How to Pay for Live-in Care in London: 2026/27 Funding Guide

Step 1: Ask your council for a care needs assessment

Every London borough has a duty under the Care Act 2014 to assess anyone who appears to need care and support, regardless of their income or savings. The assessment looks at what you can and can't do, and what outcomes matter to you. Contact your borough's adult social care team to request one - you can find each borough's council named on our area pages.

If you're assessed as having eligible needs, the council will then carry out a financial assessment (means test) to work out what, if anything, it will contribute.

Step 2: The financial assessment (means test)

For care at home, the value of the home you live in is disregarded - a key difference from moving into a care home. Councils also allow you to keep a minimum amount of income, and some disability-related expenses can be offset. If the council funds part of your care, you can ask for it as a direct payment, which may give you more choice over who provides it.

Attendance Allowance and other benefits

Attendance Allowance is paid to people over State Pension age who need help with personal care or supervision because of an illness or disability. It isn't means-tested, so savings and income don't matter, and it's tax-free. In 2026/27 it's paid at £76.70 a week (lower rate, for help during the day or night) or £114.60 a week (higher rate, for help during both the day and night, or for people nearing the end of life).

People under State Pension age may be able to claim Personal Independence Payment (PIP) instead. Receiving Attendance Allowance can also unlock extra Pension Credit for people on lower incomes. If someone has a diagnosis of dementia, they may also be disregarded for Council Tax purposes (severe mental impairment), which can reduce the household bill - ask your council.

NHS Continuing Healthcare (CHC)

If someone's needs are mainly health needs rather than social care needs - for example because of complex, intense or unpredictable health problems - they may qualify for NHS Continuing Healthcare. CHC is not means-tested and, if awarded, the NHS funds the full cost of care, including care at home.

Assessment usually begins with a checklist completed by a health or social care professional, followed by a full assessment if needed. For people who are rapidly deteriorating and may be entering the end of life, a fast-track process exists so that funding can be agreed within days. Ask your GP, hospital discharge team or district nurse about an assessment.

Paying privately

• Savings, pensions and investment income are the most common way families fund live-in care.
• Rental income from another property, or a family contribution, can also help.
• Equity release can unlock money from a home, but it's a significant decision - always take advice from a regulated adviser first.
• Some people buy an immediate needs annuity, which pays a guaranteed income towards care for life in exchange for a lump sum.

Independent advice is available from organisations such as Age UK and the Society of Later Life Advisers (SOLLA), which lists accredited financial advisers specialising in later-life care.