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Self Funded Care

Everything you need to know about privately funded homecare

Self-funded care

As the demand for home care services continues to rise in the UK, it is essential for individuals and their families to understand the various funding options available. Funding plays a crucial role in accessing the personalised care needed to maintain independence and well-being at home. In this informative guide, we will explore the key privately funded (self-funded) options for homecare services in the UK, empowering you to make informed decisions about your care journey.

What do you pay for self-funded homecare services?

The cost of self-funded homecare services in the UK varies depending on several factors, including the type of care required, the level of support needed, and the location. Generally, the cost of homecare services in the UK start from £23.20 per hour. Some care providers may also charge additional fees for services such as transportation, meal preparation, and medication management. It's essential to understand the costs involved and ensure that the care plan is affordable and sustainable.

It is important to note that you will not be entitled to help with the cost of care from your local council if:

you have savings worth more than £23,250 – this is called the upper capital limit, or UCL, and will rise to £100,000 from October 2025
you own your own property (this only applies if you're moving into a care home)

What do you pay for self-funded homecare services?

What are the ways to fund your self-funded homecare services?

There are several options for funding your own home care services in the UK. Let's explore some of the most common options;

Personal Savings

Using personal savings is one of the most straightforward ways to fund your own home care services. If you have sufficient savings, you can pay for your care without having to rely on external funding. This option provides you with greater control over your care plan and ensures that you can access the support you need, without any delays or restrictions.

Annuities

An annuity is a financial product that provides a regular income in exchange for a lump sum payment. Annuities can be used towards privately funded home care services and provide a reliable source of income to cover ongoing care costs. However, it's essential to consider the long-term implications of purchasing an annuity, as it may limit your access to your capital and restrict your options in the future.

Equity Release

Equity release is another option for individuals who own their home and have significant equity tied up in it. Equity release allows you to access a portion of the value of your home, either as a lump sum or in regular payments, without having to sell your property. This option can provide you with the necessary funds to pay for your care while allowing you to continue living in your home. It is important to note that this is only available if you are over the age of 55.

Care Fees Plan

A care fees plan is a type of insurance product that covers the cost of self-funded homecare services. With a care fees plan, you pay a regular premium, which provides you with a fixed sum of money that can be used to pay for your care. This option can provide peace of mind, knowing that you have a reliable source of funding for your care needs.

Combination of Funding Options

It's essential to note that you can combine multiple funding options to pay for your self-funded homecare services. For instance, you may use a combination of personal savings and equity release to fund your care. Exploring different funding options and creating a personalised plan that suits your specific needs and financial situation is key to accessing the support you need.