Funding the Cost of Home Care

There are a number of ways to fund you care costs. Lets show you how - 10 min read

People often have to make quick and difficult decisions about their own or a loved one’s care needs. Some forward planning and thinking about about the options will give peace of mind. 

There are a few routes to funding set out below:

1. Local authority funding for long-term care

Your local council may be able to help you with the cost ot care to stay in your own home by providing funding for carers,  equipment and specialist services.

Exactly how much funding you receive will depend on:

  • Your individual needs (based on a care needs assessment)

  • How much you can afford to pay towards the costs of care yourself. This is based on a financial assessment. If you have savings of over £23,250 (2019/2020) you may not be eligible for funding. This link will take you to Leicestershire Country Council's website where you can read about the financial assessment for care at home  home

Your local authority or trust can arrange care services for you or you can choose to receive direct payments and organise things yourself.

2. NHS Continuing health care funding

Where a person’s primary need is a ‘health need’, the NHS is regarded as responsible for providing for and fully funding all their needs in any setting; this could be in your own home.  

The NHS can arrange care for you or you can choose to receive funding for your care as a direct payment, known as a personal health care budget

A personal health budget gives you more choice and control over how you plan and pay for your healthcare and wellbeing needs.

Who is eligible?

Speak to your GP or social worker to arrange an assessment.

There’s no definitive list of health conditions or illnesses that qualify for this funding. 

Most people with long-term care needs don’t qualify for NHS continuing healthcare or NHS continuing care because the assessment is quite strict and you must have long term complex healt care needs. 

Free healthcare could save you thousands of pounds and if you are eligible, this is rightfully yours to claim.  Requesting an assessment will help you know where you stand. 

What are eligible health needs?

The assessment will consider the following needs health care needs

  • breathing

  • nutrition (food and drink)

  • continence

  • skin (including wounds and ulcers)

  • mobility

  • communication

  • psychological and emotional needs

  • cognition (understanding)

  • behaviour

  • drug therapies and medication

  • altered states of consciousness

  • other significant care needs

These needs are categorised as "priority", "severe", "high", "moderate", "low" or "no needs".

If you have at least one priority need, or severe needs in at least 2 areas, you could be eligible for this funding. 

What costs are covered?

The NHS funding will cover personal care and healthcare costs, such as paying for specialist therapy or help with bathing or dressing.

It might also include support for carers if you’re receiving home home.

Funding varies by region and is organised your local Clinical Commissioning Group ('CCG') Oadby, Wigston and Harborough is covered by East Leicestershire and Rutland CCG. See map below.

The assessment should take into account your views and the views of any carers you have. You should be given a copy of the decision documents, along with clear reasons for the decision.

You can download a blank copy of the NHS continuing healthcare decision tool support tool below:-

3. Benefits

Financial support is available to live safely and comfortably in your own home

The amount you pay towards your long-term care is worked out as if you’re already receiving all the benefits you’re entitled to.

So it’s important to claim everything you can, otherwise you’ll end up paying more than you need to.

Will your savings affect your benefits?

Disability benefits that help with personal care needs or the extra costs of getting around don’t take your income or savings into account. 

4. Personal Independence Payment

If you have difficulty getting around or doing everyday tasks, you can make a claim for Personal Independence Payment (PIP).

This benefit is replacing Disability Living Allowance for people aged 16 to 64.

PIP is tax free, paid every four weeks, and not affected by your income or savings.

There are two parts to PIP:

  • A mobility component (Some people call it mobility allowance), which is paid if you need help getting around.

  • A daily living component which is paid if you need personal care.

There are two rates for each payment..  Which one you get will depend on how severe your needs are.


5. Disability Living Allowance

You can now only make a new claim for Disability Living Allowance (DLA) if you’re claiming for a child under 16. This is because DLA is being replaced by Personal Independence Payment for people aged 16 to 64.

DLA is tax free, paid weekly and not affected by your income or savings.

There are two parts to DLA called components:

  • The DLA care component helps with the extra costs of personal care – it is paid at one of three rates

  • The DLA mobility component helps with the extra costs of getting around – it is paid at one of two rates

It is possible to get either or both components.

If you are aged between 16 and 64 and are currently getting DLA, you’ll be invited to be reassessed for Personal Independence Payment a few months before your current DLA award is due to end or if your condition changes.

To find out more about DLA on the

6. Attendance Allowance

Attendance Allowance is tax free and is not affected by any savings or income you might have.

You might be entitled to it if:

  • You’re aged 65 or over and need help with personal care because of illness or disability (this could be a physical or mental disability or a learning difficulty).

  • Your disability means you need help caring for yourself or supervision to ensure the safety of yourself or others.

You must have been in need of care and support for at least six months.

Attendance Allowance is based on the care you need, not the level of care you’re currently receiving.

So even if you don’t receive support from a carer at the moment, you might still be entitled to this benefit.

If you are terminally ill you can claim Attendance Allowance immediately and not have to wait six months.

You’ll get a lower rate if you need help in the day or night and a higher rate if you need help both day and night.

7. Council Tax discounts and exemptions

 Find out more about Attendance Allowance, on the GOV.UK website.

You might receive a reduction on your Council Tax bill if you’re getting certain benefits.

If you get either the daily living or mobility component of Personal Independence Payment (PIP), you could get money off your Council Tax bill.

The discount you’ll get depends on the rate and components of PIP you’re getting – your local council will be able to tell you exactly how much you need to pay.

To claim your Council Tax discount,contact your local council office and tell them you’re getting PIP. You may need to send them a copy of your PIP award letter.

If your home has been specially extended to help you stay there, you should not have to pay any extra Council Tax.

If you move permanently into a care home and your previous home is no longer occupied, you are exempt from Council Tax.

To find out more, read Council Tax discounts for disabled people’ on GOV.UK.


To have a chat about all your care needs in Oadby, Wigston, Market Harborough, Kibworth, Fleckney and the surrounding villages of Harborough,  please contact

us on 0116 271 8222 or email

Our friendly office team are here to listen to you. 

How to find the right care for you or your relative

1. Find your local office

Bluebird Care delivers care from locally based offices, find yours to start your care journey today.

2. Get in touch with us

Fill in our call back form or give us a call to find out how we can help you.

3. Assessment

We’ll come out to you to find out what you or your loved one needs to help stay independent at home.

4. Care team chosen & care starts

You'll be cared for by our specially trained team to support you to remain at home for as long as possible.

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