Caring for someone when they are living with dementia, or nearing the end of their life can feel overwhelming.

Alongside the emotional weight, many families find themselves navigating complex financial decisions – often at a time when they have very little energy to spare. In this guide, we’ll walk you through the financial support options available to you, including how to access them. We understand that you are potentially treading uncharted waters, so don’t do everything at once. Use this guide as a reference point you can come back to when the time is right.

What care options are available when looking after a loved one?

There is no “one size fits all” approach to care. The right approach depends on your loved one’s needs, preferences, and on how much support you can realistically provide, given your life’s other commitments.

A live-in carer can help with:

• Personal care (washing, dressing, toileting)
• Medication prompts and monitoring
• Meal preparation and household tasks
• Mobility support and falls prevention
• Companionship and emotional support
• Specialist support for conditions such as dementia, Parkinson’s, stroke recovery and more

Because your carer lives with you, there is always someone there to provide reassurance and support, day and night.

Typical Cost of Live-in Care in the UK (2025)

In 2025, most UK live-in care providers charge somewhere between £1,100 and £2,000 per week for a single person, depending on the level of need, location and provider model. Highly specialist or complex packages can cost more.

Care at home (Hourly or Live-in)

Care provided at home can often be supported by benefits such as Attendance Allowance, PIP, or Local Authority funding. NHS Continuing Healthcare may also fund care at home for people with complex health needs.

Home care allows funding to be directed towards specific hours of support, and packages can be adjusted as needs change.

Care homes

When care needs become more intensive, some families consider residential care. In these cases, Local Authority funding may contribute depending on savings and assets, while NHS Continuing Healthcare can cover full costs if eligibility criteria are met.

The financial assessment process is different for care homes and may involve property considerations.

What financial support is available? (April 2026-2027 rates)

The UK system offers several forms of financial help to carers looking after loved ones, but it’s not always easy to understand what applies to your situation. We’ve listed some of the main forms of financial help to carers and people needing care.

Attendance Allowance (AA)

Attendance Allowance is a tax-free benefit for people over State Pension age who need help due to long-term illness or disability, including dementia and other life-limiting conditions. To qualify, you must have needed help with personal care or supervision for at least 6 months, or be terminally ill.

It is not means-tested and can be used flexibly (whether that’s for home care, supporting family carers, or to cover additional living costs. 

2026–2027 weekly AA rates:

• Lower rate: £76.70
• Higher rate: £114.60

The rate depends on whether support is needed during the day, night, or both.

How to apply

You can apply by downloading a form from GOV.UK or by calling the Attendance Allowance helpline on 0800 731 0122. The form can feel long, but it’s important to describe the help your loved one needs on their worst days, not just their best. If they are capable, your loved one can also apply for this funding themself.

Personal Independence Payment (PIP)

This non-means-tested benefit is available for people aged 16-64 who need help with daily living or mobility due to illness or disability. It is paid weekly and can be paid at different rates depending on the need. 

2026-2027 weekly PIP rates: 

• Daily Living
  • Standard: £76.70
  • Enhanced: £114.60

• Mobility
  • Standard: £30.30
  • Enhanced: £80.00

Some people receive PIP support for daily living, mobility, or both, and the funding can be used to contribute towards home care costs or help with day-to-day expenses caused by illness.

How to apply

Applications for PIP start with a phone call to the Department for Work and Pensions (DWP) on 0800 121 4433. This can be done by your loved one or you, on their behalf. You’ll then complete a form explaining how your loved one’s condition affects everyday life. 

The individual must have had their difficulties for at least three months, and expect them to continue for at least another nine months.

Carer’s Allowance

For people who provide at least 35 hours of care to a loved one per week, Carer’s Allowance may be available. It’s a weekly payment of £86.45 for the 2026-2027 tax year, and is designed to recognise the financial impact caring can have on your own work and income.

How to apply

Applications can be made online through GOV.UK. Claiming Carer’s Allowance can affect other benefits, so be sure to check your eligibility before applying.

Local Authority Funding

Your local council may be able to contribute to the care costs of your loved one if they meet the eligibility criteria. The funding will be paid to your loved one, either as a personal budget or direct payment. 

There are two assessments: 

• A Care Needs Assessment will need to take place first so the council can better understand what support your loved one needs.
• A Financial (means) Assessment, which is a means test that assesses income and savings. If savings are below £23,250, the council may contribute towards care.

How to apply

Contact your local council and ask for a Care Needs Assessment. If eligible, this may be followed by a means-tested financial assessment. If approved, council funding can be used to support home care, live-in care, or care home costs, depending on the assessed needs.

NHS Continuing Healthcare (CHC)

For those with complex, ongoing health needs, NHS Continuing Healthcare may be available. This is fully funded care provided by the NHS that is not means-tested and can be used to fund care at home, in a care home, or other settings.

NHS Continuing Healthcare is particularly relevant for people with advanced dementia, severe neurological conditions, or end-of-life care needs. It can cover all care costs, whether your loved one is at home or in a care setting. CHC is paid by your local Integrated Care Board (ICB) directly to the care service provider to cover your loved one’s care.

Eligibility is based on the level and complexity of health needs, not diagnosis or financial circumstances.

