can check our record independently.