How to Fund Home Care: A Simple Guide for Hampshire Families
When a family starts thinking about home care, one of the first questions is nearly always the same: how will we pay for it? The good news is that there is more help available than most people realise. Between council funding, NHS support and benefits that many families never claim, you may not need to cover the full cost yourself.
At Lillyfields Care, we talk families through this every week. This guide walks you through the main funding routes in plain English, so you can approach the conversation feeling informed rather than overwhelmed.
Start with a care needs assessment, it costs nothing
Before any money changes hands, your local council will carry out a free care needs assessment. Anyone can request one, and it is the gateway to almost every type of public funding. The assessor looks at what day-to-day support your loved one needs, from help with washing and dressing to preparing meals and staying safe at home.
Even if you think your family will end up paying privately, it is well worth having the assessment. It puts your loved one's needs on record, and it opens the door to funding if circumstances change later. If you would like to know what happens on the day, we have written a separate guide on what to expect from a care needs assessment.
The means test: what the council will and will not count
If the assessment shows your loved one needs support, the council carries out a financial assessment, often called a means test. For the current year, the key figure in England is £23,250.
Here is how it works in simple terms. If your loved one has savings and capital above £23,250, they will usually pay for their own care. Between £14,250 and £23,250, the council contributes and your loved one pays a share. Below £14,250, savings are ignored altogether, although income such as a pension is still taken into account.
There is one piece of news that reassures many families: when care is provided at home, the value of the house is not counted in the means test as long as your loved one still lives there. For families choosing between home care and a care home, this can make a real difference. It means staying in a much-loved home is often more affordable than people first assume.
Direct payments: funding with freedom to choose
If the council agrees to fund some or all of your loved one's care, you do not have to accept whichever provider the council suggests. Direct payments let the council pay the money to you or your loved one instead, so you can choose the care provider that feels right for your family.
For many people this is the best of both worlds. You get the financial support, and you keep control over who comes into the home, how visits are arranged and how care is shaped around your loved one's routines. If you would like to use direct payments with a local, family-run provider, simply mention it during your financial assessment and ask for it to be set up.
NHS funding: continuing healthcare and nursing support
Some people qualify for NHS continuing healthcare, a package that is arranged and paid for entirely by the NHS. It is not means-tested, so savings and property make no difference. It applies where someone's needs are primarily health needs, for example complex conditions that require ongoing clinical care.
Eligibility is decided through an assessment process, starting with a checklist completed by a nurse or other health professional. Not everyone qualifies, but if your loved one has significant health needs it is always worth asking their GP, district nurse or hospital team for a checklist assessment. If your loved one is awarded continuing healthcare, it can cover the full cost of care at home, including live-in care.
Benefits worth claiming: Attendance Allowance and more
Attendance Allowance is one of the most underclaimed benefits in the country, and it exists precisely to help older people who need support at home. It is not means-tested, it is tax-free, and from April 2026 it pays £76.70 a week at the lower rate or £114.60 a week at the higher rate. That is up to almost £6,000 a year towards care, simply for having care needs, and your loved one does not need to spend it on anything in particular.
If your loved one is over State Pension age and needs help or supervision during the day or night, encourage them to apply. Age UK and Citizens Advice can help with the form, and a successful claim can also unlock extra Pension Credit or a Council Tax reduction. Carers may also be able to claim Carer's Allowance if they provide 35 hours or more of care a week.
You do not have to work this out alone
Funding care can feel like a maze, but every route above starts with a simple step: a phone call, a free assessment or a benefit application. Thousands of Hampshire families successfully arrange funded or part-funded care every year, and yours can too.
At Lillyfields Care we are an independent, family-run home care provider based in Petersfield, rated Good by the CQC, and we look after our clients how we'd expect our own family to be looked after. Whether you are exploring visiting home care or live-in care, we are happy to talk through your options, explain what funding might apply and point you towards the right people, with no pressure and no jargon.
Call us on 01730 233133 or email care@lillyfieldscare.com for a friendly chat about the right care and funding for your family.
Sources used for figures: GOV.UK social care charging circular 2025-26 (capital limits), DWP benefit rates 2026/27 (Attendance Allowance), NHS.uk (continuing healthcare). Figures correct as of July 2026 and apply to England.