Money is often the reason families put off arranging care. Not because they don’t want help, but because the funding system feels impossible to untangle from the outside — a mix of council assessments, NHS rules, and benefits that don’t seem to talk to each other.

This guide is for anyone in Liverpool trying to work out how home care actually gets paid for. It’s written for adult children, spouses, and family members who are approaching this for the first time, and it covers the main funding routes available: council-funded care, NHS Continuing Healthcare, benefits such as Attendance Allowance, and self-funding. By the end, you should understand which route is likely to apply, and exactly how to start the process with Liverpool City Council.

How Funding for Home Care Works in England

There isn’t one single system that pays for home care. Instead, funding comes from a combination of sources, and which one applies to you depends on two separate things: what your care needs are, and what your financial circumstances are.

These are assessed separately, and in a specific order. The needs assessment always comes first. Only once your needs have been identified does the conversation turn to who pays — the council, the NHS, you, or some combination of the three.

The Care Needs Assessment Comes First

If you contact Liverpool City Council about arranging care, the first step is a needs assessment, not a financial one. A member of the adult social care team will talk to you or your relative about the difficulties you’re facing day to day, and what would help improve your wellbeing and independence.

You can request this assessment online through Liverpool City Council’s website, or by calling their adult social care line on 0151 459 2606 (lines run Monday to Friday, 8am to 10pm). If your relative is in hospital, the discharge team can usually make this referral directly, which is often the quickest route into support after an illness or fall.

Only once the assessment has confirmed what level of care is needed does the council look at how it will be paid for.

The Financial (Means) Test Explained

If the needs assessment shows your relative would benefit from council-arranged care, a financial assessment (or “means test”) follows. This looks at savings, capital, and income to work out how much, if anything, they’ll need to contribute.

In England, the current capital limits are:

Savings and capital	What it means
Above £23,250 (upper limit)	Self-funding — the council won’t contribute until savings fall below this level
Between £14,250 and £23,250	Partial contribution — a small amount is added to what’s assessed as affordable, based on how far into this band the savings sit
Below £14,250 (lower limit)	Capital isn’t counted at all — contributions are based on income only

These thresholds have been frozen since 2010, so more people fall into the self-funding category each year than the figures might suggest.

One point that catches a lot of families out: for home care, the value of your relative’s house is not included in this assessment. That rule only applies to permanent residential care. If your parent owns their home and is being cared for in it, the property itself doesn’t count against them.

If Your Relative Is Assessed as Eligible for Council-Funded Care

Where the council does contribute, the money is usually offered as a personal budget — an amount calculated to meet the needs identified in the assessment. You can choose to have the council arrange services directly, or take some or all of it as a direct payment, which you manage yourself to buy care in the way that suits your relative best.

Direct payments offer more flexibility and choice over which agency provides care and when, but they come with responsibility: you’ll need to keep records and receipts showing how the money has been spent. Many families find a mixed approach works well, with the council managing part of the budget and a direct payment covering the rest.

When the NHS Pays: Continuing Healthcare

In a smaller number of cases, home care is funded entirely by the NHS through Continuing Healthcare (CHC). This isn’t means-tested at all — eligibility depends purely on whether your relative has a “primary health need,” meaning their care needs are primarily about managing a health condition rather than general support with daily living.

CHC assessments are carried out by a multidisciplinary team, usually starting with a screening checklist before a fuller assessment if it’s indicated. It tends to apply to people with complex, long-term conditions or those nearing the end of life, and a fast-track process exists for anyone whose health is deteriorating rapidly. It’s worth asking directly whether CHC applies during any hospital discharge conversation, as it isn’t always raised proactively.

Benefits That Can Help Toward the Cost

Separately from council or NHS funding, some benefits can help with the cost of care regardless of savings or income. The main one is Attendance Allowance, paid to people over State Pension age who need help with personal care or supervision because of a disability or long-term condition.

