NHS and Local Authority Funding for Dementia Nursing Care: What You Need to Know

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NHS and Local Authority Funding for Dementia Nursing Care: What You Need to Know

When a loved one is living with dementia and requires nursing-level care, one of the first questions families ask is: Who pays for it? Unlike standard healthcare, the funding for dementia nursing care in the UK is complex, involving a combination of NHS Continuing Healthcare, local authority financial assessments, personal contributions and potential top-ups.

This article explains the key funding pathways, how eligibility is assessed, and what families should expect when navigating the system.

Understanding NHS Continuing Healthcare (CHC)

NHS Continuing Healthcare (CHC) is a package of care fully funded by the NHS for individuals who have a primary health need. This means the NHS covers the full cost of nursing home care if the person’s needs are assessed as primarily medical rather than social.

When CHC May Apply:

- Mid to late-stage dementia with complex behavioural symptoms.
- Frequent medical intervention required.
- Unpredictable, high-risk health conditions.
- Deteriorating physical health linked to dementia.

Eligibility is determined through a multidisciplinary assessment, not the diagnosis itself. It is possible for two individuals with the same dementia diagnosis to receive very different funding outcomes depending on the nature, intensity, complexity and unpredictability of their needs.

Local Authority Funding and Means Testing

If someone is not eligible for NHS Continuing Healthcare, funding may be provided by the local authority. This depends on a financial assessment (means test), which looks at income, savings and assets.

General Principles:

- Individuals with savings and assets above a certain threshold are expected to contribute more.
- Those below the lower threshold may receive significantly more support.
- If the person owns a home, the value may be considered depending on whether a spouse or dependent still lives there.

Local authorities may contribute toward the care home fees, while the individual pays the difference.

Which Funding Path Applies?

Funding Type	Who Qualifies?	What It Covers
NHS Continuing Healthcare (CHC)	Individuals with a primary medical need requiring ongoing clinical support.	Full cost of nursing care, accommodation and medical support.
Local Authority Funding	Individuals without primary medical needs who meet financial eligibility criteria.	Contribution toward care costs, based on means-testing.
Self-Funding	Individuals whose assets/income exceed local authority thresholds.	Full cost of care paid privately, with potential top-ups for enhanced services.

Key Steps for Families

Request a Needs Assessment
Contact the local authority to evaluate care requirements and support options.
Request a CHC Assessment if Needs Are Primarily Health-Related
A full CHC assessment should be considered if the individual has complex, unpredictable or intensive health needs.
Prepare Financial Documentation Early
This helps avoid delays and ensures clarity in discussions.
Review Eligibility Regularly
Dementia is progressive. Funding status may change over time.

FAQ

Does dementia automatically qualify someone for NHS Continuing Healthcare?

No. Eligibility is based on health need, not diagnosis. Dementia alone does not guarantee funding.

Can someone move from local authority funding to NHS Continuing Healthcare later?

Yes. As needs become more medical and complex, eligibility can change.

What if the family disagrees with a CHC decision?

There is a formal appeal process. Medical evidence and care records are often key in challenging decisions.

Can a person still choose their care home if the local authority contributes?

Yes, but the care home must agree to accept the funding rate, and there may be additional top-up fees.

Is financial help available for home-based dementia care?

Yes. Local authorities can fund care-at-home packages if the person is eligible after a needs assessment.

Need help finding a care home?

Senior Home Plus offers free personalized guidance to help you find a care facility that suits your health needs, budget, and preferred location in the UK.

Call us at 0203 608 0055 to get expert assistance today.