Understanding the different funding sources
Last updated: July 23, 2026
Overview
Funding sources identify who is paying for a resident's care and under what funding arrangement. In Found, funding sources are attached to billing contracts and their individual subscriptions, giving your team a clear picture of how each resident's fees are being funded.
Funding sources are part of the Pro Billing module. They appear when creating or editing a billing contract and are used to categorise income by type across your reporting.
What is a funding source?
A funding source is the payer type or funding arrangement behind a billing contract subscription. A single billing contract can support multiple funding sources (for example, a resident whose fees are split between a local authority and assessed client contribution). Each individual subscription within that contract is then assigned one funding source.
Available funding sources
Found supports the following funding sources, grouped by the type of funder:
Individual funders
Funding source | Description |
Private contribution | Fees paid directly by the resident or their family from private funds |
Top-up contribution | An additional private payment made on top of a local authority or public funding rate to cover the full care fee |
Client contribution | A means-tested contribution paid by the resident from their own income or assets |
Lifestyle supplement | An optional charge for lifestyle or amenity extras above the standard care fee |
1:1 care | Fees for dedicated one-to-one care support hours |
Annuity | Fees paid from an annuity or insurance product held by the resident |
Local authority funders
Funding source | Description |
Local authority contribution | The standard funded rate paid by a local authority for a resident's care placement |
Local authority 12-week disregard | A time-limited local authority contribution during the first 12 weeks of a permanent care placement, where the resident's property is disregarded for means testing |
Local authority deferred payment agreement | A local authority contribution where fees are deferred and secured against the resident's property, to be repaid later |
Free personal and nursing care (FPNC) | A Scottish-specific payment covering both personal care and nursing care at no cost to the resident |
Free personal care (FPC) | A Scottish-specific payment covering personal care at no cost to the resident |
Funded nursing care (FNC) | An NHS contribution toward the nursing element of a resident's care |
NHS funders
Funding source | Description |
NHS continuing healthcare (CHC) | Full funding of a resident's care by the NHS, where the individual has been assessed as having a primary health need |
1:1 care | Fees for dedicated one-to-one care support hours funded by the NHS |
How funding sources work in Found
On a billing contract
When you create a billing contract using the Pro Billing module, you select one or more funding sources that the contract will support. The available options are filtered automatically based on the type of organisation linked to the contract:
No organisation (individual payer) — shows private funding sources (private contribution, top-up, client contribution, lifestyle supplement, 1:1 care, annuity)
Local authority — shows local authority and NHS continuing healthcare sources
NHS trust / NHS board / NHS ICB — shows NHS continuing healthcare and 1:1 care
On a billing contract subscription
Each subscription within a billing contract is assigned a single funding source. This allows a contract to split fees across different payers — for example, a resident may have one subscription for their local authority contribution and a separate subscription for a client contribution and top up.
Frequently asked questions
Q: Can a resident have more than one funding source? A: Yes. A billing contract can include multiple funding sources, and each subscription within that contract is assigned its own funding source. This supports split-funding arrangements, such as a local authority contribution combined with a client contribution.
Q: Why can't I see all funding sources when creating a contract? A: The funding sources available depend on the type of organisation linked to the billing contract. For example, NHS continuing healthcare only appears when the organisation is an NHS trust, NHS board, or NHS ICB. If you cannot see the funding source you need, check that the correct organisation type is selected.
Q: What is the difference between free personal care (FPC) and free personal and nursing care (FPNC)? A: Both are Scottish government-funded arrangements. Free personal care (FPC) covers personal care tasks only. Free personal and nursing care (FPNC) covers both personal care and nursing care for residents who require registered nursing. The appropriate option depends on the resident's assessed care needs.
Q: What is the difference between a top-up contribution and a client contribution? A: A client contribution is a means-tested payment made by the resident from their own income or assets, typically in addition to the local authority contribution. A top-up contribution is an additional private payment made by a third party to bridge the gap between the funded rate and the full care fee.
Q: What is NHS continuing healthcare (CHC)? A: NHS continuing healthcare is a package of care arranged and fully funded by the NHS for individuals whose primary need is a health need. It is assessed against a national framework and, if awarded, covers the full cost of the resident's care. It is distinct from funded nursing care (FNC), which only covers the nursing component.
Q: What is funded nursing care (FNC)? A: Funded nursing care is a weekly payment made by the NHS toward the cost of nursing care provided by a registered nurse within a care home. It is separate from NHS continuing healthcare and is paid in addition to, not instead of, local authority or private funding.
Q: Is the Pro Billing module required to use funding sources? A: Yes. To use Funding sources you will need to be on the Pro Billing module. To upgrade please reach out to our support team
Q: Can a subscription have no funding source assigned? A: Yes. The funding source on a subscription is optional. However, assigning a funding source ensures accurate reporting and income categorisation across your billing reports.
Q: Who should I contact if I need a funding source that is not listed? A: Contact your Found account manager or support team. New funding source types require a product change and cannot be added directly within Found.