Care FundingGood Companions · Cumbria Talk to us
A plain-English guide

How is care paid for?

Care funding is genuinely confusing, and most families start out not knowing what they might be entitled to. Here's what exists, in plain English — so you can ask the right questions.

This is general information, not financial or legal advice. Good Companions is a care provider, not a financial adviser. Nothing here is a recommendation about your own situation. For advice about your circumstances, speak to your council, or to an independent adviser — we've listed free and independent places to go on every page.

Start here — it applies to almost everyone

Whatever your savings, these two steps come first.

Help that may be available

These don't depend on selling anything or buying a product.

Options that need independent regulated advice

We can tell you these exist and roughly how they work — but by law, advice on them must come from a qualified, FCA-regulated adviser. Not from us.

Where to get free, independent help

None of these are connected to us, and none of them sell care.

Questions about care itself?

We can't advise on your finances — but we're always happy to talk about the care side: what's available in Cumbria, what it involves, and what it costs with us. No pressure, no obligation.

Call 01228 594153 Try our Care Compass guide

The free needs assessment

The single most useful first step, whatever your savings — and it costs nothing.

What it is

Your local council has a duty under the Care Act to assess anyone who appears to need care and support. It looks at what you struggle with day to day and what help would make a difference. It is free and not means-tested — everyone can have one.

Why have one even if you'll pay yourself

  • It produces a written record of needs, useful for arranging care and for the future.
  • The council may still help arrange care, or point you to local services you didn't know about.
  • If your money later runs down, having been assessed makes the transition to council support far smoother.
  • It can flag entitlements you'd otherwise miss, including benefits and equipment.

A carer's assessment too. If you look after someone, you're entitled to your own separate assessment of your needs as a carer — including support to get a break. This is often overlooked.

How to ask for one

Contact the adult social care team at your local council. In our area that's Cumberland Council or Westmorland & Furness Council, depending on where you live. You can also start on GOV.UK, which will point you to the right council.

Good Companions can't carry out or influence a council assessment — it's independent of us, and that's exactly as it should be. We're happy to explain the process or sit alongside you for support if that helps.

Request an assessment on GOV.UK

The financial assessment

Often called the means test — how the council decides whether it helps with the cost.

How it works, broadly

After the needs assessment, the council looks at your capital (savings, investments and sometimes property) and your income. Where your capital sits against the national thresholds decides whether the council contributes, and how much you pay yourself.

  • Above the upper threshold — you're expected to pay for your own care.
  • Between the upper and lower thresholds — you contribute, and the council contributes.
  • Below the lower threshold — the council meets the cost of the care it has assessed you as needing, though most of your income is still counted towards it.
The exact thresholds are set nationally and change from time to time, so we deliberately don't print figures here that could go out of date. MoneyHelper and Age UK publish the current amounts, and your council will confirm them.

Does the house count?

This is the question we're asked most, and the honest answer is: it depends. The value of your home is generally disregarded if care is being provided in your own home. For a move into a care home, it may be counted — but there are important exceptions, such as where a partner, or a relative who is elderly or disabled, still lives there. Because this varies so much with circumstances, it's a question for your council or an independent adviser rather than for us.

Care at home is treated differently from a care home. If you're weighing up staying at home against moving, the financial assessment may look quite different for each. Worth asking the council to explain both.

One thing to be careful of

You may hear suggestions about giving away savings or signing over property to reduce what you pay. Councils can and do investigate this as "deliberate deprivation of assets", and can assess you as though you still had the money. We won't advise on it — if you're considering anything of this kind, take independent legal advice first.

We can't tell you how the means test will land for you — that's for the council to assess, and for an independent adviser to advise on. What we can do is explain the care options and their cost.

Council funding

What local authority support looks like, and the choice most people don't realise they have.

A personal budget

If the council agrees to fund some or all of your care, it sets a personal budget — the amount it thinks your assessed needs should cost. You then have a genuine choice about how that's delivered.

Direct payments — worth knowing about

Instead of the council arranging care for you, it can pay the money to you (or someone acting for you) so you can arrange your own. People choose this for the control it gives: more say over who provides the care and when it happens.

  • You can usually choose your own provider, rather than whoever the council has contracted.
  • There are responsibilities attached — record-keeping, and employment duties if you employ someone directly.
  • Councils normally offer a support service to help you manage it.

Being open with you: Good Companions is a care provider, so we have a commercial interest in being chosen. Direct payments would let you choose us — but they equally let you choose someone else, and you should compare. Your council can explain how direct payments work independently of any provider.

If the council's budget doesn't stretch to your preferred option

Sometimes the personal budget won't cover a particular home or arrangement. A family member or third party may be able to pay the difference — see third-party top-ups on the self-funding page. The council should always offer at least one option that meets your assessed needs at no extra cost to you.

If your money runs out later

People who start out self-funding often become eligible for council support as savings reduce. Ask for a financial assessment before you reach the threshold, not after — it takes time to arrange, and leaving it late can cause a stressful gap.

NHS funding

Not means-tested, frequently missed, and always worth asking about.

NHS Continuing Healthcare (CHC)

If someone's needs are judged to be primarily health needs rather than social care needs, the NHS may fund their care in full — including care at home or in a care home. It doesn't depend on your savings at all.

  • It starts with a checklist screening, usually arranged by a nurse, GP or social worker.
  • If the checklist is passed, a fuller multidisciplinary assessment follows.
  • The decision is about the nature, intensity, complexity and unpredictability of needs — not about a particular diagnosis.

