Demographic ageing is increasing pensions, health and social services spending and threatening the future balance of public budgets. Providing home care can help to curb health expenditure and it may improve elderly welfare also, but EU states have chosen different policies in providing home are. Main differences are related with source of financing and eligibility criteria but also with the kind of benefits (benefits in cash or in kind). How these different options affect welfare and carers’ employment opportunities is the core of this research. Home care growth is going to be more efficient as far as it pro motes employment and, public revenues consequently. Using microdata from the European Community Household Panel, British and Spanish means tested programs are compared with German and Austrian ‘in cash’ benefits, and with Danish ‘in kind’ benefits also. The results show that Danish policies are the most efficient and equitable while the British and Spanish ones are the worst.