Guide to Social
Care Funding
Understanding how social care funding works can be difficult which is why we are here to help.
If you or your loved one is looking to move on from the family home and lives with long-term health needs like autism, learning disabilities, physical disabilities, or acquired brain injuries, you may wish to seek support from your local authority's adult social care team.
Social Care Funding
The entire process begins by contacting your Local Council's Adult Social Care team. You can find your local authority by visiting gov.uk/find-local-council, or you can contact your local GP to make a referral.
Securing a funding agreement from your Local Council or the NHS is a mandatory step to access social care in a supported living or residential care setting. This agreement details how the cost of support will be covered.
Most longer-term support and care services require funding agreements for an individual before they can move into a service. Having a funding agreement means a decision has been made with another party to pay for the services needed. Both the person receiving support, their local council, and in some cases the NHS, will be involved in the payment process.
Your social worker can help put a funding agreement in place and explain how they will support you.
Allerton are here to help if you need any advice.
The Process and Eligibility
1. Council Discussion and Allocation:
Once you call your local council, the duty team will discuss the case internally. If the council thinks support is needed, you'll be allocated a social worker, and sometimes a case manager or care officer.
The eligibility criteria for social care funding usually include being:
aged 18 or over (for under 18s, a transition package may be put in place).
Living in the uk
Living with a disability, along with accompanying support needs
Having less than £23,250 in savings.
2. Needs Assessment
Your allocated social worker will conduct a Needs Assessment to gain a full picture of your care needs and determine if you meet the national eligibility criteria for support. You should think about your daily tasks, short- and long-term goals, and any issues you regularly face before the call.
3. Financial Assessment (Means Test)
Due to the high cost of care, most councils will also complete a Financial Assessment. This looks at the individual's financial situation, income, and any savings they may have to assess what benefits they could be entitled to.
Funding Eligibility Criterion |
Detail |
|---|---|
| Savings Limit | If the person needing support has less than £23,250 in savings, the council or NHS body will provide financial support if they cannot afford to pay for care. |
| Self-Funding | If the individual has over £23,250 in savings, they must use the additional saved amount to pay for social care initially. Once the savings fall to the limit of £23,250 or less, they no longer have to pay from this point onwards. |
| Family Finances | The financial assessment only looks at the finances of the person needing support—not their families or guardians—as everyone over 18 is regarded as an adult with separate money. This is true even if a family member is the appointee of the individual's finances. |
4. Funding - Who Will Fund the Social Care
If you are assessed as needing care and can't afford to pay, the council or NHS body will provide financial support. If you have several different support needs, your social worker may refer you for a further assessment by a separate body, such as the local NHS Clinical Commissioning Group (CCG) or Health Board.
Funding may then be paid by both your local council for social care and the CCG/Health Board for specific long-term health conditions. Your social worker is responsible for making sure this dual-funding process goes smoothly.
5. Other Funding
Depending on whether you live in a supported living or residential care location. Other funding and benefits may be applicable based on individual circumstances, including age, health condition, savings, housing costs, and whether the person lives in a supported living or residential care location.
Below are a list of the Main Types of Benefits
Universal Credit (UC): A payment to help with living costs, which may include housing costs.
Employment and Support Allowance (ESA): Available for people with a disability or health condition that affects their ability to work.
State Pension: A government pension usually paid to people in their 60s.
Pension Credit: Provides extra money for living costs to those over State Pension age and on a low income.
Personal Independence Payment (PIP): Can help with extra living costs for those with a long-term physical or mental health condition, or who have difficulty with everyday tasks or getting around.
Housing Benefit (HB): Can help pay rent for people who are unemployed, on a low income, or claiming benefits36. HB is being replaced by UC, except for people with long-term support needs who qualify for exempt rent.
Additional Grants: May be available to adapt a property, such as installing ramps or a stairlift to improve access.
In specialised supported living, you live in your own home with your own tenancy agreement and manage your own lifestyle.
Costs to Consider for Supported Living
In specialised supported living, you live in your own home with your own tenancy agreement and manage your own lifestyle. You must therefore considered certain other costs listed below:
Cost Component | Funding Source and Details |
|---|---|
| Care & Support | Paid for by the Local Council, CCG, or Health Board, covering the Adult Social Care Charges21. Allerton does not have a minimum number of hours of support and considers each case separately. |
| Rent & Housing | Allerton operates supported living locations but does not own the buildings; the landlord is a separate specialist housing provider. You may qualify for help through Housing Benefit (HB) or Universal Credit (UC) housing costs, which is paid directly to your landlord. If you have £16,000 or more in savings, you may not be entitled to HB and may have to pay your own rent until your savings are below that threshold. If eligible for HB your landlord may also be able to claim an allowance for utility bills, gas, electricity, council tax and internet. |
| Living Costs | Everyday expenses (food, clothing, leisure) and utility bills (gas, electricity, council tax, internet) are paid from your UC and Personal Independence Payment (PIP) benefits, if you are eligible. |
| Transport | Paid from your UC and PIP benefits, and you may qualify for schemes like a disabled person’s bus pass, railcard, Blue Badge, or the Motability Scheme (subject to PIP eligibility). |
Costs to Consider for Residential Care
If you live at a residential care location, most costs—including food, electricity, gas, and water bills—are covered by the Adult Social Care Charges. This means the resident may receive less money in benefits because they have fewer costs to cover.
Managing Finances and Decisions for Others
Capacity Assessment
If an individual does not have the capacity to manage their own affairs, there are several ways to make decisions on their behalf.
The Mental Capacity Act governs the process, requiring a mental capacity assessment, often completed by a social worker or nurse assessor. If they lack capacity, a "best-interest decision" is made involving a multi-disciplinary group and family members.
Whether an individual has capacity to manage their finances is determined early on with an assessment by your social worker and Allerton.
Options
Appointeeship: If you are only looking after someone's benefits, you can become an Appointee. This means you have the right to deal with the benefits of someone who cannot manage their own affairs. Allerton offers an appointeeship service approved by the Department for Workforce and Pensions (DWP).
Deputyship: To gain the legal power to make all decisions, you must apply to the Court of Protection to become a Deputy. This is supervised by the Office of the Public Guardian (OPG)37. Deputyship is not the same as Lasting Power of Attorney (LPA), as an LPA is only consented to in advance of a potential loss of capacity.