Paying for live-in care in 2026: a guide for families

The three main funding routes are NHS Continuing Healthcare, local authority funding, and self-funding. Each has different eligibility criteria, different timelines, and different implications for how care is arranged.

For families arranging live-in care for the first time, the starting point is almost always NHS Continuing Healthcare. It’s the most significant route and, where awarded, covers the full cost of care without a means test. Local authority funding and self-funding options are assessed alongside or after.

The sections below cover each route in detail, including how to apply, what to expect, and where the common sticking points are.

NHS Continuing Healthcare (NHS CHC) is a fully funded package arranged and paid for by the NHS for adults whose ongoing care needs are assessed as primarily a health need rather than a social care need. It covers the full cost of live-in care at home (including carer costs) and is not means-tested. Income and savings are irrelevant to eligibility.

Eligibility is determined through a formal two-stage process:

• A checklist assessment, carried out by a nurse or other healthcare professional, determines whether a full assessment is warranted
• A full assessment using the Decision Support Tool (DST) is then carried out by a multidisciplinary team, typically including a GP, nurse, and social worker

Families can request a checklist assessment through a GP, community nurse, or hospital discharge team. The full step-by-step process, including how to prepare for the DST and what to do if a decision is refused, is covered in the NHS CHC guide for dementia.

A fast-track CHC pathway exists for people approaching the end of life. Where a clinician confirms a rapidly deteriorating condition, approval can sometimes be granted within 48 hours – meaning care can be arranged quickly when time is short.

NHS CHC is frequently underclaimed. Families who’ve been told a person doesn’t qualify should ask for the decision in writing and understand their right to request a review.

What is a personal health budget?

People who qualify for NHS CHC have a legal right to a personal health budget.

Rather than having the NHS arrange care directly, the family receives an agreed amount of NHS funding to manage and organise care themselves. This gives more control over who provides the care and how it’s structured – including the ability to choose a CQC-regulated provider and match with a carer whose skills are the right fit for the person’s condition and situation.

Hometouch’s full guide to personal health budgets for dementia care explains how to request one, what it covers, and how it works in practice.

What is Funded Nursing Care?

Funded Nursing Care (FNC) is a separate NHS contribution towards the nursing element of fees for people living in care homes who have registered nursing needs. It doesn’t apply to live-in care at home, but it’s worth understanding if a care home placement is being considered alongside a home care arrangement. It’s not means-tested and is paid directly to the care home by the NHS.

Families who don’t qualify for NHS CHC or local authority funding, or who want to top up a funded package, can draw on several self-funding routes.

Attendance Allowance

Attendance Allowance is a non-means-tested weekly benefit for people over State Pension age who need personal care support due to a physical or mental condition. There are two rates in 2026:

• The lower rate applies to people who need help during the day or at night
• The higher rate applies to people who need help during both day and night

Attendance Allowance can be used directly towards the cost of a live-in carer at home. It doesn’t need to be declared as income for most means-tested benefit assessments and doesn’t affect NHS CHC eligibility.

Pension credit and other benefits

People on a low income may qualify for pension credit, which tops up weekly income to a guaranteed minimum and can unlock access to other means-tested support. A free benefits check through Age UK or Citizens Advice is worth completing before finalising a funding plan – both services are independent and free to use.

Equity release

Some families use equity release to fund care at home, releasing money tied up in a property without needing to sell or move.

There are two main types: lifetime mortgages and home reversion plans. Both provide funds that can be used towards live-in care costs, but both carry significant long-term implications for property ownership and the value of the estate. Equity release can also affect entitlement to means-tested benefits.

Independent financial advice from a SOLLA-accredited adviser is strongly recommended before proceeding.

For many families, live-in care is comparable in weekly cost to a residential care home. For couples where one carer supports two people at home, it’s often considerably less expensive than two separate care home placements. There are also hidden costs in residential care – including personal care top-ups, therapy fees, and hairdressing – that are rarely included in the headline weekly rate.

The full cost breakdown for live-in care in 2026 sets out weekly rates across different care levels and explains what’s included.

