Understanding funding for live-in care can feel overwhelming when you’re trying to support a loved one. Our guide explains when councils contribute to costs and how to access available support.Caring for someone at home raises important questions about funding. Many families wonder whether their local council will help pay for live-in care, or if they’ll need to cover costs privately.Local authorities can contribute to live-in care costs when both care needs and financial criteria are met. Understanding how this works helps you make informed decisions during an already challenging time.
Key insights
- Council funding is available based on care needs and finances – If your loved one requires help with daily activities and has savings below £23,250, your local council may contribute to live-in care costs.
- Your home isn’t counted in the means test – When your loved one lives in their own home, its value is excluded from the financial assessment, making live-in care accessible for many homeowners.
- Direct payments give you control over care choices – Eligible families can receive direct payments to select their own live-in carer, rather than accepting council-arranged care.
How council funding for live-in care works
When you or your loved one needs help with daily activities – washing, dressing, moving safely, or managing medication – contact your local council’s social services team to request a care needs assessment. This assessment determines whether ongoing support is needed to live safely at home.If care needs are confirmed, the council conducts a financial assessment (means test) to establish your contribution level. Depending on income and savings, the council may fund some or all of your care directly, or provide direct payments allowing you to choose and manage your own live-in carer.Who qualifies for council support?
You may qualify for local authority support if daily activities present significant challenges. This includes difficulty with personal care such as washing or dressing, preparing meals, using the toilet safely, or moving around your home.When the council confirms your needs meet the national eligibility threshold, they have a legal duty to ensure those needs are met – though they can charge for most services.Understanding the means test
The financial assessment examines your income, savings, and certain benefits. Currently, assets over £23,250 mean you’ll be expected to contribute fully toward care costs. Below this threshold, the council may cover part or all of the cost.Your home’s value isn’t counted if you’re still living in it. This means homeowners with limited savings may still qualify for support with live-in care.Some benefits are excluded from the means test, including Disability Living Allowance (DLA) and Personal Independence Payment (PIP) mobility components, Pension Credit, Savings Credit, winter fuel payments, certain veteran or war widow pensions, and charitable or family gifts.The means test assumes all benefit entitlements are being claimed, so check that your loved one receives every benefit they qualify for.Typical council contributions
Local council payments for residential care vary based on local budgets and policies. Councils’ payments towards live-in care vary widely and are often below what full private-pay live-in care costs. Live-in care often costs more, which can make councils hesitant to fund it fully. However, families usually receive direct payments and can top up the difference to arrange live-in care at home instead of residential care.Your choice in care settings
Local authorities must consider your preferences. When live-in care can safely meet care needs, it should be available as an option. Some councils prefer care homes because they have existing contracts at lower rates. Families who want live-in care may need to advocate for this choice and demonstrate how it meets both safety and well-being requirements.NHS continuing healthcare and intermediate care
In some cases, care may be fully funded by the NHS rather than the council. NHS Continuing Healthcare (CHC) provides free ongoing care for people with significant health needs. Eligibility depends on the level of medical need, not income or diagnosis. Your GP or hospital team can arrange a CHC assessment using the official checklist.If your loved one is recovering from illness or surgery, they may qualify for intermediate care. This can be a short-term, free rehabilitation package (up to six weeks) designed to help regain independence after hospital discharge.Personal budgets and direct payments
When you’re eligible for council support, you’ll receive a personal budget showing the total cost of meeting care needs and your expected contribution.You can choose for the council to arrange carers on your behalf, or receive direct payments so you can select your own provider, like Hometouch. This approach gives families greater control over who provides care in the home.How partner assets are assessed
When assessing finances, the council usually considers only the care recipient’s assets, not their spouse’s or civil partner’s. Joint accounts are divided equally unless there’s evidence the balance isn’t shared 50/50.When self-funding is necessary
When you’re not eligible for council or NHS funding, you’ll need to pay privately. For homeowners, live-in care can still be cost-effective compared to residential care, since your property isn’t included in the means test and you continue living comfortably at home.Before deciding, seek independent financial advice and explore care funding options, such as equity release, annuities, or deferred payment agreements through your local council.What this means for your family
- Councils can pay for live-in care when you meet both care need and financial criteria
- Your home isn’t counted in the means test if you live there
- Direct payments offer flexibility to choose your own live-in carers
- NHS Continuing Healthcare may fully fund care for complex health needs
- Families can top up council funding to access their preferred care arrangements
“Navigating council funding can feel complicated, but you don’t have to work through it alone. Our care team helps families understand their options and guides them through the assessment process, ensuring you get the support available to you.” – Tracey Chapman, Clinical Manager at Hometouch
Need guidance on care funding?
Understanding care funding options shouldn’t add to your stress during an already difficult time. Our care team has guided thousands of families through these decisions and can help you understand what support might be available for your situation.Talk to one of our care experts. No pressure, just clear answers when you need them most.Related Care Advice
Dr Jane Gilbert
Jane has over 20 years’ experience as a health writer and TV presenter. Jane writes on a wide variety of clinical and care topics – from explaining the latest studies and research to unpacking conditions and discussing treatment options. Jane holds a MBBS degree from Imperial College, London and spent seven years working in the NHS.
