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Self-care funding

Drawing from the expertise of our sister companies, The Good Care Group and Oxford Aunts, who have 50 years of combined experience in the industry, we understand the cost and planning that goes into arranging home care. Recognising that many individuals prefer to age in the comfort of their own homes, we are committed to providing the necessary advice to families regarding supporting you with financing care.

Female client and female carer outside together with their white dog

A new local care service in Self-care Funding from leading home care provider, The Good Care Group

What is self funding care

Self-funding care is when you or your loved one must pay for your own care needs without assistance from your local authority or other funding resources. This is determined once you have had a financial assessment (means test) from your local council. Should you find yourself eligible for financial assistance, Cherished Home Care can provide a plan to help manage your expenses.

According to the NHS, you will not be entitled to support with the cost of care if you have savings worth more than £23,250 – known as the ‘upper capital limit’. This limit will rise to £100,000 from October 2025. If you don’t meet these criteria, one of our carer managers can provide you with a complimentary home care assessment to identify the level of care you need and the associated costs.

What is self funding care
Speak to our client services team 0203 728 7572
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How to self fund care

Care fees annuity

A care fees annuity, also called an immediate needs annuity, serves as an insurance policy tailored to assist individuals in managing the expenses associated with long-term care. An assessment will be conducted to identify the care requirements of yourself or your loved ones, while also looking into your future needs. Following this assessment, a fee is determined based on the outcome, with the aim of covering weekly care expenses, whether for residential care or a live-in care arrangement.

Equity release to finance care

Equity release schemes allow homeowners aged 55 and above to access capital tied up in their property without having to move out or sell their home. With equity release, you can receive a tax-free lump sum or draw smaller amounts against your property. This flexibility allows you to use the value of your house to fund your care or invest in care fees annuity, enabling you to receive live-in care within the familiarity of your own home, all without having to sell your house.

Decision & planning – Once their decision has been made, the CCG will write to you with the reasoning behind it. If you are eligible, you will be invited to discuss in further detail how and where you wish to receive your care.

Financial planning for costs

If you plan to self-fund your care, we recommend following the steps below. This will help you identify the available options and effectively plan ahead.

Useful resources

When self-funding your care, we strongly advise that you get unbiased expert advice from a specialist care adviser.

  • Society of Later Life Advisers (SOLLA) – They will help you find a local adviser who provides expert support on financial issues in later life and can help you make informed decisions for yourself or your loved one.
  • MoneyHelper – Brings financial and pension information from three government financial guidance advisors to offer insights into care fees, annuities and other forms of self-funding care.
  • Care Fees Annuity – This website has a calculator that can provide an estimated cost for your care based on your requirements.
Male carer and female client looking at picked flowers on a park walk together
female carer and female client having a drink together out in the park

Benefits entitlement

If you have received a means test from your local authority and you don’t meet the criteria, it is worth checking if you are eligible for benefits like Attendance Allowance and Personal Independence Payment (PIP), which aren’t means tested.

Attendance allowance is a benefit the government provides to help older individuals with a disability or a long-term health condition with the additional costs of personal care. This option won’t be dependent on your income or savings.

Personal Independence Payment (PIP) is support provided by the government to those who have a long-term condition or disability, with the extra costs of living independently. PIP is gradually replacing the Disability Living Allowance (DLA) for adults.

Read the Live-in Care Hubs guide to funding and financing care at home here.