The order of priority for most families is as follows:

Start with NHS CHC

If the person’s needs are primarily health-related – as they often are with advanced dementia care at home, MND, heart failure, or other complex conditions – CHC is the most significant route and the one to pursue first. A GP or community nurse can request the checklist assessment at any point, including while the person is in hospital

Request a local authority needs and financial assessment

If CHC isn’t awarded or only partially awarded, request a local authority needs and financial assessment from the relevant council. This can run alongside a CHC application or appeal

Apply for Attendance Allowance regardless

Apply for Attendance Allowance regardless of which other routes are being pursued. It’s non-means-tested and doesn’t affect CHC or most local authority assessments

Find a SOLLA-accredited adviser

If self-funding in full, a SOLLA-accredited financial adviser can map out the most tax-efficient approach across savings, property, and available benefits, including whether a deferred payment agreement or equity release is appropriate

Hometouch’s care advisers support families through every stage of this process – from understanding which routes are likely to apply, to navigating CHC paperwork and explaining what a specialist live-in care arrangement would cost alongside available funding.

Talk to a care adviser today – no pressure, just answers to your questions.

Does the NHS pay for live-in care at home?

Yes, in some cases. NHS Continuing Healthcare can fund the full cost of live-in care for adults whose needs are assessed as primarily a health need. It’s not means-tested – income and savings don’t affect eligibility. A fast-track pathway is available for people approaching the end of life, with approval sometimes possible within 48 hours. Eligibility is determined through a formal assessment process that can be initiated by a GP, community nurse, or hospital discharge team.

What is the means test threshold for local authority care funding in 2026?

In England, people with savings and assets below £23,250 may be eligible for partial or full local authority funding towards care costs. Those with assets above this threshold are expected to self-fund until savings fall below it. The financial assessment covers savings, income, and property – though property isn’t counted if a spouse or dependent relative continues to live there. The assessment will be carried out by your local council.

Can Attendance Allowance be used to pay for a live-in carer?

Yes. Attendance Allowance is a non-means-tested weekly benefit available to people over State Pension age who need personal care support. Both the lower and higher rates can be used towards the cost of live-in care at home. It doesn’t need to be declared as income for most means-tested benefit assessments and doesn’t affect NHS CHC eligibility.

Is live-in care cheaper than a care home in 2026?

For a single person, the weekly cost of live-in care and a residential care home is often comparable. For couples, live-in care is frequently less expensive – one carer supports both people at home, whereas a care home charges two full placement fees. The full 2026 cost breakdown sets out what’s included in live-in care costs and how they compare at different levels of need.

What is a personal health budget and how does it work?

A personal health budget is an amount of NHS funding allocated to a person who qualifies for NHS Continuing Healthcare, allowing them to choose and manage their own care rather than having the NHS arrange it. Families can use it to select a CQC-regulated provider and structure care around the person’s preferences and routine. It’s a legal right for anyone who qualifies for NHS CHC.

What if we don’t qualify for NHS CHC or local authority funding?

Several self-funding options are available. Attendance Allowance can be claimed regardless of income or savings. Pension credit is available to people on a low income and can unlock access to additional means-tested support. Equity release and deferred payment agreements are options for families with property.

A free benefits check through Age UK or Citizens Advice is a practical first step, and a SOLLA-accredited financial adviser can help identify the most appropriate combination of options.

Can I use a personal health budget to choose my own carer?

Yes. A personal health budget gives families the freedom to choose their own care provider and carer, rather than accepting whoever the NHS assigns. This includes the ability to work with a CQC-regulated provider, such as Hometouch, where every carer is individually vetted and matched to the person’s specific needs, condition, and character.

Is equity release a good way to fund care?

Equity release can provide funds to cover care costs without needing to sell the family home, but it’s a significant financial decision with long-term implications for property ownership and the estate. It can also affect entitlement to means-tested benefits. Independent financial advice from a SOLLA-accredited adviser is essential before proceeding – the Society of Later Life Advisers maintains a directory of accredited advisers who specialise in later-life financial planning.

Paying for live-in care feels complicated when you’re in the middle of it. But the routes are finite, and the starting point is almost always the same: find out whether NHS CHC applies, then work outward from there. Most families are eligible for more support than they realise – the challenge is navigating a system that doesn’t always make it easy to understand what’s available.

Hometouch’s care advisers work with families at every stage of this process, including helping with CHC paperwork, understanding what local authority funding means in practice, and explaining exactly what a Hometouch arrangement would cost alongside the available funding.

Speak to a care adviser – no pressure, just answers to your questions.

References

1. NHS. Continuing Healthcare. NHS.uk. Accessed May 2026.
2. Gov.uk. Attendance Allowance. Gov.uk. Accessed May 2026.
3. Gov.uk. Help from your local council with care costs. Gov.uk. Accessed May 2026.
4. Society of Later Life Advisers. Find an adviser. societyoflaterlifeadvisers.co.uk. Accessed May 2026.
5. Age UK. Benefits and entitlements. ageuk.org.uk. Accessed May 2026.