How Much Will The Local Authority Pay For A Care Home?

Cost is one of the main factors to consider when looking for a care home. It is likely that you are keen to explore whether any financial support is available to help cover your care costs.

The good news is that you may qualify for some financial help to pay for care fees providing you meet the Government's eligibility criteria.

There is approximately a 50:50 split between people self-funding their care and people who have funding support from their local authority.

What is the eligibility criteria for local authority funding?

The government's funding thresholds determine whether a person is eligible for funding from their local authority to help cover their care costs. View the current local authority funding thresholds below. We have also included information on what the funding thresholds are changing to from October 2025 as part of the social care reform.

Until October 2025

Assets over £23,250 Private Funder
Assets between £14,250 - £23,250 Part Council funded
Assets below £14,250 Fully Council funded

From October 2025

Assets over £100,000 Private Funder
Assets between £20,000 - £100,000 Part Council funded
Assets below £20,000 Fully Council funded

"I think I might be eligible for local authority funding, what steps do I need to take to find out for sure?"

Firstly, you will need to request a free Needs Assessment from your local council. This can be done online or via phone call.

The Needs Assessment involves someone from the council coming to your home to ask questions such as how you're managing day to day tasks. The results of your Needs Assessment will be available within 1 week and will identify the level of support you would benefit from.

If the Needs Assessment concludes that you need a level of care support, your local council will arrange a Financial Assessment for you. The Financial Assessment will identify your eligibility for funding support from your local council.

"How much money will the local authority contribute towards my care home fees?"

There is no generic answer to this question. Your personal budget* is based on your individual care requirements and the results from your Care Needs Assessment & Financial Assessment.

The personal budget you are provided with by the council will depend on your individual situation. This also applies if you are eligible for full council funding.

*A personal budget is the amount of money your local authority is prepared to contribute towards your care costs.

"I am eligible for full local authority funding but my first choice care home costs more than the amount I have been given. Can my family top-up the difference?"

If your preferred care home costs more than your personal budget, a relative or friend can volunteer to pay the difference. In the care industry, the difference is often referred to as a 'top-up fee'.

It is important to note that not all care homes are willing to accept a top-up fee or will only accept self-funders. We suggest that you ask the question during your initial conversation.

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