Who Pays For Dementia Care? Means-Tested Or Not

The short answer is that in England, NHS healthcare is free, but social care, such as help with washing, dressing, meals or a care home place, usually isn't. Who pays depends on the type of help and, for some of it, on the person's finances.

Not means-tested (NMT) help doesn't depend on income or savings. If the person meets the eligibility rules, they can receive it however much money they have.

Means-tested (MT) help does depend on income and savings. The council or the Department for Work and Pensions looks at the person's finances to decide what they receive or what they contribute.

Many families assume everything is means-tested and never ask for help they're entitled to. Others assume nothing is. Neither is true, which is why this distinction matters from the start.

Need More Personal Support?

Knowing what exists is one thing. Working out what applies to your family, filling in forms and knowing who to ask can feel like a full-time job, especially when you're already caring.

At The Care Lens, we can help you understand which support you may be entitled to, prepare for assessments and know who to speak to next. We are completely independent and take no commissions from care providers or advisers. We don't provide regulated financial advice, but we can help you understand your options and point you towards the right professionals when you need them.

Start The Conversation

These organisations are independent and keep their information up to date.

GOV.UK benefits calculators: check what you may be entitled to.

Turn2us: a free benefits calculator and grants search.

MoneyHelper: free, impartial guidance on paying for long-term care.

Age UK: clear guides on paying for care.

Alzheimer's Society: practical information on dementia and money.

Carers UK: advice and benefits information for carers.

Citizens Advice: free, confidential advice.

Society of Later Life Advisers (SOLLA): find accredited advisers who specialise in later life.

Where To Find Trusted Information

Benefits help with everyday costs, but the cost of care itself usually comes through one of three routes.

1. The NHS: Continuing Healthcare And Nursing Care

NHS Continuing Healthcare is care arranged and fully funded by the NHS for people whose main need is health-related rather than social care. It isn't means-tested, but it is only awarded to a relatively small number of people, and a dementia diagnosis alone doesn't decide it.

The assessment looks at the nature, complexity and intensity of someone's needs. It starts with a short checklist, which a health or social care professional can complete, and you can ask for one. If the checklist is positive, a fuller assessment follows. It can be repeated if needs change.

NHS-funded Nursing Care is a fixed weekly payment made directly to a nursing home. It can be paid whether the person is self-funding or council-funded.

2. The Council: Means-Tested Social Care

Surrey County Council can arrange or contribute to care at home or in a care home, but only after two steps. The first is a Care Needs Assessment, which is free and looks at what support is needed. The second is a financial assessment, which decides what the person pays.

At the time of writing (2026/27), the national rules in England say:

-savings over £23,250 usually means paying for care yourself (known as "self-funding")
-savings below £14,250 are not counted
-in between, the person contributes from savings as well as income

These limits are set nationally and can change, so always check current figures. The person's home is generally not counted when care is provided at home. If they move permanently into a care home, it is usually counted after an initial period, with some exceptions, such as when a partner still lives there. That is a common source of worry and a good reason to get advice before making decisions.

Surrey County Council explains how paying for care works and publishes average local care costs. Its Adult Social Care information and advice line is 0300 200 1005 (Monday to Friday, 9am to 5pm).

3. The Family: Self-Funding

If savings are above the limit, the person pays for their own care. That doesn't mean you're on your own. You can still ask the council for a Care Needs Assessment, claim every NMT benefit in the lists above, and ask for a Continuing Healthcare checklist.

Self-funding decisions can be large and long-lasting, so it's worth taking advice before selling a property, moving money or choosing a care home. A Lasting Power of Attorney may also need to be in place, and our guide to choosing the right care home can help when that time comes.

How Dementia Care Is Paid For: The Three Routes

Carers often focus on the person they look after and forget to ask what help is available for themselves. A free Carer's Assessment from the council is the best place to start, and the carer list above shows what else may apply.

Help For Carers: Don't Overlook Your Own Entitlements

You don't need to do everything at once. Many families find this order helps.

Start with the NMT benefits, such as Attendance Allowance or PIP, because they can be claimed straight away.

Ask for a Continuing Healthcare checklist if the person has significant or complex health needs.

Request a Care Needs Assessment, then a financial assessment if the council may be involved.

Ask for a Carer's Assessment for yourself, and check what else you may be entitled to.

Before making any big decisions about savings, property or long-term care, speak to a regulated independent financial adviser who specialises in later life.

A Sensible Order To Work Through

Here is everything worth checking, in one place. Not every item will apply to every family, and each has its own eligibility rules, so use the links to confirm.

NMT = Not means-tested (savings and income don't affect it)
MT = Means-tested (savings and/or income are taken into account)

For The Person Living With Dementia

Attendance Allowance NMT: for people at State Pension age or over who need personal care or supervision. GOV.UK

Personal Independence Payment (PIP) NMT: for people under State Pension age, including those with early-onset dementia. GOV.UK

NHS Continuing Healthcare NMT: fully NHS-funded care for people with a "primary health need". GOV.UK

NHS-funded Nursing Care NMT: a fixed weekly NHS contribution towards nursing care in a nursing home. GOV.UK

Council Tax discount or exemption (severe mental impairment) NMT: needs a GP certificate and a qualifying benefit, such as Attendance Allowance. GOV.UK

Council Tax single person discount NMT: 25% off if the person lives alone. GOV.UK

Winter Fuel Payment NMT: paid automatically at State Pension age, but HMRC takes it back through tax if income is over £35,000. GOV.UK

Blue Badge NMT: eligibility depends on how the condition affects travel, and some people with dementia qualify. GOV.UK

Disabled Persons Railcard NMT: a third off rail fares for the person and a companion.

