Paying for Care at Home in England: Your Options in 2026/27

When a parent starts to need help at home, the first question is usually what they need. The second, almost straight away, is who pays. In England the answer is often a mix: some council support, some benefits, and some care the family pays for privately. This guide walks through each route in the order most families meet them.

Please note: funding rules, limits and rates change, and every council works a little differently. This is general information, not financial or legal advice, and we are not financial or legal advisers. Check gov.uk or your council’s website, or get free advice for your situation from Age UK or Citizens Advice.

Step 1: Ask for a needs assessment

A needs assessment is the starting point for any council help. It is free, and anyone who seems to need care and support can ask for one, whatever their savings. You contact the adult social services team at your parent’s local council (for London, that is the borough council where your parent lives).

Someone from the council will talk to your parent, and ideally to you, about daily life: washing, dressing, eating, getting around and staying safe.

Before the assessment, it helps to write down what a typical day really looks like. Our guides to the signs your parent needs help at home and how many hours of care they actually need can help you prepare.

Step 2: The financial assessment

If your parent has eligible needs, the council will then look at their finances to decide how much, if anything, they should pay towards their care.

Capital limits for 2026/27

The capital limits in England for 2026/27 are unchanged:

Your parent’s capital	What it usually means
Over £23,250	They are likely to pay the full cost of their care themselves
Between £14,250 and £23,250	They contribute from their capital and income, and the council may pay the rest
Under £14,250	Capital is ignored, but they may still contribute from income

For care at home, the value of the home your parent lives in is not counted as capital.

Income and the minimum income guarantee

Councils also look at income, such as pensions and some benefits. For care at home, they must leave your parent with at least a set amount to live on, called the minimum income guarantee. For a single person over Pension Credit age, that is £241.45 a week in 2026/27. Councils can be more generous, but not less.

Step 3: Direct payments

If the council agrees to fund some or all of your parent’s care, it sets a personal budget. Your parent can usually choose to have the council arrange the care, or to take the money as a direct payment, paid to them (or someone acting for them) so they can choose how it is spent on their care.

Direct payments give more choice and control, but they come with responsibilities: keeping records, showing how the money was spent and following the council’s rules.

Can direct payments be used with self-employed carers?

This depends on your council. Some councils allow direct payments to be used for self-employed carers, including those introduced through an introductory agency like Viola. Others have conditions, or prefer you to use providers on an approved list. The only reliable answer is to ask your council before you make any arrangements, and to get their answer in writing. If you are unsure how introductory agencies work, our article on introductory agencies and traditional care agencies explains the difference.

Step 4: Check for NHS Continuing Healthcare

NHS Continuing Healthcare is free health and social care arranged and funded solely by the NHS for people with long-term, complex health needs. It is not means-tested. It can be provided at home as well as in a care home.

Eligibility depends on whether your parent’s main need is a health need, not on a particular diagnosis. The threshold is high and many applications are turned down, but if your parent has complex or unpredictable health needs, ask their GP, social worker or hospital team about a checklist assessment. It is worth asking, especially after a hospital stay. Our guide to care after hospital discharge covers what happens in that period.

Step 5: Benefits that help with the cost

Attendance Allowance

Attendance Allowance is paid to people over State Pension age who need help because of a disability or health condition. In 2026/27 it is £76.70 a week (lower rate) or £114.60 a week (higher rate). It is not means-tested and can be spent on anything, including care. Our Attendance Allowance guide explains how to claim.

Bear in mind that councils may count Attendance Allowance as income in the financial assessment, so ask how your council treats it.

Carer’s Allowance for the family carer

If you, or another family member, care for your parent for at least 35 hours a week, you may be able to claim Carer’s Allowance of £86.45 a week (2026/27). You need to be 16 or over, your parent needs to get a qualifying benefit such as Attendance Allowance, and your earnings must be no more than £204 a week after tax, National Insurance and expenses.

Claiming Carer’s Allowance can affect other benefits, both yours and your parent’s, so get advice before you apply.

Step 6: Paying for care yourself

Many families end up self-funding at least part of the care, either because their parent has more than £23,250 in capital or because the council package does not cover everything. Common gaps are weekends, longer visits, company and help with practical tasks.

When you self-fund, you have full choice over who provides the help, when, and for how long. It is worth comparing the different models:

Traditional care agency: the agency employs the care workers and sets the schedule. Prices vary, and the Homecare Association’s minimum price for homecare in England in 2026/27 is £34.42 an hour.
Introductory agency: the agency introduces you to self-employed carers. You choose your carer and agree the arrangements directly with them.
Hiring privately: you find and manage someone yourself, including all the checks.

With Viola, hourly care is £20 an hour, the same rate every day including weekends and bank holidays, with travel included and no hidden fees. For a fuller breakdown, see how much home care costs in London and our prices page.

Putting it together

For example, imagine a father in Croydon with £40,000 in savings who needs a two-hour visit every morning. The council assessment confirms his needs, but because his capital is over £23,250 he pays for his own care. He claims the higher rate of Attendance Allowance, which covers almost six of his fourteen weekly hours at £20 an hour. His daughter, who also helps in the evenings, checks whether Carer’s Allowance is worth claiming. Once his savings fall below the upper limit, the council looks at his finances again.

Talk it through with us

If you are working out how much care you can afford, we are happy to help you plan a realistic schedule. Tell us about your parent’s situation or call us, and we will explain how hourly care through Viola could fit alongside any council support.

Frequently asked questions

Is a needs assessment free? Yes. Anyone who seems to need care and support can ask their council for one, whatever their finances.

What are the capital limits for 2026/27? The upper limit is £23,250 and the lower limit is £14,250 in England.

Is my parent’s home counted for care at home? No. The value of the home they live in is not counted when they receive care at home.

Can direct payments be used for self-employed carers? It depends on the council. Ask them before making any arrangements.

Is NHS Continuing Healthcare means-tested? No. If your parent qualifies, the NHS funds their care in full.