Choosing live-in care is a big decision, and understanding your funding options is just as important. At Ella’s Homecare, we want to ensure you have clear, up-to-date guidance on what financial support may be available.

 

Changes to Local Authority Support

Currently, according to the NHS, “you will not be entitled to help with the cost of care from your local council if you have savings worth more than £23,250 – this is called the upper capital limit, or UCL.”

However, starting in October 2023, this limit will rise to £100,000.

 

Additionally, a new £86,000 cap on personal care is being introduced, meaning no one should have to pay more than this amount for eligible personal care costs during their lifetime. Please note: this cap does not include daily living costs (DLCS), such as food, accommodation, or utility bills.

More information can be found here.

 

Local Authority Direct Payments

If you're assessed as eligible for support, your local council may offer you a personal budget, which can be:

 

Managed by the council itself

 

Paid directly to a care organisation like Ella's Homecare

 

Paid directly to you or someone you nominate (known as a direct payment)

 

With direct payments, you remain in control — choosing your care provider, setting up your care package, and ensuring it's right for your needs.

Local authorities will carry out a financial assessment to determine your level of funding. It’s important to start this process early to avoid delays.

 

Equity Release Options

If you are not eligible for full local authority support, there are other ways to help fund live-in care, such as releasing money tied up in your home.

 

Home Reversion Plans

As explained by  moneyhelper.org.uk, , a home reversion plan allows you to sell part or all of your property in exchange for a lump sum or regular income, while continuing to live in it.

This can help cover the cost of long-term care, but it’s important to carefully consider the pros and cons and to speak with an experienced solicitor or financial advisor before proceeding.

 

Lifetime Mortgages

Another form of equity release is a lifetime mortgage, where you borrow money secured against your home. The loan is typically repaid when your home is sold, usually when you move permanently into care or pass away.

 

There are two main types:

 

Interest roll-up mortgage: No monthly payments; interest is added to the loan and repaid at the end.

 

Interest-paying mortgage: You pay some or all of the interest over time, reducing the final repayment amount.

 

For full guidance on equity release, visit MoneyHelper Equity Release.

 

NHS  continuing healthcare funding   (CHC)

For individuals with ongoing, complex medical conditions, NHS Continuing Healthcare (CHC) may be available. If you qualify, the NHS fully funds your care package, including live-in care, either permanently or for a limited time.

 

You can apply for CHC through your local Clinical Commissioning Group (CCG) or by speaking to your GP. They will guide you through an initial screening and, if appropriate, a full assessment to determine eligibility.

 

More information on CHC funding is available via your local NHS service or GP.