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Funding for care

Understanding how to pay for care

Paying for care can feel confusing — but you don’t have to figure it out alone. At Bluebird Care Peterborough & Oundle, we believe in transparency, kindness, and clear guidance. Whether you’re exploring local authority funding, benefits like Attendance Allowance, or self-funding options, our team is here to help you understand your choices and find the best solution for you or your loved one.

We know that arranging care for yourself or a loved one can feel overwhelming — especially when it comes to understanding how to pay for it. From local authority funding to government benefits and private options, there’s a lot to take in. That’s why we’ve put together this simple guide to help you explore your choices and make informed decisions.

At Bluebird Care Peterborough & Oundle, we believe quality care should come with clarity, compassion, and peace of mind.

Local Authority funding and financial assessments

If you or your loved one needs care, your first step should be to contact your local authority’s adult social care team. They can arrange a care needs assessment, followed by a financial assessment (sometimes called a means test).

If your savings and income are below the threshold (currently £23,250 in England), your local council may contribute toward the cost of care.
If your savings are above this amount, you’ll usually need to pay for your care privately.

Even if you’re not eligible for full funding, it’s still worth going through the process — the local authority can offer advice, guidance, and sometimes partial support.

What are Direct Payments?

If you qualify for council funding, you may be offered Direct Payments — a way to have more control over your care.

Instead of the council arranging care for you, the money is paid directly to you (or your representative). You can then choose your preferred care provider — for example, Bluebird Care Peterborough & Oundle — giving you flexibility and consistency with the carers you know and trust.

What is Attendance Allowance?

If you’re over State Pension age and need help with personal care (such as washing, dressing, or managing medication), you may be entitled to Attendance Allowance.

It isn’t means-tested, so your income and savings don’t affect eligibility.
You don’t need to have someone currently helping you — the allowance is based on your needs.

There are two weekly rates, depending on how much help you require. The rates currently are £73.90 or £110.40. (2025).

You can apply by downloading a form from the GOV.UK website or by calling the Attendance Allowance helpline on 0800 731 0122.

Could equity release be an option?

For homeowners, equity release can sometimes help fund long-term care without needing to sell your home right away.

Equity release allows you to access the value of your property as a lump sum or regular payments, while still living in your home.

It’s a big financial decision, so we always recommend speaking to a specialist, independent financial adviser, ideally one accredited by SOLLA — the Society of Later Life Advisers. They can guide you through the pros and cons to make sure it’s the right choice for your circumstances.

Find an accredited adviser at SOLLA.

What is NHS Continuing Healthcare (CHC)?

If your loved one has significant ongoing health needs, they may be eligible for NHS Continuing Healthcare — a package of care arranged and fully funded by the NHS.

This isn’t means-tested and can cover care in your own home or a care setting. To find out if you might qualify, you can request an assessment through your GP, district nurse, or social worker.