Helping People Navigate Social Care Funding: What Providers Need to Know
Navigating how to pay for adult social care in the UK can be a complex and often overwhelming process. As care providers, understanding how individuals fund their care is key to supporting informed choices, eligibility, care planning and service delivery. England, Scotland, Wales, and Northern Ireland each have their own systems, with different thresholds, caps, and types of support.
Understanding the difference between NHS versus self-funded care is crucial. NHS care covers medical needs and is free at the point of delivery, whereas adult social care generally requires payment or contributions from you or your local council.
In this post, our team at ClouDoc breaks down how paying for adult social care in the UK works and explains the current options available for financing care, including local authority care, self-funded social care, and key considerations around care home costs.
Social care costs in England
In England, adult social care funding is means-tested under the Care Act 2014. Service users’ financial situations determine how much, if anything, they will contribute to their care costs:
- If their savings or assets exceed £23,250, they are required to pay the full cost of their care without any local authority care support.
- If their assets fall below £14,250, they won’t need to use their savings at all, although they may still contribute from their regular income.
- For savings between these two amounts (£14,250 to £23,250), they will contribute an additional £1 per week for every £250 of savings above £14,250.
When it comes to exploring care home payment options, it’s also important to know how people’s properties are assessed. For domiciliary care (care at home) or supported living services, the value of a service user’s main home is not counted as part of their assets.
However, the rules change when it comes to residential care homes. In most cases, the value of a service user’s home will be considered as capital after the first 12 weeks of care. This means they may need to use the value of their property to contribute towards their care fees, unless certain close family members, such as a spouse or a dependent relative, continue to live there.
To ease some of this financial pressure, some people are eligible for a Deferred Payment Agreement (DPA). This arrangement allows people to delay paying care home fees until a later date, usually when their home has been sold. Additionally, they’ll always retain a certain amount of money, known as the Personal Expenses Allowance (PEA); this is currently set at £30.65 per week in England as of April 2025.
Recent updates in England
In 2021, the government proposed new social care reforms that would introduce a cap of £86,000 on social care costs while also raising the means-test limits. The upper threshold was set to rise from £23,250 to £100,000, and the lower limit from £14,250 to £20,000.
These reforms were set to be implemented in October 2023 but were then delayed to October 2025 due to concerns over funding. Then, in July 2024, these reforms were cancelled altogether to reduce national costs. As a result, the original system of no cap on lifetime costs and the original means-testing thresholds remains in place for the foreseeable future.
Paying for social care in Northern Ireland
The process around paying for social care in Northern Ireland is very similar to England. First, people will have a needs assessment to identify the level and type of care they require. Then, their local Health and Social Care (HSC) Trust will conduct a financial assessment, looking at their income and capital. If they have savings or assets over £23,250, they are expected to cover all care costs themselves. If their savings are below £14,250, the Trust steps in and covers the care. If they have between £14,250 and £23,250 in capital, they will pay an extra £1 a week for every £250 they have saved.
The Personal Expenses Allowance (PEA) in Northern Ireland is slightly higher than in England at £34.10 a week. Similarly, over 65s may also receive up to £5.75 a week in savings credit.
For people moving into residential care, like in England, the value of their home is not counted immediately in the financial assessment. It’s usually disregarded for the first 12 weeks, giving people time to consider their options
If a local Trust cannot offer a suitable placement that meets the assessed needs of a service user within their local area, they are required to increase their contribution, even if the home exceeds their usual rate. Similarly, for those in a nursing home with clinical nursing needs, the local Trust will usually contribute an additional £100 per week to help cover the cost of nursing care.
Paying for social care in Scotland
Scotland offers a different approach to adult social care compared to the rest of the UK. Since 2002, personal care has been free for everyone over 65, and since 2019, it’s free for all adults who are assessed as needing it, regardless of age, income, or savings. This includes tasks like help with washing, dressing, eating, and going to the toilet.
For people receiving domiciliary care, this means that personal care is completely free. People might still be charged for things like cleaning or meal preparation, but most Scottish councils keep these charges low or don’t charge at all. Supported living is treated similarly: personal care is free, and any extra support might carry a small charge depending on the relevant local authority’s policies.
Residential care in Scotland
When moving into a care home, things work a little differently. People still get free personal and nursing care, but they may have to contribute to their accommodation and living costs. This is dependent on a financial assessment.
As of April 2024:
- The council pays the standard rate if service users have less than £21,500 in savings.
- If they have more than £35,000, they pay the full amount.
- If they fall in between, they pay a partial contribution: £1 per week for every £250 they have above the lower limit.
The standard rate is an agreed amount between councils and private and charity-run care homes that the councils will contribute each year. For 2025/2026, these are:
- £1,013.05 per week for nursing care
- £881.98 per week for residential care
As in the rest of the UK, people’s homes may be included in the fina
Key benefit change: pension age disability payment
As of February 2025, Scotland is rolling out its own replacement for Attendance Allowance, called Pension Age Disability Payment. This means that people in Scotland currently receiving Attendance Allowance are gradually being moved over to the new system. For those who live in Scotland and already get Attendance Allowance, they don’t need to reapply.
How to pay for social care in Wales
Paying for adult social care in Wales is again different from other parts of the UK. For those moving into a care home, they only need to start paying the full cost if they have over £50,000 in savings or assets – this is the highest threshold anywhere in the UK. The local council will help cover the costs if people have savings below that. Service users’ home value won’t be counted for the first 12 weeks, as in the rest of the UK, or if certain family members are still living there. They will still be expected to put most of their income (like pensions) toward care home fees, but they’ll be allowed to keep at least £44.65 a week as their Personal Expenses Allowance (PEA).
For care at home or other community-based support, Wales has a cap on how much people can be charged: no more than £100 a week, regardless of how many hours of help are needed. If someone’s savings are over £50k, they likely pay the full £100, but if they’re under this amount, their weekly fee is based on a financial assessment of what they can afford.
Last year, the government debated raising this £100 cap due to rising care costs, but this has been shelved for now following a consultation. Wales is also working towards a National Care Service, aiming to eventually make social care free at the point of need, much like the NHS. So, things may get even more affordable in the future.
Responsibilities for care providers
Care providers must be prepared to explain funding rules to service users and their families, particularly around property assessments and Deferred Payment Agreements. Accurate documentation of financial assessments, care plans, and service agreements ensures clarity and reduces disputes or delayed payments. Providers must also remain informed of changes to personal expense allowances and local authority contribution limits.
At ClouDoc we support care providers in staying compliant with up-to-date legislation and guidance on adult social care across all four UK nations. We ensure all your policies, service agreements and staff training materials reflect current funding frameworks, helping you deliver clear, ethical and lawful care
For more information on adult social care in England or any related document queries, please contact our ClouDoc team at support@cloudoc.co.uk or call 0330 808 0050. We’re here to help!
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