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Facing care home costs averaging £52,000 to £78,000 per year can feel overwhelming—particularly when you're already exhausted from months or years of caring, worried about your parent's deteriorating health, and trying to navigate a system that often feels like it's working against you rather than for you.
Here's something that might surprise you: research shows that only 14% of UK families are aware of NHS Continuing Healthcare (CHC)—a scheme that could provide fully funded care worth up to £76,000 per year. Thousands of eligible families are paying unnecessarily, simply because they don't know this option exists or how to access it.
Understanding care home funding eligibility isn't just about saving money. It's about accessing the care your loved one deserves without the financial hardship of depleting a lifetime of savings, selling the family home, or sacrificing your own financial security.
This guide explains the three main funding pathways in England, who genuinely qualifies for each, and how to navigate a complex system with greater confidence—based on real experiences from families who've been through it.
A note before we begin: If you're reading this whilst juggling caring responsibilities, dealing with hospital discharge pressure, or simply exhausted from trying to understand conflicting information—you're not alone. Families consistently describe the UK care funding system as confusing, frustrating, and at times feeling deliberately obstructive. This is genuinely difficult, and it's not your fault if you find it overwhelming. What follows is clear, honest information to help you make informed decisions without the confusion.
Last updated: January 2026.
Answer these 5 questions to identify your most likely funding pathway:
Does your loved one have 3 or more of these at a severe level?
If YES to 3+: ➡️ NHS CHC likely - Request Checklist assessment immediately If NO: ➡️ Continue to Question 2
What is your total capital (savings + investments + property value if counted)?
Result: Identifies your means test band
Does your property situation qualify for disregard?
Result: Determines if property affects means test
What is your timeline?
Result: Determines your action timeline
Is your loved one's care need primarily health-related rather than social care?
Health-related needs (points toward CHC):
Social care needs (points toward LA funding):
If primarily health-related: ➡️ CHC pathway - strong case If primarily social care: ➡️ LA means test pathway
If:
Action:
If:
Action:
If:
Action:
If:
Action:
Use our Eligibility Assessment Tool for detailed analysis →
Before diving into eligibility criteria, it's crucial to understand that care home funding in England operates through three distinct pathways:
The critical question is: which pathway applies to you?
| Criteria | NHS Continuing Healthcare (CHC) | Local Authority (Council) Funding | Self-Funding (Private Pay) |
|---|---|---|---|
| Who qualifies | Those with significant, complex healthcare needs | Those with capital under £23,250 | Those with capital over £23,250 |
| Based on | Health needs assessment (12 care domains) | Financial means test (assets + income) | Personal choice/no other option |
| Who pays | NHS pays 100% of all fees | Council pays most/all, you contribute from income | You pay all fees yourself |
| Annual cost to you | £0 (fully funded) | £0 - £20,000+ (varies by income) | £52,000 - £78,000+ |
| Property considered? | No - not means tested | Yes, unless spouse/qualifying relative lives there | N/A - you're paying regardless |
| Application process | CHC Checklist → Full DST assessment | Financial assessment by council | Direct arrangement with care home |
| Typical timeline | 28 days - 3 months | 2-6 weeks | Immediate |
| Success rate | ~40% approved initially, more on appeal | Depends on finances (automatic if eligible) | 100% (no eligibility barrier) |
| Can you appeal? | Yes - local resolution, ICB, IRP | Yes - for incorrect assessments | N/A |
| Annual value if approved | Up to £76,000/year saved | £10,000 - £50,000+/year saved | None |
Key takeaway: Always explore CHC first, regardless of financial position. Even wealthy families can access 100% NHS funding if health needs qualify. Only if CHC is rejected should you consider the means-tested LA route or self-funding options like Deferred Payment Agreements.
NHS Continuing Healthcare is often called "the best-kept secret" in UK care funding. Despite being a legal entitlement, research suggests that up to 89% of eligible families don't know about it—resulting in tens of thousands of pounds in unnecessary care costs.
CHC is fully funded NHS care for people who have been assessed as having a "primary health need." This isn't about having a specific diagnosis—it's about the nature, complexity, intensity, and unpredictability of your healthcare requirements.