Free NHS prescriptions NMT: free for people aged 60 and over in England. NHS

Council-funded social care MT: arranged or part-funded by Surrey County Council after a Care Needs Assessment and a financial assessment. Surrey County Council

Pension Credit MT: tops up low income at State Pension age, and can include extra amounts for severe disability and for carers. GOV.UK

Universal Credit MT: for people under State Pension age on a low income. GOV.UK

Housing Benefit MT: help with rent for people at State Pension age. GOV.UK

Council Tax Reduction MT: set by your local council, based on income and savings. GOV.UK

Warm Home Discount MT: a one-off electricity bill discount for Pension Credit recipients and some low-income households. GOV.UK

Cold Weather Payment MT: paid during very cold spells to people on certain benefits. GOV.UK

Disabled Facilities Grant MT: a grant towards adapting the home, such as ramps, stairlifts or wet rooms. GOV.UK

For The Carer

Carer's Assessment NMT: a free council assessment of your needs, which can lead to practical support such as breaks from caring. Surrey County Council

Carer's Allowance NMT: for those caring at least 35 hours a week for someone on a qualifying benefit. There is no savings test, but there is a limit on earnings. GOV.UK

Carer's Credit NMT: protects your State Pension record if you care for at least 20 hours a week and aren't earning enough to pay National Insurance. GOV.UK

Council Tax carer disregard NMT: a live-in carer (not the person's partner) giving 35 or more hours of care a week may not be counted in the household, which can reduce the bill. The person cared for must receive a qualifying benefit, such as Attendance Allowance. Apply through your local council. GOV.UK

Carer's Leave NMT: a legal right to a week of unpaid leave each year from your job to provide or arrange care. GOV.UK

Flexible working request NMT: your right to ask your employer for changes to your hours or location. GOV.UK

Free NHS flu vaccine NMT: available to many carers, including those who receive Carer's Allowance. NHS

Universal Credit (carer element) MT: an extra amount for carers of at least 35 hours a week, if your household income is low. GOV.UK

Pension Credit (carer addition) MT: an extra amount if you are of State Pension age and on a low income. GOV.UK

Council Tax Reduction MT: for your own household if your income is low. GOV.UK

Benefits And Support At A Glance

Welcome

When dementia begins to affect daily life, one of the first questions families ask is:

"How do we pay for dementia care?"

There isn't one pot of money. Funding for dementia care comes from several places, including benefits, the NHS, the council and, for many families, savings. Each has its own rules.

This guide explains who pays for what, which help is means-tested and which isn't, and where to find up-to-date information. It covers support for the person living with dementia and for the family members who care for them, with a particular focus on families in Surrey. If you're also working out who to contact first, our Dementia Support in Surrey guide explains who does what.

The Care Lens Tip:

Most families don't need to claim everything. Start with the NMT items, because savings don't matter for those, then use the GOV.UK benefits calculators or Turn2us to check the MT ones.

The Care Lens Tip:

Before claiming Carer's Allowance, check how it might affect the other person's benefits. Sometimes it can reduce certain extra amounts they receive, so it's worth getting advice first.

Benefits, NHS Funding, Council Support And Help For Carers In England

Reading time: Approximately 15 minutes

Funding Dementia Care in England: Benefits, NHS Funding & Council Support

Frequently Asked Questions

This guide has been written by The Care Lens using practical experience alongside established guidance from organisations such as the NHS, Alzheimer’s Society, Dementia UK and NICE. Every family is different, so this guide is intended to support—not replace—professional medical or legal advice where appropriate.

The Care Lens Tip

If the person's needs are increasing, ask for a Continuing Healthcare checklist rather than waiting to be offered one. It is rarely offered proactively, and you are entitled to ask.

Who pays for dementia care in England?
It depends on the type of help. The NHS pays for healthcare, and in some cases all care through NHS Continuing Healthcare. The council may pay towards social care after a means-tested financial assessment, and many families pay some or all of it themselves. Benefits like Attendance Allowance can help with costs whatever your savings.

Is dementia care free?
Not usually. NHS healthcare is free, but social care, such as help at home or a care home place, is charged unless the person qualifies for NHS Continuing Healthcare or council funding. Some benefits are paid regardless of savings, which can help cover the costs.

What benefits can you claim for dementia?

It depends on age and circumstances. Common ones include Attendance Allowance (State Pension age or over), PIP (under State Pension age), and Council Tax discounts. Carers may be able to claim Carer's Allowance and Carer's Credit. The "at a glance" lists above show each one and whether it's means-tested.

Is Attendance Allowance means-tested?
No. It isn't affected by income or savings. It depends on the help someone needs with personal care or supervision, and they must be at State Pension age or over.

Does a dementia diagnosis automatically qualify someone for NHS Continuing Healthcare?
No. Eligibility depends on whether the person has a "primary health need", which looks at the nature, complexity and intensity of their needs rather than the diagnosis alone. It starts with a checklist, which you can ask for.

How much savings can you have before you have to pay for care?
Under the national rules in England for 2026/27, savings over £23,250 usually mean paying for your own care, and savings below £14,250 aren't counted. In between, you contribute. Check current figures, as they can change.

Will we have to sell the house to pay for care?
Not necessarily. If care is provided at home, the home isn't usually counted. If someone moves permanently into a care home, the home may be counted after an initial period, but there are exceptions and options for spreading the cost. Avoid giving away money or property without advice, as councils can treat that as deliberately avoiding care costs.

Can I get paid to care for a relative with dementia?
Carer's Allowance is the main payment for unpaid carers, but it is a modest weekly benefit rather than a wage and has eligibility rules, including an earnings limit. Carer's Credit and a free Carer's Assessment may also help.

Remember

Some help depends on savings, and some doesn't. Claim the NMT help first, whatever your savings. You can ask for an assessment even if you're self-funding. Carers can get help in their own right.