Care Home Guide: Funding

This guide provides information about the financial help that may be available from the local council, for older people who have been assessed as needing care in a care home. It aims to answer some of the most commonly-asked questions.

Your local council’s social work department (or in some areas, the local health board) is responsible for assessing your need for care services and working out what financial support you may be entitled to.

A care needs assessment looks at what kind of care you need, and in what setting it can be best delivered. It is the first step in finding out what your care costs will be and whether you are entitled to financial support.

After your care needs assessment, your council will carry out a financial assessment, also known as a means test. This looks at your income and capital, and works out how much you will be expected to contribute towards your care home fees. 

In Scotland, personal care and nursing care are free to anyone who has been assessed as needing them. If the council decides that your needs can be best met in a care home, it will pay the personal and nursing care amount you are entitled to directly to the care home. You may qualify for one or both types of care.

At a minimum, you will be expected to contribute to your care home fees using your income, such as your State Pension. You may pay more if you have savings or other assets. This guide explains how care home funding works in different scenarios, including how your home will be treated in the financial assessment.