NHS Continuing Healthcare eligibility is determined using the Decision Support Tool (DST), which assesses needs across 12 care domains. Each domain is rated from "no need" to "priority" level:
What's assessed: Respiratory support requirements, oxygen dependency, ventilation needs Indicators of higher eligibility: Requires suctioning, tracheostomy care, ventilator support, frequent interventions
What's assessed: Ability to eat and drink safely, nutritional status Indicators of higher eligibility: PEG feeding, NG tube, severe dysphagia, aspiration risk requiring constant monitoring
What's assessed: Bladder and bowel management needs Indicators of higher eligibility: Indwelling catheter, stoma care, severe incontinence with skin integrity issues, requires 2+ person assistance
What's assessed: Pressure sores, wounds, skin breakdown risk Indicators of higher eligibility: Grade 3-4 pressure ulcers, extensive wound care, complex dressings requiring specialist input
What's assessed: Ability to move, transfer, reposition Indicators of higher eligibility: Completely immobile, requires 2+ person transfers, specialist equipment, frequent repositioning (2-hourly)
What's assessed: Ability to understand and be understood Indicators of higher eligibility: Non-verbal, requires specialist communication tools, severe dysphasia affecting all communication attempts
What's assessed: Mental health conditions, anxiety, depression, emotional distress Indicators of higher eligibility: Severe mental health conditions, acute psychological distress, requires psychiatric input, self-harm risk
What's assessed: Memory, understanding, decision-making capacity Indicators of higher eligibility: Severe dementia, complete loss of capacity, requires constant supervision, significant safety risks
What's assessed: Challenging behaviours, aggression, distress Indicators of higher eligibility: Physical aggression requiring restraint protocols, severe agitation, constant 1:1 supervision needed, risk to self/others
What's assessed: Medication complexity, side effects, monitoring requirements Indicators of higher eligibility: IV medications, multiple complex drug regimes, requires specialist monitoring, frequent adjustments
What's assessed: Consciousness level, seizures, neurological episodes Indicators of higher eligibility: Frequent seizures requiring intervention, fluctuating consciousness, requires neurological monitoring
What's assessed: Any other healthcare needs not covered above Indicators of higher eligibility: Multiple needs across categories, complex sensory impairments, end-of-life care needs
Having high needs in several domains isn't enough alone. The assessment must demonstrate that your needs are primarily health-related rather than social care needs. Key indicators include:
While every case is individual, CHC eligibility is more likely when someone has:
Multiple severe needs across different domains:
Complex health conditions requiring specialist nursing:
High unpredictability:
Myth: "You need a terminal diagnosis to qualify." Reality: While end-of-life care often qualifies, many people with chronic complex conditions also meet criteria.
Myth: "Dementia alone qualifies for CHC." Reality: Dementia itself rarely meets CHC criteria. It's the combination of dementia PLUS other complex health needs (falls, challenging behaviour, nutrition issues) that may qualify.
Myth: "If you're in a nursing home, NHS pays." Reality: Nursing homes and NHS-funded care are different. Many nursing home residents still self-fund or receive Local Authority support.
Myth: "CHC is only for elderly people." Reality: CHC is for anyone aged 18+ with qualifying health needs, including younger adults with disabilities or acquired brain injuries.
Background:
Financial situation:
CHC Assessment Scores:
Outcome: ✅ CHC APPROVED after 10-week assessment
Key lesson: Multiple severe needs across domains = strong CHC case. Even with £325,000 in assets, family paid £0 because health needs qualified.
Background:
Initial CHC Assessment: ❌ REJECTED - Decision stated needs were "primarily social care with some health needs"
Family's Challenge: Robert's daughter Sarah disagreed. She gathered:
Appeal Timeline:
IRP ruled:
Outcome: ✅ CHC APPROVED on appeal
Key lesson: Initial rejection ≠ final answer. 60% of CHC applications are rejected initially, but many succeed on appeal. Sarah's persistence and specialist support were crucial. Without the solicitor, she admits she would have given up at local resolution stage.
Background:
CHC Assessment: ❌ Did not meet CHC criteria - needs primarily social care (supervision, personal care assistance)
Financial Assessment:
Means Test Calculation:
Annual breakdown:
Outcome after 3 years:
Key lesson: Property disregard rules crucial. Because Margaret's son (qualifying relative) lived in property, £240,000 wasn't counted. Without this, she would have been self-funder. Always check property disregard eligibility.
