Funding Your Care

Self Funding

If your savings and assets exceed the threshold for local authority funding, you will likely need to pay for your long-term care yourself. In this case, you may be eligible for some financial assistance through Carer’s Allowance or Attendance Allowance, depending on your health and medical needs. This will contribute to the costs, but long-term care costs can be substantial, so, if you do have to self-fund, it’s essential to carefully plan and budget for the cost of care. In addition, you may need to explore different financial options.


Purchasing an Immediate Needs Annuity is one way of covering the costs of long-term care. An Immediate Needs Annuity is a financial product that pays out a regular income for the rest of your life or for a fixed period. The income can be used to cover care costs.

Equity Release

Another alternative, if you own a property, is to consider equity release schemes. These can be used to use some of the equity in your home to pay for long-term care costs, either through a lump sum or regular income. This can help fund your care needs, but it’s essential to carefully consider the implications for your estate and future inheritance.

Equity Release

In certain cases, if your care needs are primarily health-related and meet specific criteria, the NHS may fully fund your long-term care through the NHS Continuing Healthcare scheme. To qualify you must be assessed by your local Primary Care Trust (PCT) and meet their criteria. If you feel that you may qualify, you should contact your primary physician, or the PCT directly. They will then decide if you qualify and how much funding will be made available.

Personal Savings & Investments

Using personal savings, investments, or other assets (such as property) is another way to finance long-term care. If you have assets totalling more than £23,250 (in England currently, as at July 2023) then you may have to do so. Long-term care costs are, however, substantial, so be sure to consider the sustainability of these funds and how they will cover ongoing care costs.

Combination of funding Sources

Many people use a combination of the above methods to finance their long-term care, depending on their individual circumstances. This can make sense if you are responsible for your care needs personally and don’t wish to drain all your resources. An independent Financial Advisor (IFA) can help you to understand the options and to determine the best way forward.

Whatever your circumstances, it’s essential to seek professional financial advice to understand the best options for your specific situation. Additionally, you can contact your local Authority, alongside a financial advisor specialising in long-term care, to discuss your options and get specific guidance tailored to your unique circumstances.

You can also talk to your local Aurem care provider who will have access to the latest information when it comes to care funding.