If someone you love has received a serious or terminal diagnosis, one of the questions that surfaces quickly is: who is going to pay for their care? It is a reasonable and important question, and the answer is often more reassuring than families expect.
In most cases, the NHS bears significant responsibility for palliative care costs. For those whose needs are primarily health-related, the NHS may fund everything. For others, local authority support, non-means-tested benefits, and charitable funding can substantially reduce or eliminate what families pay privately. Even self-funders in nursing homes receive an NHS contribution each week.
Family members are not automatically liable for a loved one’s palliative care costs. Unless you have signed a contract agreeing to pay, their finances are assessed separately from yours.
This guide explains every funding route available for palliative care in England in 2026, in plain language, so that families can approach these decisions with confidence rather than fear.
At Merling Care, we provide palliative care across Glebe House in Staines and Moorland House in Barton-on-Sea. We are experienced in supporting families through every aspect of the funding process.
In England, palliative care is funded through a combination of NHS funding, local authority support, non-means-tested benefits, charitable contributions, and in some cases private self-funding. The NHS is often the primary funder, particularly where care needs are primarily health-related. Family members are not legally responsible for funding a loved one’s care.
The funding picture for palliative care is more generous than many families realise. The most common sources are:
Yes, in many cases. Palliative care provided in an NHS hospital is free as part of universal NHS coverage. Palliative care delivered by district nurses, specialist palliative care nurses, and community healthcare teams is also NHS-funded and free to the patient.
For people in care homes or receiving care at home, the NHS contribution depends on the nature of their needs and which funding route they qualify for.
NHS Continuing Healthcare (CHC) is a package of care arranged and fully funded by the NHS for people whose primary need is a health need. It covers all costs, including accommodation and food in a care home, with no means test. It is the most significant form of NHS funding available for palliative care.
People receiving palliative care often qualify for CHC because their needs are, by definition, primarily health-related. The assessment evaluates 12 care domains including pain management, breathing, nutrition, cognition, and skin integrity. Where needs are complex, intense, unpredictable, or severe across multiple domains, CHC is likely to be awarded.
Crucially, CHC eligibility is not based on a specific diagnosis. A person receiving palliative care for advanced cancer, motor neurone disease, advanced dementia, or heart failure may all qualify, depending on the nature and complexity of their day-to-day needs.
Where CHC is awarded, it replaces all other funding. Local authority contributions stop. Personal contributions stop. The NHS funds everything.
We explain CHC in full detail in our guide: NHS Funding for Care Homes: FNC and CHC Explained.
Fast Track CHC is a separate, accelerated pathway within the standard CHC process, specifically designed for people with a rapidly deteriorating condition who may be approaching the end of their life.
A clinician, typically a GP, hospital consultant, or specialist palliative care nurse, completes a Fast Track referral form confirming that the person’s condition is deteriorating rapidly and that a full standard assessment would not be appropriate given the urgency of the situation. The relevant Integrated Care Board (ICB) is then required to put funding in place quickly, typically within 48 hours of the referral being submitted.
Fast Track CHC covers the full cost of care, including a care home placement, in the same way as standard CHC. It does not require the person to go through the standard 12-domain Decision Support Tool assessment first.
Fast Track CHC is one of the most important and underused tools in palliative care funding. If a loved one’s condition is deteriorating and you feel care cannot wait for a standard CHC process, it is always worth asking the GP or palliative care team whether a Fast Track referral is appropriate. The request can come from the family.
For people in a care home already, the care home’s nursing team can also initiate a Fast Track referral. At Glebe House, our registered nurses work closely with GPs and ICBs to ensure Fast Track referrals are made promptly when indicated.
If a person does not qualify for CHC but is resident in a registered nursing care home, the NHS contributes a weekly flat rate towards nursing costs through NHS-Funded Nursing Care (FNC).
From 1 April 2026, the FNC standard rate is £267.68 per week, paid directly to the care home. This payment is not means-tested, so it applies to both self-funders and local authority-funded residents. It reduces the effective weekly cost of care without requiring any application for means-tested support.