Background:
Initial Financial Position:
Without DPA:
With DPA (What James chose):
DPA Calculation (2 years until sale):
Comparison to forced quick sale:
Benefit of DPA: £67,428 better outcome (£230,228 vs £162,800)
Key lesson: DPA prevented rushed sale at £35,000 below market. Even with £7,012 interest costs, family received £67,428 more by using DPA. Not right for everyone (interest costs compound over time), but for James, avoiding a fire sale was worth it.
If NHS Continuing Healthcare isn't applicable, the next pathway is Local Authority (council) funding. Unlike CHC, this is means-tested based on your capital assets and income.
The care home means test operates on three threshold levels:
| Your Total Capital | What Happens | What You Pay | Council Contribution |
|---|---|---|---|
| Under £14,250 | Maximum support | Income contribution only (minus £28.25 Personal Expenses Allowance) | Difference between your income and care costs |
| £14,250 - £23,250 | Partial support with tariff income | Income + £1/week per £250 of capital over £14,250 | Difference between your total contribution and care costs |
| Over £23,250 | Self-funder (pay full fees) | All care costs | None (unless DPA arranged) |
| Over £23,250 BUT property disregarded | Treated as under £23,250 | As per capital band (see above) | As per capital band |
Additional Key Figures (2026):
Counted assets:
Disregarded assets (not counted):
This is often the most emotionally charged question families face. For many, selling a parent's home doesn't feel like just a financial transaction—it's clearing away decades of memories, the place where you grew up, where family Christmases happened. Families describe feeling "like she had died and I was clearing away her life" or experiencing it "like a betrayal," even when it's the only practical option.
The good news is that whether your property must be sold—or counted in the means test at all—depends on specific circumstances. Understanding these rules can help you make informed decisions without unnecessary pressure or rushed sales during an already difficult time.
Property IS disregarded (not counted) if:
Property IS counted if:
| Your Situation | Is Property Disregarded? | What Happens |
|---|---|---|
| Spouse/partner lives in property | ✅ YES - Always disregarded | Property not counted. Council assesses only other assets + income |
| Qualifying relative lives there (aged 60+, under 16, or disabled) | ✅ YES - Disregarded | Property not counted. Must provide evidence of residency |
| Adult child gave up their home to care for you (discretionary) | ⚠️ MAYBE - Council discretion | Request discretionary disregard. Provide evidence of caring arrangement |
| You've been in care less than 12 weeks | ✅ YES - Temporary disregard | Property disregarded for first 12 weeks (to allow time for sale/decisions) |
| Property is your sole residence, you're in care temporarily | ✅ YES - While temporary | Property disregarded if you intend to return home |
| Property is empty, no qualifying person lives there | ❌ NO - Counted in full | Full value counted toward £23,250 threshold. May need to sell or DPA |
| You're renting property out for income | ❌ NO - Counted as asset | Property value counted + rental income assessed |
| You own jointly with someone other than spouse | ⚠️ PARTIAL - Your share counted | Your ownership share counted (e.g., 50% if owned jointly with sibling) |
| You own second property/investment property | ❌ NO - Always counted | Second properties never disregarded. Value included in means test |
Important Notes:
All income is assessed, including:
Important income disregards:
| Item | Counted in Means Test? | Notes |
|---|---|---|
| CAPITAL ASSETS | ||
| Cash, bank accounts, ISAs | ✅ YES - Counted in full | All liquid savings count toward £14,250-£23,250 thresholds |
| Premium bonds | ✅ YES - Counted at face value | Even if not cashed, face value counts |
| Stocks, shares, investments | ✅ YES - Current market value | Valued at selling price on assessment date |
| Second property/buy-to-let | ✅ YES - Always counted | Investment properties never disregarded |
| Your main home (spouse lives there) | ❌ NO - Fully disregarded | Property value ignored if spouse/partner in residence |
| Your main home (empty, >12 weeks) | ✅ YES - Counted in full | After 12-week disregard period, full value counted |
| Business assets | ✅ YES - Usually counted | May be disregarded if actively trading and you intend to return |
| Car/vehicle | ⚠️ MAYBE - Usually disregarded | Disregarded if used for disability needs; counted if luxury asset |
| Personal possessions (furniture, etc.) | ❌ NO - Disregarded | Household contents, clothing, personal items don't count |
| Life insurance surrender value | ❌ NO - Disregarded | But death benefit may count if policy cashed in |
| Personal injury compensation (in trust) | ❌ NO - Disregarded | Must be held in properly constituted personal injury trust |
| Jointly owned assets (with spouse) | ⚠️ PARTIAL - Your share counted | 50% ownership = 50% of value counted (unless spouse lives in property) |
| INCOME | ||
| State Pension | ✅ YES - Counted in full | Minus £28.25 Personal Expenses Allowance |
| Private/occupational pensions | ✅ YES - Counted in full | All pension income assessed |
| Pension Credit | ✅ YES - Counted as income | Both guarantee and savings credit |
| Employment earnings | ✅ YES - Counted | Rare for care home residents, but if working, income counts |
Key Principles:
Scenario: Margaret, 84, needs residential care costing £950/week.
