What to Do Before Your Care Funds Run Out
Watching savings dwindle while trying to keep a loved one settled in the care and routine they've come to rely on is one of the most stressful positions a family can be in. The good news is that running out of money doesn't have to mean losing continuity — but it does mean acting before the money runs out, not after.
The three-month rule of thumb
Don't wait until savings actually hit zero. As a general rule, start the funding conversation with your local authority roughly three months before you expect capital to fall below the relevant threshold. Councils typically won't backdate support to before you contacted them, so early contact protects you from an unfunded gap. (NHS: paying for your own care)
Know your numbers
In England, the upper capital threshold for local authority support is £23,250 — above it, you're expected to self-fund; below it, the council contributes on a sliding scale. (NHS: paying for your own care) Wales, Scotland, and Northern Ireland each set their own thresholds, so it's worth checking the specific figure for where your loved one lives rather than assuming England's rules apply UK-wide.
The two routes into funding
Local authority funding starts with a care needs assessment, followed by a financial means test. If capital falls under the threshold, the council contributes towards home care costs.
NHS Continuing Healthcare (CHC) is different: it's for people whose primary need is health-related rather than social, and it's fully funded regardless of savings.
Officially, an eligibility decision should be made within 28 days of the referral being received — in practice, delays are common, and if it takes longer than 28 days and you've been paying towards care in the meantime, you may be entitled to a backdated refund from day 29. (NHS: continuing healthcare) That's exactly why starting early matters — build the possibility of a funding gap into your planning rather than being caught out by it.
Keeping the same carer once funding is approved
One of the biggest fears families have is losing a carer their loved one has come to trust, just as funding kicks in. The reassuring answer: in every part of the UK, there's a route to keep your own arrangement in place — you just need to ask for it by name, since it isn't always offered automatically.
England — everyone with a CHC care plan should be offered the option of a Personal Health Budget (PHB), letting you direct the funding yourself. (Scope: NHS continuing healthcare)
Wales — since 1 April 2026, adults eligible for CHC in Wales have the right to request a direct payment for their care, bringing Wales into line with England. (GOV.WALES: Direct payments for Continuing NHS healthcare)
Scotland — under Self-Directed Support, ask for "Option 1," a direct payment made by the local authority so you can arrange your own care. (gov.scot: Self-directed Support statutory guidance)
Northern Ireland — request Direct Payments through your local Health and Social Care (HSC) Trust, instead of the Trust arranging care for you. (nidirect: Direct payments for care) In each case, the funding comes to you rather than being arranged entirely by the authority — which means the carer who already knows your loved one's routine doesn't have to change.
Our role
Navigating funding while managing changing family care needs and everything else that comes with caring for someone is a lot to carry.
We're happy to talk through where you stand, what to ask for, and how to keep the continuity that matters most — wherever you are in the UK.
Self-funding options
If you are funding your Home Care yourself, there are various ways you can do this.
Here is a general overview of how to self-fund the care needed:
Personal income, savings, and/or investments:
If you have sufficient income, and/or savings or investments, this is an option that may suit you and your family.
Equity release
Increasingly, and more accurately known as ‘Lifetime Mortgages’. This is where major insurance companies, including Aviva and Legal & General lend cash, which can be used for any purpose, including the funding of care, secured against the value of your home.
Annuity
You could purchase an annuity, which is a form of insurance policy based on an actuarial calculation of your life expectancy that provides a consistent income in exchange for an upfront lump sum investment. When they are used for long-term live-in care, they provide a fixed income for life to fund care costs. A key point with annuities is to select the right product so that you are likely, at the very least, to get back in income the capital used to buy the annuity in the first place.
Legal considerations
In conjunction with sourcing advice about funding care, a person needing care who is considered to have the mental capacity should have all of the legal aspects of their affairs in order, an example of this could be a Lasting Power of Attorney (LPA) in place with trusted members of your family, and an up-to-date Will so that all of their future wishes about their care and finances are documented and carried out with the necessary advanced planning.
If you are planning to finance your situation, please check government websites for the latest information, and take a look at these additional sources of information that may help and offer some additional guidance:
UK Government:https://www.gov.uk/government/publications/care-and-support-whats-changing/care-and-support-whats-changing
https://www.gov.uk/browse/benefits/disability
Age UK – Paying for Care:https://www.ageuk.org.uk/information-advice/care/paying-for-care/
The Money Advice Service – Paying for Care:https://www.moneyadviceservice.org.uk/en/categories/paying-for-care
Society of Later Life Advisers:https://societyoflaterlifeadvisers.co.uk
Which? – Financing Care:https://www.which.co.uk/later-life-care/financing-care
Responsible Equity Release:https://www.responsibleequityrelease.co.uk