How to Get Funding for Elderly Care in the UK

Care funding in the UK is complex, and many families struggle to understand what support is available. This guide explains the main funding sources, eligibility criteria, and application processes for elderly care funding in England (note: rules differ slightly in Scotland and Wales).

The Care Cost Threshold

In England, the means-test threshold for care costs is based on your total "capital" (savings, investments, and property equity, minus certain exemptions). Here are the key thresholds:

• Above £23,250 -- You must pay for care entirely yourself.
• £14,250 to £23,250 -- You receive partial support and must contribute towards care costs.
• Below £14,250 -- The local council typically covers care costs, minus an income-based contribution.
• Your home -- Usually disregarded if you or your partner are over 60 or disabled. A Deferred Payment Agreement may be arranged instead of selling the property.

1. NHS Continuing Healthcare

NHS Continuing Healthcare (CHC) provides full funding for care for individuals who have a primary health need (as opposed to just social care needs). This is determined through a comprehensive CHC assessment using a decision support tool. If eligible, the NHS covers 100% of care costs, which could include:

• Live-in care at home
• Nursing care
• Personal care
• Specialised equipment and modifications
• Medication related to the primary health need

The assessment considers needs in 12 categories, including cognition, communication, behavioural symptoms, psychological symptoms, sensation, emotion, skin integrity, mobility, nutrition, hydration, breathing, and continence. If two or more needs have a score of "substantial" or one need scores "severe," the individual typically qualifies for CHC funding.

2. Local Authority Social Care

If your capital falls below the £23,250 threshold, you can apply to your local council for social care support. The process involves:

• Care assessment -- The council evaluates your care needs with a trained social care assessor.
• Financial assessment -- Your income and capital are assessed to determine your weekly contribution.
• Personal Budget -- Based on assessed needs, the council calculates a weekly budget for your care.
• Top-up payments -- If you choose a provider whose fees exceed your council budget, you may pay the difference (known as "cost sharing").

Important: the local authority may place you with a specific provider rather than allowing you to choose your preferred one. This is known as "arranged care"

3. Attendance Allowance

Attendance Allowance (AA) is a tax-free benefit for people aged 65 and over (or under 65 if entitled to the care component of Disability Living Allowance) who need help with personal care due to a health condition expected to last at least 6 months.

Current rates (2024/25):

• £101.75 per week (for care needed during the day and/or night)

Attendance Allowance is not means-tested and does not affect other benefits. It can be used to help pay for care services, including live-in care. You can apply by calling the Benefits Enquiry Line on 0800 917 2222 or visiting gov.uk.

4. Pension Credit

Pension Credit (Guarantee Credit) tops up your income if it falls below a certain level. While not specifically for care funding, it can free up income to contribute towards care costs. The guarantee is up to £201.82 per week (single) or £289.80 per week (couple).

5. Self-Funding Options

If you need to self-fund care, consider these approaches:

• Equity-release schemes -- Lifetime mortgages or home reversion plans can unlock capital from your property (seek independent financial advice).
• Personal loans or secured loans -- Some providers offer care-specific financing plans with deferred interest.
• Family support -- Consider discussing cost-sharing arrangements with other family members who benefit from care provision.

How to Apply for Care Funding

The application process typically follows these steps:

1. Contact your local council's adult social care team to request a care needs assessment and financial assessment.
2. Apply for Attendance Allowance (can be done simultaneously via gov.uk or the Benefits Enquiry Line).
3. Request an NHS CHC assessment through your GP if you have complex health needs that may qualify.
4. Submit required documentation including proof of identity, income, capital, and property ownership.
5. Review the eligibility decision and appeal if necessary (care assessments can be appealed within 6 months of decision date).