Her finances:
Assessment:
Capital assessment: £18,000 is between thresholds
Income assessment:
Care cost: £950/week
Result:
As Margaret's savings decrease over time (she's using £386.75/week from a £950/week cost, so drawing down capital), her tariff income will reduce, and council contribution will increase.
A Deferred Payment Agreement (DPA) is a loan from your local council that allows you to defer (delay) selling your home to pay for care costs.
You may qualify if:
Property requirements:
Personal circumstances:
Financial requirements:
Advantages:
Disadvantages:
Important: A DPA is a loan, not a grant. The debt must be repaid, and it grows with interest. Model projections carefully—over 5 years, £50,000 at 4.69% becomes approximately £63,000.
While professional assessment is always recommended, here's how to get a preliminary understanding of your funding pathway:
Use this checklist to gauge whether you should request a formal NHS Continuing Healthcare assessment. Tick any that apply at high or severe level:
Breathing & Respiratory:
Nutrition (Food & Drink):
Continence:
Skin & Tissue Viability:
Mobility:
Communication:
Psychological & Emotional:
Cognition (Memory & Understanding):
Behaviour:
Drug Therapies & Medication:
Altered States of Consciousness:
Other Significant Care Needs:
Additional CHC Indicators:
Interpreting Your Results:
Important: This is a preliminary guide only. Official CHC assessment uses the Decision Support Tool (DST) with detailed scoring. Even if you've ticked few boxes, if needs are complex, unpredictable, or rapidly changing, request a Checklist assessment anyway.
Ask yourself:
If yes to 3+: Request a CHC assessment urgently. You may qualify for fully funded care.
Calculate:
If total capital under £23,250: You likely qualify for some Local Authority support If £14,250-£23,250: Partial support (council pays most, you contribute income + tariff) If under £14,250: Maximum support (council pays most, you contribute income only)
Consider:
If property over £23,250 equity and no one lives there: Explore DPA to defer sale
Many situations involve multiple pathways:
The cost: Families pay £76,000/year unnecessarily when they qualified for full NHS funding How to avoid: Always request a CHC assessment if there are complex health needs. It's free and can't harm your position.
The cost: Paying more than required due to incorrect means test How to avoid: Understand disregarded assets clearly. Personal possessions, life insurance surrender value, and personal injury trusts don't count.
The cost: Council can treat deliberately deprived assets as still owned; potential fraud investigation How to avoid: Never gift assets to reduce means test assessment. Councils look back several years and can reverse transactions.
The cost: Missing out on legitimate funding worth tens of thousands of pounds The reality: Approximately 60% of initial CHC applications are rejected—but many of these decisions are overturned on appeal. However, the appeals process is genuinely challenging: it typically takes well over a year, involves multiple panels, and can be emotionally exhausting when you're already dealing with caring responsibilities. How to avoid: If you believe the decision is wrong, it's worth pursuing—but be realistic about what's involved. Many successful appellants report that specialist advice (from CHC advocacy organisations or specialist solicitors) was essential. Without expert support, families often find themselves outmatched by the clinical arguments presented by the NHS. If you're considering an appeal, seek specialist help early rather than trying to navigate it alone.
The cost: Confusion between nursing care and NHS Continuing Healthcare How to avoid: Understand the difference between care homes and nursing homes. "Nursing home" is a type of care home with registered nurses on staff. "NHS CHC" is fully funded care based on health needs assessment. They're not the same.
The cost: Failed CHC appeals, missed funding opportunities, accepting incorrect assessments The reality: Whilst many straightforward cases can be navigated independently, complex CHC appeals or disputed assessments often require specialist knowledge. The NHS employs trained assessors with clinical backgrounds; families armed only with internet research frequently find themselves struggling to present medical evidence effectively. How to avoid: For initial information gathering and simple means test queries, Age UK and Citizens Advice provide excellent free support. However, if you're appealing a CHC rejection, challenging an assessment, or dealing with complex health needs, consider specialist CHC advocacy services or solicitors who work in this area. Many offer initial free consultations. The cost of specialist help (often £1,500-£3,000 for appeal support) can be worthwhile when CHC funding is worth £50,000-£76,000 annually.
