Navigating Home Care Funding in 2025: What Families Should Know

Arranging care at home for a relative is not only an emotional journey, it’s a financial one too. As care needs evolve, it’s important to understand the full range of funding options available in 2025, from self-funding to benefits and local authority support. With the right information, families can make confident decisions about care that sustain both dignity and independence.

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‍1. Self-Funding: The Most Common Route

Many people pay for care privately. Self-funding gives you the most flexibility: you choose the carers, hours, and types of support (e.g., personal care, companionship, live-in). While it is often the most straightforward in terms of control, it’s important to budget carefully. The cost of home care varies depending on location, the intensity of care, and whether it’s hourly, live-in or overnight.

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2. Local Authority Support & Financial Assessment

If your relative has limited financial resources, the local council (local authority) may help cover some of the costs. There are two key assessments to know:

• Care Needs Assessment: The council evaluates what help is needed - daily living tasks, safety, mobility, emotional wellbeing.
  
  
• Financial Assessment (Means Test): The council assesses income and assets to decide how much they will contribute toward care.
  
  

If you qualify, the local authority can fund all or part of the care costs, making home care more affordable. Following is contact information for local councils in some of the areas we serve:

• Bath and North East Somerset Council: 
  
  • Email: welfare_support@bathnes.gov.uk
  • Phone: 01225 47 72 77
    
    
• Bristol City Council:
  
  • Adult Care Referral Form
  • Phone: 0117 922 2700
    
    
• Somerset Council:
  
  • Online Form
  • Email: adults@somerset.gov.uk
    
    
• South Gloucestershire Council
  
  • Online Form
  • Email: CSODesk@southglos.gov.uk
  • Phone: 01454 868007
    
    
• Wiltshire Council:
  
  • Adult Care Form
  • Financial Assessment Form
  • Phone: 0300 456 0111
    
    
• Dorset Council:
  
  • Online Form‍
  • Phone: 01305 221016

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3. Attendance Allowance: Helping with Care Costs

Attendance Allowance is a non-means-tested benefit for people of State Pension age who need help with personal care or supervision because of a long-term health condition or disability. 

• Rates for 2025/26:
  
  
  • Lower rate: £73.90/week (for help during day or night)
    
    
  • Higher rate: £110.40/week (if care is needed day and night or for terminal illness)
    
    
• This allowance is tax-free and not means-tested, meaning your savings or income do not affect eligibility.
  
  
• You can use it however you like: it’s not required to pay a carer with it, but many families apply it toward care costs.
  
  

Note: Local authorities may count Attendance Allowance as income when carrying out a financial assessment. 

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4. Carer’s Allowance: Support for Unpaid Family Carers

If you’re providing unpaid care (for example, to a spouse or parent), you may be eligible for Carer’s Allowance, a benefit for carers. 

Key points for 2025:

• The rate is £83.30/week (2025/26)
  
  
• To claim, you must provide at least 35 hours of care per week, and your earnings (after certain deductions) must not exceed £196/week.
  
  
• If eligible, Carer’s Allowance gives you a weekly payment and also contributes toward your National Insurance record, helping with future benefits or State Pension.
  
  

5. Planning Ahead: Why Assessments Matter

• Even if you don’t initially qualify for local authority funding, having a Care Needs Assessment and Financial Assessment documented can be very useful. Needs change, so at a later date, more support may become available.
  
  
• These assessments also help you understand what type of care is truly needed, which guides your decisions (e.g., fewer visits, daily help, or live-in).
  
  

6. Getting Help and Advice

Navigating care funding can be complex. Here are some trusted resources:

• Carers UK — for guidance on Carer’s Allowance, rights, and support.
  
  
• GOV.UK — for Attendance Allowance eligibility and application.
  
  
• Local authority websites — to find out how to apply for a Care Needs Assessment and Financial Assessment.
  
  
• Independent financial advisers — some specialise in care funding, equity release, and future planning.
  
  

7. How Gladys Can Help

At Gladys, we understand these conversations can feel daunting. We support families by:

• Explaining different funding options in clear, plain language
  
  
• Helping you plan care that fits both your budget and your loved one’s needs
  
  
• Working with self-employed carers to offer flexible, cost-effective home care solutions
  
  

Funding home care doesn’t have to be a guessing game. Whether you’re self-funding, applying for Attendance Allowance, or seeking council support, exploring your options now can give you more control and peace of mind. With the right plan, you can secure care that’s dignified, compassionate, and financially sustainable.