FNC applies to anyone in a registered nursing home who has been assessed as needing nursing care. It is particularly relevant for people receiving palliative care, because palliative conditions commonly require registered nursing input.
Glebe House is registered for nursing, meaning eligible residents can receive FNC as part of their care funding package.
If CHC is refused but nursing needs are clear, FNC should automatically be assessed and awarded. A refusal of CHC is not the end of the funding conversation.
Two non-means-tested DWP benefits are available to help with the costs of palliative care, depending on the person’s age.
Attendance Allowance is available to people who have reached State Pension age and need help with personal care or supervision due to illness or disability. It is not means-tested, so income and savings do not affect eligibility.
From April 2026, the rates are:
Under the DWP Special Rules for terminal illness, a person expected to live for 12 months or less automatically qualifies for the higher rate of Attendance Allowance. There is no six-month qualifying period. The claim is fast-tracked, and a doctor or nurse completes a form SR1 to support the application.
Attendance Allowance is tax-free and can be spent however the person chooses, including towards private care costs, specialist equipment, or home adaptations. It can also trigger additional entitlement to other benefits, including Pension Credit and Housing Benefit.
Note that Attendance Allowance usually stops after 28 days if the person moves into a care home and the local authority contributes to their costs. People who are fully self-funding in a care home can continue to receive it.
For people under State Pension age, Personal Independence Payment (PIP) is the equivalent non-means-tested benefit. PIP has a daily living component and a mobility component. Under the Special Rules for terminal illness, the claim is fast-tracked at the enhanced rate.
The government is proposing significant changes to PIP eligibility from November 2026 for new claimants, with a requirement to score at least four points in a single daily living activity. Existing claimants should not be affected immediately. Families should seek current advice from Macmillan Cancer Support, Citizens Advice, or a benefits specialist if a claim is being considered.
If a person does not qualify for NHS Continuing Healthcare, they may still receive local authority support towards the cost of their palliative care, depending on the outcome of a means test.
The means test applies the same capital thresholds used for all residential and nursing care:
For palliative care in a care home, the means test includes the value of the person’s property, subject to the standard disregard rules, including the 12-week property disregard that applies from the start of a permanent placement.
A social worker or GP can refer to the local authority for a care needs assessment and financial assessment. Families can also contact the adult social care team directly.
We cover the full means test framework in our guide: Who Pays for Care Homes? Funding and Local Authority Support Explained.
In most cases, yes. Hospice care in the UK is provided free at the point of use for patients, regardless of their financial circumstances or where they live.
Hospices are funded through a combination of NHS commissioning, charitable donations, and fundraising. The Government announced £100 million in capital funding for hospices in late 2024, with £75 million distributed in the financial year 2025 to 2026 via Hospice UK for building upgrades, facilities improvements, and digital infrastructure investment.
The level of NHS funding hospices receive varies significantly between regions. Many hospices rely heavily on charitable income to sustain their services. This means access to hospice care, and the range of services available, can differ depending on where you live.
Hospice care is a setting in which palliative care is delivered, most commonly for people in the later stages of a life-limiting illness. It is not the only setting for palliative care. Palliative care can equally be delivered at home, in a care home, in a nursing home, or in hospital.
Several major charities provide funded palliative care services and financial assistance:
Marie Curie provides free nursing care at home and in its own hospices for people with terminal illness. Marie Curie nurses can care overnight in the home, giving families a break and allowing people to remain in familiar surroundings. Marie Curie’s services are available without charge to the patient, funded through NHS contracts and charitable fundraising.
Macmillan Cancer Support provides financial grants to people with cancer who are struggling with the costs associated with their diagnosis, including equipment, home adaptations, and heating costs. Macmillan’s helpline also offers specialist benefits advice to help people claim everything they are entitled to.
Hospice UK works with NHS England and ICBs to support the hospice sector nationally, and distributes government capital grants to individual hospices.
Other condition-specific charities, including the Motor Neurone Disease Association, Dementia UK, and the British Heart Foundation, provide specialist support and in some cases direct financial assistance for people with those conditions.
A personal health budget is an amount of money allocated by the NHS to support a person’s health and care needs outside of hospital. NHS England has identified personal health budgets as a key tool for improving palliative and end of life care, within the framework of the Ambitions for Palliative and End of Life Care.