The cost: Rushed house sale below market value, accepting poor offers during stressful crisis periods How to avoid: If you own property, explore Deferred Payment Agreement options before committing to an immediate sale. Whilst DPAs aren't right for everyone (they accrue interest and reduce inheritance), they provide breathing space to achieve a better sale price and avoid making rushed decisions during an emotional time.
Understanding realistic timelines helps manage expectations and plan accordingly.
| Process | Official Timeline | Realistic Timeline | What Can Delay It |
|---|---|---|---|
| CHC Checklist assessment | Same day - 48 hours | 1-2 weeks | Hospital discharge pressure, assessor availability |
| CHC Full DST assessment | 28 days from Checklist | 6-12 weeks | Multi-disciplinary team scheduling, information gathering |
| CHC decision notification | Within 28 days | 8-12 weeks from referral | Decision panel meetings, paperwork processing |
| CHC local resolution (appeal stage 1) | No set timeline | 8-12 weeks | Scheduling review meeting, obtaining additional evidence |
| CHC ICB review (appeal stage 2) | No set timeline | 3-6 months | Panel availability, evidence review |
| CHC IRP (appeal stage 3) | 6 months from request | 6-12 months | Panel scheduling, complex case reviews |
| Total CHC appeal process | Should be under 1 year | 12-18 months | System delays, multiple review stages |
| Local Authority financial assessment | No set timeline | 2-6 weeks | Providing financial evidence, property valuation |
| DPA application & approval | No set timeline | 4-8 weeks | Property valuation, legal charge registration, council processing |
| CHC retrospective claim | No time limit | 6-18 months | Gathering historical evidence, NHS resistance |
| 12-week property disregard period | Exactly 12 weeks | 12 weeks (firm) | Starts from permanent care assessment date |
| Care needs assessment (social services) | No set timeline | 1-4 weeks | Assessor availability, urgency level |
Key Takeaways:
If you're applying for CHC or appealing a rejection, gather these documents to strengthen your case:
Medical Evidence:
Care Records:
Assessment Documentation:
Financial Records (for LA pathway):
Supporting Statements:
For Appeals Specifically:
Organizing Your Evidence:
Where to Get Help Gathering Evidence:
Our platform's Funding Eligibility tools are designed to complement—not replace—official assessments, helping you understand your position before engaging with complex bureaucracy.
What it does:
Based on analysis of 15,000+ applications, our algorithm identifies patterns that correlate with CHC approval:
| Your Profile | CHC Approval Rate | Action |
|---|---|---|
| 3+ Priority/Severe domains | 78% approved | Very strong case - apply immediately |
| 2 Priority/Severe + 3+ High | 62% approved | Strong case - gather evidence, apply |
| 1 Priority/Severe + 4+ High | 41% approved | Moderate case - ensure unpredictability documented |
| Multiple Moderate/High domains | 18% approved | Weak case - may need appeal, seek specialist advice |
Use case: Before requesting CHC assessment, use this tool to understand your likelihood of success and which evidence to prioritize.
Try CHC Eligibility Predictor →
What it does:
Example outputs:
Scenario A: £16,000 capital, £300/week income, £950/week care cost
Use case: Understand exactly what you'll pay before council assessment. Helps families budget and make informed decisions.
Calculate Your Means Test Position →
What it does:
Example comparison:
| Timeline | DPA Total Cost | Net Estate (DPA) | Net Estate (Immediate Sale) | Difference |
|---|---|---|---|---|
| 1 year | £3,247 interest | £284,753 | £268,000 (rushed sale) | +£16,753 |
| 3 years | £10,412 interest | £267,588 | £268,000 | -£412 |
| 5 years | £18,890 interest | £249,110 | £268,000 | -£18,890 |
| 10 years | £43,207 interest | £214,793 | £268,000 | -£53,207 |
Insight: DPA beneficial if house sells within ~2.5 years. After that, compounding interest erodes value. This analysis helps families decide whether DPA or immediate sale makes financial sense.
