Published: June 2026 | Local Care Funding Guide
One of the first questions families ask when arranging care is simple:
“How will we pay for it?”
Care funding in England can feel confusing at first. There are assessments, savings limits, council contributions, NHS funding routes and private payment options to understand. The good news is that once you know the basic steps, the process becomes much easier to manage.
This guide is written for families in Portsmouth, Hampshire and surrounding areas who are planning care at home and want to understand what support may be available.
The First Step: Request a Care and Support Assessment
Before any funding decision is made, the person needing support should have a Care and Support Assessment through their local council.
For local families, this will usually be arranged through Portsmouth City Council or Hampshire County Council, depending on the person’s address.
This assessment looks at the person’s care needs, daily routine, health, safety, mobility, personal care, social wellbeing and ability to live independently at home.
The assessment is free. It is about understanding what help is needed, not just what the person can afford.
If eligible care needs are identified, the council will create a care and support plan. This plan explains what support is required and helps decide what funding may be available.
It is important to remember that having care needs does not automatically mean care will be free. A separate financial assessment, often called a means test, will usually be completed.
How the Financial Assessment Works
A financial assessment looks at the person’s income, savings and assets.
This may include:
State pension or private pension
Benefits
Savings
Investments
Property
Other regular income
In England, care funding is usually based on national capital thresholds.
Current capital thresholds in England
Below £14,250
Savings below this amount are usually ignored. The person may still contribute from their income.
Between £14,250 and £23,250
The council treats part of the savings as weekly income. This may increase the amount the person contributes.
Above £23,250
The person will usually be treated as able to pay the full cost of their care. This is known as being a self-funder.
Will the Value of the Home Be Counted?
For care at home, the person’s main home is usually not counted in the same way it may be for residential care.
If residential or nursing care is needed later, property rules may become more relevant.
The home may be disregarded in certain situations, for example if a spouse, partner, dependent child or qualifying relative continues to live there.
Because property rules can be complex, families should always ask the council for written guidance based on their individual situation.
Local Council Support
If the person meets both the care needs criteria and financial criteria, the local council may contribute towards the cost of care.
The council will calculate a personal budget. This is the amount considered necessary to meet the person’s eligible care needs.
There are usually two main ways support can be arranged.
Council-arranged care
The council arranges care through approved providers. This can be helpful for families who want the council to manage the process.
Direct payments
Direct payments give families more control. Instead of the council arranging everything directly, the person receives an agreed amount of money to help arrange their own care and support.
This can be useful when someone wants a more personalised care arrangement, familiar carers, flexible timings or support that fits closely around their normal routine.
Direct payments must be used properly and in line with the person’s care plan, but they can offer much more choice and independence.
NHS Continuing Healthcare
Some people may qualify for NHS Continuing Healthcare, often called CHC.
This is different from council-funded social care.
NHS Continuing Healthcare is a package of care arranged and funded by the NHS for people whose main needs are health-related. It is not based on savings or income.
This means that if someone is eligible, their care may be fully funded by the NHS.
Eligibility is not based on a diagnosis alone. It depends on the nature, intensity, complexity and unpredictability of the person’s needs.
Families can ask for a Continuing Healthcare checklist if they feel the person’s needs are mainly health-based.
NHS Funded Nursing Care
If someone is not eligible for full NHS Continuing Healthcare but still needs nursing care, they may qualify for NHS Funded Nursing Care.
This is a contribution paid by the NHS towards nursing care. It usually applies when a person is living in a nursing home, rather than standard care at home.
It is still worth understanding, especially if care needs may increase over time.
Self-Funding Care
Many people in Portsmouth and Hampshire pay for some or all of their own care.
Being a self-funder does not mean having fewer options. In many cases, it can mean more flexibility.
Self-funded clients can usually choose:
The care provider they prefer
The number of care hours
The timing of visits
The type of support included
How care is adapted over time
Common ways families fund care include:
Savings
Pension income
Family contributions
Investments
Equity release or lifetime mortgage advice
Deferred payment options, where appropriate
Before making major financial decisions, it is sensible to speak with an independent financial adviser who understands later-life care planning.
Understanding Top-Up Payments
Sometimes the council may agree to fund care, but the preferred provider charges more than the council’s usual rate.
In that situation, a family member or another third party may be asked to pay the difference. This is often called a top-up payment.
Before agreeing to any top-up, families should understand:
How much the weekly difference is
Whether the amount may increase
Who is responsible for paying it
What happens if the top-up can no longer be paid
It is always best to get the details in writing.
Practical Steps for Families
If you are just starting the process, these steps can help.
1. Request a Care and Support Assessment
Do this before the situation becomes urgent. Early planning gives families more time and more choice.
2. Prepare financial information
Gather details of savings, income, pensions, benefits, debts and property ownership.
3. Ask about NHS Continuing Healthcare
If care needs are complex or mainly health-related, ask whether a CHC checklist should be completed.
4. Compare care options
Look beyond the hourly rate. Consider consistency, kindness, communication, flexibility and whether the provider can meet the person’s individual needs.
5. Ask providers the right questions
Useful questions include:
Do you work with self-funded clients?
Do you accept direct payments?
Can care be adapted if needs change?
Will the same carers visit regularly?
How do you involve families?
What happens if extra support is needed?
Local Support in Portsmouth and Hampshire
Portsmouth City Council and Hampshire County Council both provide information about adult social care, financial assessments and direct payments.
Families should check the correct council based on the person’s home address, as processes and local arrangements may vary.
If you are unsure where to begin, start with the council’s adult social care team and request an assessment.
Final Thought
Funding care is the practical side of planning, but it should always support the bigger goal: safe, respectful and personalised care.
The aim is not simply to find the cheapest option. It is to find care that feels right, works well and helps the person remain comfortable, connected and supported.
Whether care is council-funded, NHS-funded, part-funded or privately funded, families should feel informed, involved and in control.
Care should fit around the person, not the other way around.
