Understanding the Shared Lives Care Model
Shared Lives is a unique and personal form of care where individuals and families open their homes to support an adult with care needs. Unlike traditional care homes, it's built on the foundation of a shared life and mutual relationships. Carers, who are self-employed, welcome someone into their home either on a long-term basis, for short breaks (respite), or for daytime support. This arrangement is overseen by a local, regulated Shared Lives scheme that matches, supports, and trains carers. It's a way to provide care that feels more like a family setting, promoting independence and community integration for the person being supported.
How Are Shared Lives Carer Payments Structured?
As a Shared Lives carer, you are considered self-employed, meaning you receive fees rather than a salary. These payments are designed to cover the costs associated with caring for someone and to compensate you for your time and skills. The payment is typically broken down into three main components:
- Contribution to Living Costs: The person you support contributes to the household expenses. This covers their share of food, utilities (gas, electricity, water), and other general household costs. This amount is often paid from the person's benefits.
- Rent/Accommodation Payment: A fee is included to cover the cost of the room you provide. This portion may be covered by the individual's Housing Benefit or other benefits they receive.
- Payment for Care and Support: This is the professional fee you receive for the support you provide. This part of the payment is the most variable, as it directly reflects the level of need of the person you are caring for.
Payments are typically made by the local Shared Lives scheme, which in turn is usually funded by the local council or the NHS.
Typical Pay Rates for Shared Lives Carers
So, how much do Shared Lives carers get? The amount can vary significantly across the UK, as each local authority sets its own rates. However, for a full-time, long-term placement, a carer can generally expect to receive a weekly fee ranging from £350 to £650 per person. Some schemes with very high-need individuals may pay even more, with rates reaching over £800 per week in some cases.
Here are some examples of weekly pay bands from different councils to illustrate the variation:
- Milton Keynes Council: £565.08 to £703.92 per week for care, plus contributions for living costs.
- Medway Council: Payments are banded from £451.68 to £589.22 per week, inclusive of care, rent, and household contributions.
- Wakefield Council: Long-term placement fees range from £392.93 to £880.06 per week depending on the support band.
- Shared Lives South West: Long-term fees vary from £420 up to £673 per week.
Short breaks and day support are paid at different rates, often calculated on a nightly or hourly basis. For example, overnight support might range from £80 to £140 per night.
Factors Influencing Your Pay
Several key factors determine the specific amount you will receive:
- The Individual's Support Needs: This is the primary factor. Payments are often tiered into bands. Someone with complex health needs, significant mobility issues, or behaviours that are challenging will be in a higher payment band than someone who is largely independent.
- Location: Rates vary between different local authorities and regions in the UK to reflect the local cost of living and the structure of the local scheme.
- Type of Care Provided: Long-term placements receive a consistent weekly fee, while short-term respite care or sessional day support will be paid on a pro-rata basis.
A Major Benefit: Qualifying Care Relief (Tax Relief)
A significant financial advantage for Shared Lives carers is a special tax scheme from HMRC called Qualifying Care Relief (QCR). This scheme means that many carers pay very little or no income tax on their earnings from caring. The relief consists of two parts for the 2024/25 tax year:
- A fixed annual tax exemption of £19,360 per household.
- An additional tax-free amount of £485 per week for each adult you care for.
If your total income from caring is less than your total qualifying amount, your profits are treated as nil, and you will not have to pay tax on that income. You still need to register as self-employed and complete a tax return, but this generous relief makes it a very tax-efficient way to work from home. For more detailed guidance, you can visit the Shared Lives Plus website.
Comparison of Care Roles
| Feature | Shared Lives Carer | Live-in Carer (Agency) | Care Home Worker |
|---|---|---|---|
| Employment Status | Self-employed | Employed or Self-employed | Employed |
| Typical Gross Income | £18,000 - £35,000+ per year (often tax-free) | £30,000 - £40,000 per year (taxable) | £21,000 - £25,000 per year (taxable) |
| Work Location | Own home | Client's home | Care home facility |
| Key Benefit | Work from home, generous tax relief, build relationships | Set working patterns (e.g., 2 weeks on/off) | Regular hours, part of a large team |
| Main Consideration | Sharing your home and life, 24/7 responsibility | Living away from home, less autonomy | Shift work, high staff-to-resident ratios |
Conclusion: A Rewarding Role
Being a Shared Lives carer is more than just a job; it's a vocation that involves sharing your home and life to make a profound difference. While pay rates vary, the combination of a steady, reliable fee and the significant tax advantages of Qualifying Care Relief makes it a financially viable and rewarding career. The model provides a stable income while allowing you to work from the comfort of your own home, offering a unique blend of professional care and genuine family life.