You can ask for a checklist. Many families don't know CHC exists, and it's rarely offered automatically. If health needs are significant, it's reasonable to ask a GP, hospital discharge team or social worker to arrange a checklist. Decisions can also be appealed.

NHS-funded Nursing Care (FNC)

If someone lives in a nursing home and needs care from a registered nurse but doesn't qualify for full CHC, the NHS may pay a contribution towards the nursing element. It's paid directly to the home.

Short-term NHS support

After a hospital stay, there may be a period of free NHS-funded reablement or intermediate care to help someone regain independence. Worth asking about at discharge, because it isn't always volunteered.

Eligibility is decided by NHS assessors, not by care providers — we have no part in it. Age UK and Citizens Advice can help you understand the process, and there are independent advocates who specialise in CHC appeals.

Benefits worth checking

Large sums go unclaimed each year simply because people don't realise they qualify.

Attendance Allowance

For people over State Pension age who need help with personal care or supervision because of illness or disability. It is not means-tested, isn't affected by savings, and you don't need to have someone actually caring for you to qualify — what matters is the help you need. Paid at two rates depending on whether you need help during the day, at night, or both.

Personal Independence Payment (PIP)

The equivalent for people under State Pension age. Also not means-tested.

Pension Credit

Tops up income for older people on lower incomes, and often acts as a gateway to other help such as Council Tax reduction and heating support. Widely under-claimed.

Carer's Allowance

For people who care for someone a substantial number of hours a week. There are earnings limits, and it can interact with other benefits, so it's worth a proper benefits check rather than guessing.

Council Tax

Reductions and exemptions exist — including a disregard where someone has a severe mental impairment such as dementia, and reductions where a property has been adapted. Ask your council.

Get a free benefits check. Age UK, Citizens Advice and MoneyHelper all offer free benefits calculators and help with forms. The forms can be long, and good help with them genuinely improves the outcome. None of these services charge, and none of them sell care.

We can point you to these, but we don't assess benefit entitlement and can't complete claims on your behalf. Rates and rules change each year — always check the current position with one of the free services above.

Paying for care yourself

What self-funding involves — and the arrangements that can make it more manageable.

Still have the assessments

Even if you're clearly going to pay yourself, have the needs assessment and ask about a financial assessment. It costs nothing, it can uncover benefits and NHS support you're entitled to regardless of savings, and it makes life far easier if funds reduce later.

Deferred Payment Agreements

If someone moves into a care home and their property is counted in the means test, a council deferred payment agreement can let the fees be paid from the property's value later — rather than having to sell the house quickly at a difficult moment. There are eligibility rules, interest and fees, so ask the council for the details in writing.

Third-party top-ups

Where a council-funded place doesn't cover a particular home or room, someone else — usually family — may pay the difference. Make sure everyone understands the commitment, because it has to be sustainable long term and fees rise over time.

Questions worth asking any provider, including us

  • What exactly is included in the fee, and what costs extra?
  • How often do fees rise, and how much notice is given?
  • What happens if my money runs down to the threshold?
  • What notice period applies if circumstances change?

Care with us, for transparency: our home care, residential and live-in options each have their own costs, and we'll always set them out in writing before you commit. Our 24-hour live-in arrangement works differently from our CQC-registered services — clients pay the carer directly, alongside a daily registered care visit. We'll explain exactly how that works so you can compare it fairly with anything else.

How to fund care from savings, a pension or property is a financial planning question. An FCA-regulated adviser — ideally one accredited by SOLLA for later-life advice — is the right person for that, not us.

Options that need regulated advice

So you know they exist — but the advice must come from someone qualified and independent.

We are not financial advisers and cannot recommend any of these. The descriptions below are general information only. Whether any of them suits you depends entirely on your circumstances — and that judgement must come from an FCA-regulated adviser.

Care fees annuities (immediate needs annuities)

An insurance policy bought with a one-off lump sum, usually when care is already needed, which then pays a guaranteed income towards care fees for the rest of the person's life. The income is tax-free under current HMRC rules when it's paid directly to a registered care provider.

Points people commonly raise: the lump sum is generally not refundable unless capital protection is included; the resulting income counts in any later financial assessment; and only a small number of insurers offer them. They're medically underwritten, so cost depends on age and health.

These can only be arranged through a specialist regulated adviser — insurers won't even issue quotations to anyone without the right accreditation. Advisers need a specific qualification to advise on care fees, and SOLLA accreditation is the recognised standard for later-life advice.

Equity release / lifetime mortgages

Ways of releasing money from the value of a home while continuing to live in it. They carry long-term consequences for the estate, for benefit entitlement and for future options, so they need careful regulated advice — and usually a family conversation too.

Using investments, pensions or savings

How to draw on existing assets to meet care costs sustainably is a financial planning question, with tax and inheritance implications. Again, that's adviser territory.

How to find an independent adviser

  • Use the SOLLA directory to find an accredited later-life adviser near you.
  • Check the FCA Register to confirm anyone is properly authorised.
  • Ask upfront how they're paid, and what an initial conversation costs — initial consultations are often free.
  • You are never obliged to proceed after a first meeting.

Good Companions receives no commission, referral fee or payment of any kind from any financial adviser, insurer or product provider mentioned here. We list them purely so you know where to look.

Find a SOLLA-accredited adviser