When families start thinking about care, there’s one question that comes up almost every time: “How do we pay for it?” It’s a completely fair thing to ask — and the good news is that the answer in Wales is better than most people expect.
Wales has its own funding system for social care, including a cap on weekly charges that makes home care here much more affordable than in lots of other parts of the UK. So let’s break it all down.
In this guide, we’ll cover local authority funding, direct payments, NHS Continuing Healthcare, Attendance Allowance, and what happens if you decide to self-fund. Whether you’re in Denbighshire, Conwy, Wrexham, or anywhere else in Wales, the basics are the same — your local authority just handles the process for your area.
Local Authority Funded Care
The most common way to get funded domiciliary care is through your local council. Under the Social Services and Well-being (Wales) Act 2014, councils have a duty to assess anyone who might need care and support, and to arrange services for those who qualify.
It starts with a care needs assessment, which is free and doesn’t commit you to anything. If the assessment shows your loved one has eligible needs, the council will then do a financial assessment (also called a means test) to work out how much, if anything, they’d need to pay towards their care.
The Financial Assessment
During this assessment, the council looks at the person’s income and savings. Here are the key things to know:
- If savings and capital are below a certain threshold, they’ll usually qualify for fully funded or heavily subsidised care.
- Some income is ignored in the calculation — for example, the mobility component of Disability Living Allowance (DLA).
- The value of the person’s home is not counted for non-residential care (that’s domiciliary care). This is a big one that catches people by surprise.
- If the person has a partner, only the individual’s finances are assessed — not the whole household’s.
The Welsh Cap on Care Charges
This is one of the biggest differences between Wales and England, and it’s really good news. The Welsh Government sets a weekly cap on non-residential care charges — a maximum that any council can charge you for domiciliary care per week. It’s been in place since 2011 and gets reviewed every year.
What does that actually mean for you? Even if your care costs several hundred pounds a week, the most you’ll ever be asked to pay is the capped amount. The council covers the rest. That’s a really significant safety net, and it makes Wales one of the most affordable places in the UK for care at home.
The cap covers all non-residential social care services, including domiciliary care, sit-in services, and day care. It doesn’t cover residential or nursing home fees — those are worked out differently.
Direct Payments
If your loved one is assessed as having eligible needs, they might be offered direct payments instead of (or alongside) services the council arranges. This means the money goes straight to them, so they can choose their own care provider and set things up in the way that works best for them.
Direct payments can be used to:
- Employ a personal assistant (PA) directly
- Pay a CIW-registered care agency such as Accredilink
- Purchase other services that meet the person’s assessed needs
There’s a bit of paperwork involved — you’ll need to keep records of how the money is spent — but many councils offer help with that, and there are payroll services set up specifically for direct payment recipients.
The real benefit here is choice and control. If it matters to you to pick exactly who provides the care and when they come, this is definitely worth discussing with your local authority.
NHS Continuing Healthcare (CHC)
NHS Continuing Healthcare is a package of care that’s fully funded by the NHS for people who have a “primary health need”. Now, that’s not quite the same as having a health condition — it specifically means the person’s main care need is health-related rather than social.
The assessment is done by a multi-disciplinary team using something called a Decision Support Tool (DST). It looks at needs across several areas — things like cognition, behaviour, mobility, breathing, and skin integrity. If your loved one qualifies, all their care — including domiciliary care — is funded entirely by the NHS. They won’t pay a penny.
And here’s a really important detail: CHC isn’t means-tested. It doesn’t matter what savings or income someone has. If their needs are primarily health-related, they could be eligible. Common conditions that can lead to CHC include advanced dementia, severe neurological conditions, and complex nursing needs.
We won’t sugar-coat it — the CHC process can be long and tricky to navigate. But if you think your loved one might qualify, it’s well worth asking for an assessment through their GP, hospital consultant, or community nurse. You can also ask us at Accredilink for a chat — we’ve helped plenty of families through the CHC process and we’re happy to share what we know.
Attendance Allowance
Attendance Allowance is a benefit from the Department for Work and Pensions (DWP) for people aged 65 or over who have a physical or mental disability that means they need help with personal care or supervision. It’s not means-tested, and it’s paid at two rates:
- Lower rate: for people who need help during the day or night
- Higher rate: for people who need help both during the day and at night, or who are terminally ill
It’s not affected by savings or income, and it’s completely tax-free. Your loved one can spend it on whatever they like — it doesn’t have to go on care, though lots of people do use it to help cover their domiciliary care costs.
Here’s a bonus: getting Attendance Allowance can actually unlock extra entitlement to other benefits too, like Pension Credit and Council Tax Reduction. It’s always worth claiming, even if your loved one is already getting council-funded care.
The application form (AA1) is a bit long, but organisations like Age Cymru and Citizens Advice can help you fill it in. And if your loved one is terminally ill, there’s a fast-track “special rules” process that can speed things up a lot.
Self-Funding Care
Some families prefer to arrange and pay for domiciliary care privately, without involving the council. There are a few common reasons people go this route:
- Wanting to get care set up quickly without waiting for an assessment
- Preferring full control over who provides the care and when
- Not qualifying for council funding because savings are above the threshold
- Wanting extra hours or services beyond what the council would fund
If you’re self-funding, it’s still really important to choose a provider that’s registered with Care Inspectorate Wales (CIW). Registration means they’re regularly inspected and have to meet national standards for quality and safety.
And remember — things can change. If savings drop below the council’s threshold, you can request an assessment at any point. It’s also worth claiming Attendance Allowance regardless, since it’s not means-tested and can help take the edge off costs.
Carer’s Allowance and Support for Family Carers
If you’re a family member providing regular care, you might be entitled to Carer’s Allowance. To qualify, you generally need to be caring for someone at least 35 hours a week, and the person you look after must be receiving certain disability benefits.
But it’s not just about money. Family carers in Wales are also entitled to a carer’s assessment in their own right. This can open the door to support services like respite care, which gives you a proper break while making sure your loved one is still well looked after. Have a read of our article on what respite care is and how it can help if that sounds useful.
Getting the Right Advice
We know this can all feel like a lot to take in. But you really don’t have to figure it out on your own. Here are some great sources of free, impartial advice:
- Age Cymru — offers a free advice line and can help with benefit claims and care funding queries
- Citizens Advice — available locally in Denbighshire, Conwy, and Wrexham
- Dewis Cymru — the Welsh directory of well-being services and information
- Your local authority — the Single Point of Access or Adult Social Care team can walk you through the process and your options
And of course, we’re always happy to have an informal chat about funding here at Accredilink. We can’t give formal financial advice, but we’ve helped lots of families get their heads around the options, and we can point you to the right people. Have a look at our funding guidance page for an overview, or get in touch to speak to one of our team.