Attendance Allowance isn’t means-tested, isn’t affected by other income or savings, and is paid tax-free directly to the person receiving care — not the carer. There are two rates, depending on the level of need:

• Lower rate — where frequent help or supervision is needed during the day, or some supervision at night, but not both
• Higher rate — where help or supervision is needed both during the day and at night, or under special rules for a terminal illness

Rates are reviewed annually, so it’s worth checking the current figures when you apply rather than relying on older guidance. We’ll cover Attendance Allowance and related benefits in more depth in a separate guide, including how to apply and what evidence is typically needed.

Self-Funding: What It Means and What to Consider

If savings are above the upper capital limit, your relative will be classed as a self-funder. This doesn’t mean the council has no role — you can still ask them to carry out a needs assessment and arrange care on your behalf, sometimes for an administration fee, or you can arrange care privately yourself.

Self-funding gives you the most choice over which provider to use and how care is structured, but it also means the financial planning sits with you. It’s worth speaking to a financial adviser who specialises in care funding — look for one accredited by the Society of Later Life Advisers (SOLLA) — particularly if there’s a chance your relative’s needs will increase and savings could eventually fall towards the means-tested thresholds.

Funding Routes at a Glance

Route	Who it’s typically for	Means-tested?	How to access
Council-funded care	People with savings below £23,250 who meet the eligibility criteria	Yes	Request a needs assessment via Liverpool City Council
NHS Continuing Healthcare	People with complex, primarily health-related needs	No	Ask during hospital discharge or via GP/community health team
Attendance Allowance	Anyone over State Pension age needing help with personal care	No	Apply via the Department for Work and Pensions
Self-funding	People with savings above £23,250, or who choose not to involve the council	Not applicable	Arrange privately or via the council’s brokerage service

Getting Started in Liverpool

The practical first step is almost always the same, regardless of which funding route you end up on: request a care needs assessment. You can do this yourself, on behalf of a relative, or a professional such as a GP or hospital discharge coordinator can make the referral for you.

Liverpool City Council covers the whole city, including areas such as Woolton, Allerton, Garston and Childwall, so wherever your relative lives, the process starts in the same place. Don’t wait until a crisis forces the issue — starting the assessment conversation early tends to give families far more choice over how care is arranged.

Frequently Asked Questions

Will my parent have to sell their house to pay for home care? No. The value of a property is only included in the financial assessment for residential care, not for care delivered at home.

Can we get any help before a financial assessment has taken place? Yes. Attendance Allowance and NHS Continuing Healthcare are both assessed independently of savings and income, so they can be in place before or without a council financial assessment.

What happens if savings are just above the threshold? Your relative would initially be classed as a self-funder, but if care costs bring savings down towards the lower threshold over time, it’s worth requesting a fresh financial assessment, as council support may then become available.

Where do we start if we’re in Liverpool? Contact Liverpool City Council’s adult social care team on 0151 459 2606, or complete the online assessment request through their website, to begin the process.

Final Thoughts

Funding is rarely as simple as families expect, largely because it depends on need, income, savings, and health all being assessed through different routes. But the process itself follows a fairly predictable order: needs first, then finances, then a decision about who contributes what.

Understanding that sequence — and knowing that a needs assessment doesn’t commit you to anything — tends to make the whole process feel far less daunting than it first appears.

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Working out how to pay for home care is one of the biggest worries families face when a parent or relative starts needing support — and it’s often the reason people put off asking for help.

In England, funding comes from a mix of sources. If you contact Liverpool City Council for a care needs assessment, they’ll look at what support would help before any conversation about cost. If council funding applies, it depends on savings: above £23,250 you’ll usually self-fund, below £14,250 your capital isn’t counted at all, and in between a smaller contribution may apply. Importantly, your family home isn’t included in this assessment when care is given at home — that rule only applies to residential care.

Separately, Attendance Allowance can help with costs regardless of savings, paid to anyone over State Pension age who needs help with personal care. And where needs are primarily health-related, NHS Continuing Healthcare can fund care in full, with no means test at all.

If you’re just starting to explore care for a parent or loved one in Liverpool — whether in Woolton, Allerton, Garston, Childwall or elsewhere across the city — the first step is simply requesting a needs assessment through Liverpool City Council. You don’t need to have the funding worked out first.

At Holistic Care Services, we’re happy to talk through what the process might look like for your family, with no pressure and no obligation. Get in touch whenever it’s the right time for you.