How to apply

To apply, speak to your loved one’s GP, district nurse, or hospital team and ask for an NHS Continuing Healthcare Assessment. The process can feel daunting, but families are entitled to request a review, so it’s always worth considering.

Fast-tracked benefits for end-of-life care

If someone is believed to be in the last year of their life, certain benefits (such as Attendance Allowance or PIP) can be fast-tracked under special rules, meaning quicker decisions and higher rates. 

How to apply

A healthcare professional can start the process by completing a medical form to support your claim for your loved one. This allows benefits to be processed quickly, reducing stress during an already difficult time.

Council tax reductions and exemptions

Some households can reduce or remove council tax bills when someone has a severe mental impairment, such as advanced dementia. If your loved one qualifies, they may be disregarded for council tax. This can reduce the bill by 25% or more if your loved one lives alone, or lead to a full exemption in some cases.

Council tax reductions need to be supported by eligibility for specific disability benefits, such as Attendance allowance or PIP, to qualify. Many families are unaware of this reduction, but it can make a meaningful difference.

How to apply

You or your loved one, if they have capacity, can apply for the exemption through your local council. You will need to request a Severe Mental Impairment (SMI) disregard from the council to access the claim form. You will also need a medical professional to provide a written diagnosis to support and confirm the impairment.

Charitable grants and other support

Some charities also provide grants to people with specific illnesses or those enduring financial hardship. Macmillan Cancer Support, Parkinson’s UK, and Alzheimer’s Society have all been known to offer small grants or hardship funds. Applications usually require proof that you have claimed all eligible state benefits. 

Local branches of Age UK, Citizens Advice, and organisations such as Mencap can also help you complete benefit forms and identify grants that may be available. 

How benefits interact with each other

One of the most confusing areas is how benefits affect one another.

For example:

• Claiming Carer’s Allowance can affect means-tested benefits.
• Attendance Allowance does not reduce income-based benefits directly, but may increase entitlement in some cases.
• Moving into residential care may change which benefits continue.

Before applying, check how one benefit may impact another. If you’re unsure, seek advice from Citizens Advice or a welfare rights advisor.

Useful entitlement calculators and resources

To understand what you may be entitled to, you can use:

• https://www.gov.uk/benefits-calculators
• AgeUK benefit calculator
• Citizens Advice

These tools ask about income, savings, and circumstances, while providing tailored guidance. They cannot replace formal advice, but they provide a helpful starting point.

Common mistakes and pitfalls to avoid

When applying for financial support, families often:

• Understate care needs on forms
• Apply too late for fast-tracked benefits
• Miss council tax reductions
• Assume they are not eligible because they own property
• Fail to request a Carer’s Assessment
• Do not challenge CHC decisions
• Forget to check how benefits interact with each other
  

Taking some time to understand the system can prevent unnecessary financial strain.

Financial and legal planning

When someone you love is living with dementia or a serious illness, or even approaching the end of their life, planning ahead can feel uncomfortable. But it can also bring peace of mind. 

Putting arrangements like Lasting Power of Attorney in place ensures trusted family members can look after finances and make care decisions if capacity changes. Speaking to a solicitor or later-life financial advisor may help you understand care costs and protect your loved one’s wishes.

This is particularly important for people living with dementia, where decision-making capacity may change over time.

Putting it all together

Our step-by-step checklist can help you get things moving.

1. Speak to your loved one’s GP or health professionals to access NHS services
2. Contact your local council for a Care Needs Assessment
3. Apply for Attendance Allowance, PIP, or Care Allowance
4. Consider applying for benefits under special rules if your loved one is nearing the end of life
5. Explore council tax reductions
6. Consider NHS Continuing Healthcare
7. Review legal arrangements
8. Plan for funding any shortfall, with independent financial advice, if necessary
9. Seek help and advice to understand care options and funding options
10. Be wary of scams and financial abuse, and seek advice if you suspect your loved one is being targeted

Taking the next step

Navigating care and finances is hard, especially when emotions are running high. It’s ok to feel unsure, tired, or overwhelmed. Support exists because this process is complex. If you’re not sure where to start, speak to a care advisor.
For early planning, learn how care services work at TrustonTap

Financial support FAQs

Who actually receives funding – me or my loved one?

In most cases, the funding is awarded to the person receiving care, not the carer. However, as a family member, you can help to manage your loved one’s money, arrange care, and act on their behalf where needed. 

The exception to this is Carer’s Allowance, which is paid directly to the carer.

Can benefits be used towards external care costs?

Yes. benefits such as Attendance Allowance and PIP are paid directly to the individual and can be used flexibly, including to help pay for care at home. These benefits are not means-tested and do not depend on income or savings.

Is there help if my loved one has dementia specifically?

Absolutely. Dementia is recognised as a long-term condition, meaning your loved one may be eligible for Attendance Allowance, PIP, Local Authority-funded care, or NHS Continuing Healthcare (in advanced cases). 

What support is available at the end of life?

When someone is approaching the end of life, support is often increased. This can include fast-tracked benefits, NHS Continuing Healthcare, community nursing, and palliative care. Home care providers can also offer practical support to help you in the final stages of your loved one’s life, ensuring comfort for everyone.