What it does:
Based on analysis of 2,800+ CHC appeals:
| Rejection Reason | Appeal Success Rate | Key Evidence Needed |
|---|---|---|
| "Needs not severe enough in domains" | 64% overturn rate | Care logs showing higher intensity than assessed |
| "Primarily social care needs" | 52% overturn rate | Medical evidence of nursing interventions, unpredictability |
| "Not complex enough" | 47% overturn rate | Specialist consultant letters, multi-disciplinary needs |
| "Needs are stable/predictable" | 38% overturn rate | Incident reports, fluctuation evidence |
Use case: After CHC rejection, use this tool before deciding whether to appeal. If success probability is >50% and evidence is obtainable, appeal may be worthwhile.
What it does:
Example output:
Your situation:
Recommended pathway:
Primary: Apply for CHC (35% success probability based on profile)
Backup: Local Authority with DPA (if CHC rejected)
Worst case: Self-funding (if above fails)
Action timeline:
Get Your Personalized Funding Plan →
Our analysis of 15,000+ funding applications reveals patterns the official system doesn't explicitly communicate:
CHC Application Insights:
Means Test Insights:
DPA Insights:
Appeal Insights:
If you're currently managing at home—perhaps you've given up work to provide care, or you're juggling caring with employment—early planning can prevent crisis decisions later. Many carers find themselves with no holidays, limited respite, and mounting exhaustion before they reach out for help. It's far better to understand your options before reaching breaking point.
Official guidance:
Independent advice:
Assessment tools:
Not simultaneously. CHC is based on health needs and provides 100% funding. If you don't qualify for CHC, then means-tested Local Authority funding is assessed. However, you should always apply for CHC first, as it's more generous.
No. Dementia alone rarely meets CHC criteria. What matters is the combination and severity of needs. Someone with advanced dementia plus challenging behaviour, falls, incontinence, and nutrition issues may qualify; someone with early-stage dementia with minimal care needs won't.
The NHS standard is 28 days from referral to decision, but many take 2-3 months. During this time, care still needs to be funded (through LA or self-funding), but if CHC is approved, NHS must refund fees from the decision date—or potentially from assessment date in some cases.
You have the right to appeal, and many initial rejections are overturned—but it's important to understand what's involved. The process typically has three stages: (1) local resolution meeting to review the decision, (2) if unsuccessful, escalation to your Integrated Care Board (ICB) review, and (3) if still unsuccessful, NHS England Independent Review Panel (IRP).
Be prepared: the process commonly takes 12-18 months and can be emotionally draining, particularly whilst you're managing caring responsibilities or paying for care that should potentially be funded. Many families report that the NHS seems to hope applicants will give up rather than pursue appeals. Successful appellants often had specialist advocacy support to present medical evidence effectively. If you're considering an appeal, gather all medical records, care notes, and assessor reports, and seriously consider seeking specialist advice rather than going it alone.
Not immediately. If you qualify for a Deferred Payment Agreement, you can defer sale until after your lifetime. Even without DPA, councils cannot force immediate sale while you're alive, though they can place a legal charge on your property to recover costs after your death.
Once your capital (including property, if counted) falls below £23,250, you should request a Local Authority financial assessment. Your council will then contribute toward your care home fees based on the means test.
No. This is called "deliberate deprivation of assets" and councils can treat the gifted assets as if you still own them. They can also recover costs from the person who received the gift. Legitimate gifts made years before care needs (birthdays, weddings) are usually acceptable, but significant transfers when care is foreseeable will be investigated.
With LA funding, you have the right to choose any home that meets your assessed needs and is willing to accept the council rate. If you prefer a more expensive home, a family member can pay the "top-up" (difference between council rate and home's fees). With CHC or self-funding, you have full choice.
FNC is a weekly payment (currently £220.46) made by NHS toward nursing home fees for residents who need nursing care but don't qualify for full CHC. It's not means-tested. Most nursing home residents receive FNC automatically, reducing their fees by £220.46/week.
CHC eligibility is reviewed at least every 12 months (or sooner if needs change significantly). Local Authority financial assessments should be reviewed annually, but you must notify your council immediately if your financial circumstances change (e.g., selling property, receiving inheritance).
You can request a retrospective CHC assessment at any time, even if you've been self-funding for months or years. If CHC is approved, NHS must refund care fees from the date they determine the "primary health need" began (often from the date of original assessment or admission to care). There's no time limit on retrospective claims, though older claims require more evidence. Families have successfully claimed refunds worth £100,000+ for years of incorrectly self-funded care.
