Council funding for care at home
Your local council can assess your loved one’s needs and finances, and may help pay for care at home. Here’s how the process works, step by step.
Step 1: the care needs assessment
Anyone who appears to need care and support can ask their council for a free care needs assessment, whatever their finances. The council looks at what your loved one can and can’t do, what matters to them, and whether they meet the national eligibility criteria set by the Care Act 2014.
If you help look after them, you can ask for a carer’s assessment too.
In our area this means Surrey County Council, Kent County Council, West Sussex County Council, East Sussex County Council, Brighton & Hove City Council or Medway Council, depending on where your loved one lives.
Step 2: the financial assessment
If your loved one has eligible needs, the council works out how much they should pay towards their care. It looks at income, savings and other capital.
| Savings and capital | What usually happens |
|---|---|
| Over £23,250 | Usually pays the full cost of care (a “self-funder”) |
| £14,250 to £23,250 | Contributes from income, plus £1 a week for every £250 of capital over £14,250 (“tariff income”) |
| Under £14,250 | Capital is ignored; contributes from income only |
These limits are the same for 2026 to 2027. For care at home, the value of the home your loved one lives in is not counted.
People receiving care at home must be left with a minimum amount of income each week (the “minimum income guarantee”). For a single person of Pension Credit age this is £241.45 a week in 2026 to 2027. The council should also allow for disability-related expenses.
A cap on lifetime care costs was due to start in October 2025, but it was cancelled in 2024, so these rules continue to apply.
Step 3: personal budgets and direct payments
If the council will contribute, it sets a personal budget: the amount it says the agreed care should cost. Your loved one can ask for this as a direct payment, which they or a family member then use to arrange the care in their care plan.
Direct payments give more choice and control. Whether one can be used towards live-in care depends on the care plan and on the council agreeing that it meets your loved one’s needs, so raise it early.
Paying more than the personal budget
Councils set personal budgets at what they believe the care should cost. If you want care that costs more, you may be able to pay the difference yourself. Rules on these “top-ups” are clearest for care homes; for care at home, ask your council how it works locally.
People who pay the full cost themselves can still ask the council to assess their needs, and can ask it to arrange care at home for them, although councils may charge a fee for arranging it.
If you disagree with the council
Use the council’s complaints process first. If you are still unhappy, you can go to the Local Government and Social Care Ombudsman, which is free.
Official guidance
- Apply for a needs assessment (GOV.UK)
- Find your local council (GOV.UK)
- Social care charging 2026 to 2027 (GOV.UK)
- Care and support statutory guidance (GOV.UK)
- Local Government and Social Care Ombudsman
- Paying for care (Age UK)
Last checked 31 October 2026. This guide is general information for England, not financial or legal advice. Medicare People is not a financial adviser. Rules and rates change, so always check the official guidance or speak to an independent, regulated adviser.
Other ways to pay for care
Council funding: your questions
Will the council pay for live-in care?
It may contribute if your loved one has eligible care needs and their capital is below £23,250. The amount depends on the financial assessment and the personal budget the council sets, which reflects what it would cost the council to meet the assessed needs. If live-in care costs more than the personal budget, the family may be able to top up the difference. Using a direct payment for live-in care depends on the care plan the council agrees.
What are the capital limits for 2026 to 2027?
The upper capital limit is £23,250 and the lower capital limit is £14,250, unchanged from previous years. Above the upper limit, your loved one usually pays for their own care. Between the two limits, the council assumes a 'tariff income' of £1 a week for every £250 above the lower limit. Below the lower limit, capital isn't counted, although income such as pensions still is. These limits apply in England.
Is the house counted if care is at home?
No. When someone receives care in their own home, the value of that home is not counted in the council's financial assessment. Only other savings, investments and income are considered. This is one of the main financial differences between care at home and moving into a care home, where the home can be counted after the first 12 weeks unless a partner or qualifying relative still lives there.
What is a direct payment?
A direct payment is money from the council, paid instead of council-arranged services, that your loved one or a family member uses to arrange the care in the agreed care plan. It gives more choice and control over who provides care and when. The council will ask you to keep records of how the money is spent. Whether a direct payment can be used for live-in care depends on the care plan and what the council agrees will meet your loved one's needs.
Do we have to wait for the council before starting care?
No. Many families arrange live-in care privately while the council's assessments take place, which can take several weeks. If the council later agrees to contribute, it usually does so from the date of its decision. Our live-in care has no long contracts, so you can adjust the arrangement once you know what funding is available. Keep copies of assessments and letters, as they help if you need to ask for a review.
Who do we contact?
Contact your loved one's local council adult social care team, which is the council where they live, not where you live. You can find the right council on GOV.UK by entering their postcode. Ask for a care needs assessment, a financial assessment and, if you're a family carer, a carer's assessment for yourself. You can ask by phone, online or in writing, and someone else can make the request on your loved one's behalf with their agreement.
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