Financing care at home in the UK usually means combining family planning, government benefits, and personal savings — often in that order. These ten steps walk you through managing money sensitively, claiming what you are entitled to, and building a realistic long-term plan.
One of the biggest concerns for many families is how to pay for care in the UK. The advice in this article can help you:
- Pay for a professional carer
- Financially support a non-professional carer (a family member) while they are caring
- Cover day-to-day expenses for your loved one and anyone caring for them
My own experience of caring for and managing finances for both my dad and my mum left me wishing I had known these steps earlier. I spent a lot of time researching options — here is everything I learned.
How and when you move forward depends on how independent your loved one is, their attitude to being helped, and how the rest of the family feels. If they are still very independent, you may only need to offer advice. If they are starting to struggle with financial matters, you may need to be more practically involved. With almost everything in this article, the sooner you act — or at least familiarise yourself with it — the better.
Steps 1–7 apply in almost all cases and are worth doing as soon as you can. Steps 8 and 9 list funding sources that may be available. Step 10 brings everything together into a plan.
If you are setting up reminder or check-in services as part of home care, see our guide to public funding for CareCalls or use the funding checker.
1. Directly address any tensions or reservations
When it comes to caring for someone, finances can be sensitive. There may be trust issues from the person being cared for or other family members. Managing our own money is a big part of independence, so losing that ability can be very difficult for your loved one. From now on, make sure to:
- Understand existing plans and expectations. Before you start, find out whether your loved one or other family members already have a plan. If so, make sure everyone understands it so you can help deliver and improve it if needed.
- Explain the need for a plan and your involvement. If no sufficient plan exists, make sure everyone understands the benefits of planning and what can go wrong if finances are not managed well.
- Be transparent, keep a record, and keep everyone updated. Your loved one and family should be able to view transactions and important decisions at all times.
2. Build a full picture of income, savings, and spending
Talk with your loved one and try to get a complete picture of their financial circumstances. Ask if you may look at bank statements and recent correspondence. Try to find out:
Debts: credit cards, mortgage, loans, finance agreements, overdrafts
Bank accounts: debit, credit, savings
Income: pensions, employment, tenants, royalties, dividends
Savings and investments: ISAs, bonds, stocks and shares
Property and assets: what they own and approximate values (a free property valuation early on can help)
Regular monthly costs: council tax, water, internet, electricity, subscriptions, food, insurance (car, home, personal), car and travel
Use the spreadsheet template at the bottom of this article to record your findings and estimate monthly and future costs.
3. Apply for Power of Attorney
A Lasting Power of Attorney (LPA) lets you act on your loved one’s behalf for certain financial decisions. This becomes especially important if they lose the ability to communicate or travel.
Apply as soon as you can — it can take several months to come through. If their health deteriorates quickly without an LPA in place, managing finances becomes much harder.
The relevant type here is Property and financial affairs. You should also apply for Health and welfare at the same time (for decisions about ongoing medical treatment).
4. Make sure a will is in place
This may sound abrupt, but it matters for decisions made before someone passes away. Depending on how care is funded, the estate may have debts (such as equity release) where accessing assets after death is important. Without an up-to-date will, everything becomes more complicated for your family at an already difficult time.
Explore will-writing options — from DIY to affordable solicitor services.
5. Arrange access to the relevant accounts when needed
This is delicate and you may need to return to it later, depending on how independent your loved one is now. Only use or access someone’s bank cards and accounts with their explicit permission and full transparency.
You will likely reach a point where you need to make day-to-day purchases and handle financial tasks on their behalf — talk about this ahead of time. You may also need to help release funds from other sources. An LPA is vital for this; in the meantime, your loved one may be able to give spoken permission for some actions.
6. Cut unnecessary costs
With an older relative, there may be costs that are no longer needed, forgotten, or from a provider that is not offering the best deal. Examples include an extra car, inefficient appliances, forgotten subscriptions, credit card interest, or buying too much food and throwing it away.
Review bank transactions to spot these costs, then cancel, reduce, or switch to a better deal.
7. Get an assessment from your local authority
This is important for both financial and practical reasons. Your local authority can assess your loved one’s health and finances. The assessment can identify specialist equipment or home adaptations for mobility and other needs. It also shows whether they meet financial criteria for state-subsidised care visits (covered in step 8).
8. Explore national and local authority funding
Make sure you and your loved one are receiving all national and local financial support you are entitled to.
Carer’s Allowance (non-professional carers only)
For anyone caring for someone at least 35 hours a week who earns below a weekly limit. Only relevant if you or another family member is the carer.
Attendance Allowance or PIP
For the person being cared for, to help with living costs. If someone has a carer, they will very likely be eligible for one or the other.
Attendance Allowance (GOV.UK) · Personal Independence Payment (GOV.UK)
Universal Credit (non-professional carers only)
Provides financial support if you are between jobs or unable to work. Caring can greatly reduce your ability to work, so this is worth exploring.
Local authority subsidised care
Available to anyone with savings below a certain threshold. Rather than cash, your council may subsidise professional carers visiting at regular intervals.
Demand varies by area and public-sector care can involve waiting times. We still recommend exploring this option if eligible and making an informed decision. Contact your local adult social services to apply — the process differs by county.
Council Tax reduction
If the carer lives with the person they care for, they may be entitled to a council tax reduction. Check with your local council.
VAT relief for disabilities or long-term conditions
People with disabilities or a long-term illness may qualify for VAT relief (20% off) on products or services that help them manage their condition at home. Ask suppliers when purchasing relevant equipment.
Carer’s Credit (non-professional carers only)
Helps with gaps in National Insurance contributions while you are caring.
Pension Credit (non-professional carers only)
Helps if you are over State Pension age and on a low income. Can also help with ground rent or service charges.
Some assistive technology and reminder services may also qualify for public funding — see what public funding options are available for CareCalls specifically.
9. Understand self-funding options
I am not a qualified financial adviser. This section lists options to investigate further. For each source, consider:
- How much is needed?
- Is the source growing, shrinking, or static? (Rising share values might be a last resort; equity release can work well but charges interest.)
- Has tax already been paid? Will tax be due?
- How quickly can it be accessed? How far ahead must you start?
Income and pensions: tenants, royalties, dividends
Savings and investments: ISAs, bonds, stocks and shares
Assets: selling extra cars or valuables; equity release (a loan against home value, usually repaid when the home is sold); downsizing to a smaller property
10. Plan ahead
Once you understand the financial situation and have done everything possible for now, plan ahead.
Use your records from step 2 to estimate how much care and day-to-day life will cost month by month, and how long the current arrangement can last before a new approach is needed.
For example, we supported my mum and dad for a while with savings and public funding, but eventually needed equity release on their property. We knew when to start that process because we had a plan.
Planning tools
A spreadsheet helps you see everything in one place and test ideas quickly.
Download the care finance spreadsheet template
When should you seek personalised advice?
Depending on how complex the situation is, professional advice may be worth paying for — especially if:
- Your loved one has no income, savings, or assets
- Your loved one has a large or complex estate
- Your loved one does not have UK citizenship
- Your loved one has problems with gambling or struggles to manage money
Further reading
- 11 tips for first-time carers — practical advice for new family carers, including financial support
- 6 essential characteristics to look for when finding a carer — choosing professional care at home
- What public funding options are available? — funding for reminder and check-in services