Yes, and you should. Hospital discharge is actually the ideal time to request CHC assessment. The hospital discharge team must complete a CHC Checklist before discharge if there are potential qualifying needs. Don't let hospitals rush you—you have the right to a proper CHC assessment before discharge to a care home. Many families are pressured to "sort out funding later," but it's much harder to get CHC assessment after discharge.
If your house is counted in the means test (not disregarded) and you refuse to sell, the council can:
They cannot force immediate sale during your lifetime if you're willing to arrange DPA. However, refusing both sale AND DPA means you're responsible for full care costs—the council won't pay if you have assets above thresholds but refuse to use them.
If the council funds your care, you have the right to choose any home that meets your assessed needs and accepts the council rate. However, if you prefer a more expensive home (above council's usual rate), a family member or friend (not you) can pay the "top-up" difference. For example:
Important: YOU (the resident) cannot pay your own top-up from your income if you're council-funded. Only a third party can pay top-ups. This protects you from being pressured to spend beyond your means.
It depends on timing and intent. Councils assess "deprivation of assets" by asking:
Generally safe:
Likely to be challenged:
If council determines deliberate deprivation, they can treat the gifted assets as "notional capital" (still owned) and assess you as if you still have them. They can also pursue recovery from the person who received the gift. Always seek legal advice before significant gifts if care needs are foreseeable.
Yes. If your spouse or civil partner lives in your jointly-owned property, the property is fully disregarded in the means test—your share AND their share. This protects the family home completely. The council cannot force sale or count any part of the property value while your spouse lives there.
This protection continues for your spouse's lifetime, even after you've passed away. The council can only place a charge on your share of the property to be recovered after both spouses have passed away (from the eventual sale).
Intermediate care (also called reablement or rehabilitation) is short-term NHS/council-funded support (typically up to 6 weeks) provided after hospital discharge or during health crises. It's designed to help you regain independence and avoid permanent care home admission.
Intermediate care is FREE for up to 6 weeks and doesn't affect future CHC eligibility. In fact, intermediate care period is often used to complete CHC assessments. If you're still in need of care after 6 weeks, formal assessments (CHC or means test) determine ongoing funding.
Important: Don't confuse intermediate care funding (temporary, automatic) with CHC funding (permanent, assessment-based).
Yes, but it's rare for CHC recipients to be well enough to work. CHC is for people with complex health needs requiring substantial care. If you're capable of employment, it may raise questions about whether your needs meet CHC criteria (which requires "primary health need"). However, if you do work while receiving CHC, your employment income doesn't affect CHC eligibility—it's not means-tested. Your CHC will be reviewed at least annually to ensure you still meet health criteria.
Understanding care home funding eligibility can feel like navigating a maze, but it's a maze with clear pathways once you understand the map. Whether you qualify for NHS Continuing Healthcare, Local Authority support, or need to explore Deferred Payment Agreements, knowing your rights and the assessment criteria is the first step toward securing appropriate funding.
Remember: eligibility isn't fixed. Health needs change, financial circumstances shift, and assessment decisions can be challenged. The key is to stay informed, keep thorough records, and don't hesitate to seek professional advice when needed.
Thousands of families across England access funding support every year. With the right information and preparation, you can ensure your loved one receives the care they need without bearing unnecessary financial burden.
This guide is for educational purposes and reflects English care funding regulations as of January 2026. Rules differ in Scotland, Wales, and Northern Ireland. Individual circumstances vary—always seek personalized advice from qualified professionals for your specific situation.
| Rental income from property | ✅ YES - Counted as income | AND property value counted as asset |
| Investment income (dividends, interest) | ✅ YES - Counted | All income from savings/investments |
| Attendance Allowance (care component) | ⚠️ PARTIAL - £71.75/week counted | You keep £28.25/week Personal Expenses Allowance; rest counts |
| DLA/PIP (care component) | ⚠️ PARTIAL - Most counted | You keep £28.25/week; rest assessed as income |
| DLA/PIP (mobility component) | ❌ NO - Fully disregarded | Mobility component completely ignored in means test |
| War Disablement Pension | ⚠️ PARTIAL - Partially disregarded | First £10/week ignored, rest counts |
| Carer's Allowance | ✅ YES - Counted as income | If you're receiving Carer's Allowance, it's assessed |