Understanding Social Care Funding

Planning for care — whether for yourself or a loved one — can feel overwhelming, especially when it comes to the financial side of things. Many people aren’t sure what help is available, how much care costs, or whether they’ll have to pay for it themselves.

In the UK, some care is publicly funded, while other services must be paid for privately. The amount of support you may be entitled to depends on both your care needs and your financial situation. Knowing how social care funding works can help you make informed decisions and plan confidently for the future.

Social care funding helps people pay for care services like personal care, support at home, and help with daily living. In England, whether someone gets help with the cost of care depends on two things:

1) How much support they need (this is decided through a care needs assessment).

2) How much money they have (this is decided through a financial assessment).

The local council will look at your savings, income, and sometimes property to work out if you can get financial support. The current rules in England (2025) are:

- Over £23,250 in savings and assets?
Unfortunately, you will need to pay for the full cost of your care, this is called self-funding.

- Between £14,250 and £23,250?
You may get some help, but you’ll still have to make a contribution to your care which will vary in price.

- Less than £14,250?
You could qualify for the maximum help available. The council will look at your income but won’t take savings into account.
 

Will my house be counted?

No, If you’re receiving care at home, the value of your house is not included in the financial assessment. However, if you should move into a care home permanently, the value of your property might be counted — unless certain people live there, like your partner or a dependent relative.
 

💡 Other Types of Support.

NHS CHC (Continuing Healthcare):

NHS Continuing Healthcare is a package of care fully funded by the NHS, available to people with significant, ongoing, and complex health needs. This could include conditions such as advanced dementia, neurological disorders, or severe disabilities that require regular nursing or specialist care.

It can be provided in your own home, a care home, or another setting. If you qualify, all your care costs are covered — including both healthcare and personal care. To be eligible, a full assessment is carried out by a team of healthcare professionals using a national framework.

🔎 Tip: It’s not means-tested, so your savings or property do not affect eligibility.

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Direct Payments and Personal Budgets:

If you qualify for support from your local council, they may offer you a personal budget — an amount of money allocated to meet your assessed care needs. You can choose to receive this budget in the form of a Direct Payment, which means the money is paid directly to you (or your representative) so that you can arrange your own care.

This gives you more control and flexibility — for example, you could choose your preferred care provider, employ a personal assistant, or use a family-run service like Vital Nest that aligns with your values and routines.

✅ You’ll still need to keep records of how the money is spent, and the local authority will check that it’s being used for agreed care needs.

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Self Funding:

Like mentioned earlier; If you have over £23,250 in savings and assets, or if you choose not to apply for council help, you’ll be considered a self-funder. This means you’re responsible for arranging and paying for your own care services.

Some people also self-fund while waiting for an assessment or choose to pay privately so they can access specific types of care or support quickly.

Self-funding gives you full control over your care decisions, and many families appreciate the ability to select a provider that matches their needs, preferences, and ethical standards — like those at Vital Nest.

📝 It’s a good idea to seek advice early and plan ahead if you’re likely to self-fund. In some cases, financial products like care annuities or deferred payment agreements may help.