Concerns over growing numbers and proportions of older people in indus
trialised societies have prompted interest in the development of cheap
er ways of providing long-term care for older people. While debate in
the UK is currently focused on the costs of residential and nursing ca
re, other European and Nordic countries have introduced schemes design
ed to encourage or sustain the provision of 'social' care by family me
mbers, friends and 'volunteers', on the assumption that this can be pr
ovided at lower net public expense than either residential care or for
mally-organised domiciliary services. Drawing on material from a detai
led comparative study, this paper describes four different models on w
hich such payments are currently based. These models are discussed and
evaluated, taking into account factors which include the eligibility
criteria for payments; maximising the autonomy of older people and fam
ily care-givers; and the relationships between financial payments and
access to services. These models locate systems of payment within the
broader context of financial and service support designed to help frai
l older people and those who support them. They therefore highlight th
e importance of considering both financial support and services in com
parative studies of social welfare provision. However, further evaluat
ion and policy development is hindered by the lack of evaluation of di
fferent models of paying for care and a lack of evidence about the exp
eriences of older people and care-givers.