Here’s a handy overview:
The cost of care – who pays?
When the time comes and you need help with your day-to-day care, contact your local authority to get a needs assessment done so they can work out what level of care you need.
Needs assessments are free, anyone can have one and you can find out more about them here
After a needs assessment is carried out, your local council might pay for some or all of the cost of your care, but it depends on things like:
how much care you need
how much you have in savings
At the moment you might qualify for help with care costs from your local council if you have £23,250 or less in savings, but that’s set to increase to £100,000 in October 2025.
how much you earn, if you’re still working
how much you can afford
Your local authority will work out if you need to pay money towards your care costs or if they’ll fully fund it, by assessing your financial situation. This is called a financial assessment and is a type of means testing.
You can read more about the financial assessment here and you can find up-to-date information on contributing to the cost of homecare on the NHS website, here
If it’s decided that you qualify for funding help from your local authority, you’ll usually receive a personal budget that’s paid into your bank account. Some councils pay care costs themselves then send you a bill every month.
What other financial help am I entitled to?
When your dementia progresses you might be entitled to benefits. Find out more about what benefits you might be entitled to here but these might include Disability Living Allowance, Personal Independence Payment and Attendance Allowance as well as Carer’s Allowance. There are also grants available. Call Age UK on 0800 678 1602.
You can also ask for a free home assessment where an occupational therapist comes to your home and looks at recommendations for equipment and adaptions that will help you to live independently and safely.
If these recommendations cost less than £1,000, you’ll get them for free and might include things like walking aids, ramps for easier access, grab rails and an intercom. You can read more about these here
What if I don’t qualify for help with care costs
If you’re deemed to have too much in the way of savings, income, pensions or assets you will have to self-fund your care. You can see a rough guide to costs below, depending on the type of care you choose.
It’s also worth noting that some insurance policies cover care costs, so before you pay your own costs check out your policies covering:
Life insurance
Health
Personal income protection
What are the types of care to consider?
It’s worth having a think about the type of care you might prefer in the future and having an open and honest conversation with loved ones about it, bearing in mind your financial situation and personal circumstances.
Care at home
If you choose to have someone coming to your home to help you with day-to-day living tasks in future years, this can be organised through your local council and is called homecare or domiciliary care.
This can be fully funded by your council or part-funded, if you qualify for help after a financial assessment and are given your personal budget.
Costs for homecare vary by area but a private carer or care agency will charge you between £15 and £30 per hour.
Live-in care
As your dementia progresses you might feel more comfortable, safe and secure if you have round-the-clock care at home. Again, charges will vary depending on where you live and the level of care you need, but can cost anywhere between £800 to £1,600 per week if you fund this yourself.
Supported living
Some people move to assisted living or supported living accommodation. This means living independently but with staff on hand to help with dressing, personal hygiene, medications etc. Meals are often provided and laundry and housekeeping services are often available. Some assisted living providers also have regular activities and social events, too.
Costs for this kind of supported living with care range between £500 and £1,500 per week. There are often additional costs, too, such as insurances and food, so you have to read the small print carefully before committing.
Moving to a care home
Residential care is expensive. Fees vary widely, depending on the type of care home you choose, where it is, the type of care you need and who owns it. Some care homes are run by local councils, some are privately owned and others are run by charities. You might receive funding or part-funding from your local authority. In some cases the NHS might fund your stay.
You can do a quick check on the average cost in your area by putting your postcode in here but as a quick comparison, it costs around £64,376 a year for care in a residential home in London and £48,984 in the north east.
If you decide that residential care is best for you in the long term and will be paying for the fees yourself, speak to an expert to get financial advice. Call Money Helper on 0800 111 3797 and find a specialist care fees adviser so you can discuss your funding options.
Download our Care Planning Toolkit
Read more on choosing a care provider
Speak to an expert
For help with planning your care costs and finding out more about assessments and processes, try calling these advice lines:
Age UK 0800 678 1602
Independent Age 0800 319 6789
Money Helper 0800 111 3797
The Family Rights Group 0808 801 0366