Personal health budgets give people greater control over how their care is arranged and funded. Rather than receiving a standard package of services, the person (or their family) can decide how the budget is spent, within an agreed care plan. This could include funding home adaptations, specialist equipment, additional nursing visits, or complementary therapies.
To explore whether a personal health budget is available in your area, speak to the GP or palliative care team, or contact the local ICB directly.
If a person’s capital exceeds £23,250 and they do not qualify for NHS Continuing Healthcare, they will be expected to fund their palliative care privately. However, self-funding does not mean funding without support.
Self-funders in a registered nursing home still receive the FNC contribution of £267.68 per week from the NHS, paid directly to the care home. They may also be entitled to Attendance Allowance (if over State Pension age and paying all fees privately) or PIP. Charitable support remains available regardless of financial circumstances.
When self-funding, families should ask any care home what is included in the weekly fee and what attracts additional charges. Some homes charge separately for items such as hairdressing, outings, or incontinence products. Understanding the full cost picture upfront avoids unexpected bills.
If a person’s assets reduce to below £23,250 during a palliative care placement, the local authority becomes responsible for contributing. It is important to contact the adult social care team as this threshold approaches, rather than waiting until assets are exhausted.
A refusal of CHC does not mean there is no NHS support available. The following steps are worth taking:
Research consistently shows that CHC is frequently under-awarded at first assessment. Many people who are initially refused CHC succeed on appeal. Given the financial significance of CHC funding for palliative care, an appeal is almost always worth pursuing.
At Merling Care, we work closely with GPs, district nurses, specialist palliative care nurses, and Integrated Care Boards to help residents access every form of funding they are entitled to. We believe no family should face financial uncertainty on top of everything else they are already managing.
Our team at Glebe House is experienced in supporting CHC and Fast Track assessments, liaising with ICBs, and ensuring that FNC is in place for all eligible nursing residents. Moorland House works closely with community nursing and palliative care teams across Hampshire.
Both homes hold CQC ratings of Good, and both have supported many families through palliative and end-of-life care with the understanding, calmness, and kindness that defines everything we do.
To find out more about palliative care at Merling Care, or to discuss funding options with our team, please get in touch:
Or contact us online to arrange a visit.
You can also read more about the care we provide at Merling Care, and about life in our homes.
No. Unless a family member has signed a contract agreeing to pay, they have no legal obligation to fund a loved one’s care. A person’s care costs are assessed against their own finances, not those of their family.
Not usually. If CHC is in place and the NHS is fully funding a care home placement, Attendance Allowance typically does not apply, as the care needs are being met by the NHS. However, Attendance Allowance can be relevant where care is provided at home and the person is self-funding or receiving local authority support.
It can, depending on the level of nursing and clinical input required. A palliative placement in a nursing home registered for nursing care may attract the FNC contribution, reducing the net cost. Families should always ask for a written breakdown of what is included in the fee.
The SR1 is a medical evidence form completed by a GP, hospital doctor, or registered nurse to support a fast-tracked benefits claim for someone who is terminally ill. It confirms the terminal diagnosis and expected prognosis. Completing an SR1 allows Attendance Allowance and PIP to be claimed immediately at the higher rate, without waiting for the standard qualifying period.
If the person cannot manage their own finances or make decisions about their care, a family member or other representative with Lasting Power of Attorney for property and financial affairs can act on their behalf. If no LPA is in place, a deputyship order from the Court of Protection may be required. It is important to seek legal advice early if capacity is becoming an issue.
Hospice care is typically free at the point of use, funded by the NHS and charities. In a care home, the funding picture depends on the person’s capital, whether they qualify for CHC or FNC, and whether the home is registered for nursing. The principles of CHC and FNC apply to care homes; hospice care operates outside the standard means-testing framework.
Macmillan Cancer Support’s financial guidance line (0808 808 00 00) provides free specialist benefits and funding advice. Age UK, Citizens Advice, and the National CHC Alliance also offer free guidance. The Society of Later Life Advisers (SOLLA) can refer families to accredited financial advisers specialising in care funding.