Home care services are an alternative to care homes. The carer will visit you in your own home and provide the support that you need to be able to continue to live at home. Depending on your needs and how much support you need this can be a few hours a week, a few hours a day or full time 24/7 live in home care.
The cost of care at home or in a care home is significant and it is important that this is explored by the individual or family that are considering care. There are a number of different options for paying for home care services.
How much does home care cost per hour in the UK?
A typical hourly rate for home care in the UK in 2024 is £20 according to the NHS website. If you need a full time carer the costs will range between £800 and £1600 a week depending on the level of help you require.
The cost of in home care varies according to the services required. For example, one person might only need help with meal preparation and companionship. Another might need help with personal care; dressing, washing, eating plus medication management and supervision if they have a tendency to wander.
There is also a regional variation of home care costs. Residents in larger cities like London and Birmingham or affluent areas may pay more for home care than a city in a regional location like Manchester where home care may be less costly.
Paying for home care services
Self funding home care
Home care services can be paid by the service user. This is called self-funding. If you have savings that are above the upper capital limit (UCL), which is currently £23,250 at the time of writing, you will need to pay for your own home care.
Top tip: You do not have to sell your home to pay for in home care. You may have to sell your home to pay for a care home.
Local Authority funding
Provided you do not have savings above the upper capital limit (UCL), you can apply to your local council for a financial assessment. This is a means test for social care to see if you are eligible financially to receive a payment. It is combined with a needs assessment or carer’s assessment to see how much help you require.
NHS Continuing Healthcare Funding
The NHS provides Continuing Healthcare Funding to people who qualify for it. They can have complex health needs that have arisen from an accident or illness. To benefit from funding you need to be assessed by a multidisciplinary team (MDT) of healthcare professionals. They will review the complexity, intensity and predictability of needs.
Personal Independence Payment (PIP)
The Personal Independence Payment replaced the Disability Living Allowance. It is for people who have a long term disability, either physical or mental, and those who have difficulty with everyday tasks and mobility. There are two parts to PIP, daily living and mobility. The Department for Work and Pensions (DWP) does the assessment for both parts. Your carer can also qualify for Carer’s Allowance if you have ‘substantial needs’.
Attendance Allowance
Attendance Allowance is paid if you have a severe disability and you need someone to look after you. It is paid in two rates for physical or mental disability and for age (you must be of state pension age or older). It does not cover mobility needs. Extra Pension Credit, Housing Benefit and Council Tax Reductions can be claimed if you get Attendance Allowance.
The UK Government also ensures a Minimum Income Guarantee for people who are still living at home (not in a care home), so that they have sufficient income after care costs to enable them to live.
If you qualify for these benefits, you can use your PIP or Attendance Allowance payments to pay for home care services.
Long term planning
Alternatively, you may need to self fund your home care if you do not qualify for any funding. If you need to be self-funding, talk to an independent financial expert. There are many free money advice services in the UK.
In some cases, the requirement for home care is unexpected as when an accident happens or a diagnosis is given. In other cases, it is expected. For example, a child with a learning disability with complex needs will grow into an adult who wants independent living support. And everyone will grow older and more frail over time.
Long term planning can help to plan the cost of home care when it is expected. Always seek the help of an independent financial planner who can help you to assess your current and future needs and make the most of your savings and assets.
Does home care cost less than a care home?
On average a care home costs less than home care. A care home costs on average between £600 and £800 a week. A full time carer costs between £800 and £1600 a week. But not everyone needs a full time carer. And the costs depend on the service provider, the region you live in and the level of care required.
The other consideration is that home care means that you can stay in your own home rather than having to move into an unfamiliar environment.
Paying for home care
Paying for home care does not necessarily mean that you will have to pay for care yourself as there are benefits and funding available to help those who need help at home. These include Personal Independence Payments, Attendance Allowance, Continuing Healthcare Funding and Local Authority support. These benefits can help offset the costs of home care services.
The costs of home care vary depending on your needs, where you live in the UK and what the service provider charges. These costs need to be factored into any decision about whether to move into a care home or use home care. They are also part of long term financial planning.