Why care funding is under pressure – and what it means for personal injury claimants and their care costs

For those who have received a personal injury settlement, the ability to access state-funded care has long been an important safety net. But that safety net is fraying. With rising demand, tighter eligibility criteria, and underfunded local authority budgets, many people with disabilities are finding it increasingly difficult to access the support they need.

If you’re a claimant, deputy or trustee responsible for managing a personal injury award, these changes have serious implications. The financial plan you put in place today may need to stretch further tomorrow, especially if you’re required to self-fund care that was once available through council and NHS funded care.

This means it’s more important than ever to plan for precisely this kind of uncertainty. By combining robust cashflow modelling with appropriate investment strategies and a focus on liquidity, you can build a plan that allows your finances to adapt, even as council and NHS funded care becomes more unreliable.

The squeeze on adult social care is no longer a future concern, it’s happening now. The latest data from Age UK¹ and the Association of Directors of Adult Social Services (ADASS) Spring Survey² shows:

• Fewer people are qualifying for Continuing Healthcare (CHC) funding
• Local authority budgets are stretched beyond breaking point
• Families are increasingly forced to bridge the gap, either financially or through unpaid care

This is particularly stark for individuals with complex, lifelong needs, the very people personal injury settlements are designed to support. Yet even with a significant award, there’s growing pressure on these funds as more is needed to supplement or replace services that should, in principle, be state funded.

Against this backdrop, sound financial planning becomes essential. Without it, there’s a real risk that funds meant to last a lifetime could run short.

That’s why we focus on three pillars in managing settlement funds for the long term:

1. Cashflow modelling for clarity and foresight

Cashflow modelling helps you project future income and expenditure based on various care needs and scenarios. It gives claimants, deputies and trustees a clear view of:

How long a settlement is likely to last under current and projected costs

The potential impact of inflation in care fees

Scenarios where public support may reduce or be withdrawn entirely

By stress-testing your financial plan against these variables, we can build in buffers and contingency strategies, helping you make informed decisions early, rather than reacting under pressure later.

2. Investment strategies that balance growth and security

Investing a personal injury award isn’t about chasing high returns. It’s about preserving capital, generating sustainable income, and ensuring flexibility. We help clients structure their portfolios to reflect:

Short-term needs (such as accessible housing, equipment, or therapy)

Medium-term requirements (like consistent care provision, contingency funds and lifestyle costs)

Long-term security (particularly important for younger claimants with lifelong needs)

We also work with investment committees and trustees to incorporate ethical or faith-based considerations. The value of an investment, and the income from it, may go down as well as up and you may get back less than you originally invested.

3. Maintaining liquidity to meet care needs as they change

Liquidity (the ability to access funds quickly and without penalty) is crucial in the current care environment. Whether it’s an urgent reassessment of care needs, new equipment, or changes in eligibility for public support, you need the confidence that their money is available when they need it.

That’s why we work closely with clients and legal representatives to keep some assets in accessible, lower-volatility holdings. We also review portfolios regularly to ensure they continue to align with changing care needs and financial priorities.

As the gap between public provision and real-world care needs continues to widen, the burden of funding is falling more heavily on claimants and their representatives. This makes the role of financial planning more vital than ever.

At Evelyn Partners, we’re here to help you prepare. Whether you’re a claimant managing your own affairs or a deputy acting in someone else’s best interests, our goal is the same — to ensure that your settlement delivers long-term security, even in an increasingly unpredictable care environment.