Understanding who is responsible for paying for long-term care can be difficult. The answer depends on the person’s care needs, finances, living arrangements and whether their needs are primarily related to health or social care.
There are four main ways long-term care may be funded in England. The figures below apply to the 2026/27 financial year and may change in future. Rules and thresholds differ elsewhere in the UK.
Self-Funding Your Care
If you have more than £23,250 in eligible savings and assets, you will normally be expected to pay the full cost of your care in a care home.
When your capital begins to approach the £23,250 upper limit, contact your local authority and request a financial assessment. Do not wait until your savings have fallen below the threshold, as arranging an assessment and support can take time.
For care received in your own home, local authorities have some discretion to apply a more generous capital limit. Your home is not normally included as an asset when you continue to live there.
Local Authority Social Care Funding
You may receive financial support from your local authority if a needs assessment confirms that you have eligible care and support needs and your financial assessment shows that you qualify.
For 2026/27:
• If you have more than £23,250, you will normally pay the full cost of care in a care home.
• If you have between £14,250 and £23,250, the council may contribute, but you will pay from your income and an assumed tariff income of £1 per week for every £250, or part of £250, above £14,250.
• If you have less than £14,250, your capital is disregarded, although you may still contribute from your income.
People receiving council-funded care must be left with a protected amount for their personal expenses or everyday living costs. The precise calculation will depend on whether care is provided at home or in a care home.
NHS-Funded Nursing Care
NHS-funded nursing care may be available when someone needs care from a registered nurse and lives in a nursing home, but does not qualify for full NHS Continuing Healthcare.
The NHS pays a weekly contribution directly to the nursing home towards the cost of registered nursing care. From 1 April 2026, the standard rate in England is £267.68 per week. A higher rate of £368.24 applies to a limited number of people who qualified under earlier arrangements.
This payment does not necessarily mean the remainder of the care-home fees will be paid by the local authority. How the remaining cost is covered will depend on the resident’s financial circumstances and the terms of the care-home contract.
NHS Continuing Healthcare Funding
NHS Continuing Healthcare, commonly known as CHC, is a package of ongoing care arranged and paid for entirely by the NHS.
To qualify, an adult must be assessed as having a primary health need. Eligibility is based on the nature, intensity, complexity and unpredictability of their needs, rather than a particular diagnosis, age or financial position.
CHC is not means-tested. When someone qualifies, the NHS pays for the assessed care and support they require. This can be provided in a care home or in their own home and may include accommodation costs when care is delivered in a care home.
The assessment usually involves:
1. An initial screening using the CHC Checklist
2. A full multidisciplinary assessment using the Decision Support Tool if the checklist is positive
A positive checklist does not automatically mean CHC will be awarded, but it should lead to a full assessment of eligibility.
What Is a Deferred Payment Agreement?
A deferred payment agreement is an arrangement with the local authority that can allow someone to delay paying some of their care-home costs.
The council pays an agreed amount towards the fees and secures the debt against the property, usually by placing a legal charge on it. The amount owed is then repaid later, commonly when the property is sold or after the person dies. Interest and administration charges may apply.
A deferred payment agreement can mean the property does not need to be sold immediately. However, eligibility criteria and terms apply, and each local authority should provide details of its scheme.
Which Type of Funding Applies to You?
The dividing line between health and social care funding is not always easy to understand. Two people living in similar settings may have completely different funding arrangements because their needs and financial circumstances differ.
Before agreeing to pay substantial care fees, make sure you understand:
• Whether a care-needs assessment has been completed
• Whether a financial assessment is required
• Whether NHS Continuing Healthcare has been considered
• Whether NHS-funded nursing care may apply
• How your income, savings and property will be treated
Get Help Understanding Your Options
Safeguarding Futures can help you understand the care-funding system, what questions to ask and where to seek additional support.
This article provides general information rather than legal or financial advice. Funding rules, rates and thresholds can change, and different arrangements apply in Wales, Scotland and Northern Ireland.
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