Care Home Fees UK Explained

Care home fees are one of the largest financial commitments many families will ever face. With residential care in the UK costing an average of £600 — £900 per week and nursing care £800 — £1,200 per week, a year in a care home can cost between £31,000 and £62,000 — and considerably more in London and the South East.

Understanding how care home fees work, how they are funded, and what support is available is essential for anyone planning care for themselves or a loved one. This guide explains the costs, the means-testing system, the funding options, and the key changes to care funding rules in England and across the UK.

How Much Do Care Home Fees Cost in the UK?

Care home fees vary significantly depending on the type of care, the location, and the facilities offered. Here is a realistic breakdown of UK care home costs in 2026:

What Affects the Cost?

Several factors influence how much a care home charges:

• Type of care — Nursing care costs more than residential care because it includes 24-hour qualified nursing staff.
• Location — London and the South East are significantly more expensive than the North of England, Wales, Scotland, and Northern Ireland.
• Room type — En-suite rooms, premium suites, and couples’ rooms cost more than standard rooms.
• Facilities — Homes with extensive facilities, gardens, and activity programmes may charge more.
• Level of need — Higher levels of dependency (particularly complex dementia or end-of-life care) often incur additional fees.
• Funding method — Self-funders typically pay more than local-authority-funded residents, as councils negotiate reduced rates.

Residential Care vs Nursing Care: What’s the Difference?

The distinction between residential and nursing care is important because it affects both the cost and the funding available.

Residential care provides accommodation, meals, and personal care (help with washing, dressing, toileting, and medication) for people who can no longer manage living independently. It does not include regular nursing care.

Nursing care includes everything provided by residential care, plus 24-hour care from qualified nurses. It is for people with more complex medical needs — such as those with advanced dementia, serious physical disabilities, or chronic health conditions.

Dementia care is a specialist form of care — it can be residential or nursing, depending on the person’s needs. Dementia care homes are designed and staffed specifically to support people living with Alzheimer’s and other forms of dementia, with additional security, trained staff, and sensory environments.

How Are Care Home Fees Funded in the UK?

Care home funding is complex and depends on your financial situation, your care needs, and where you live. There are three main funding routes: self-funding, local authority funding, and NHS funding.

1. Self-Funding

If your assets (including your home, savings, and investments) exceed the means-test threshold, you will need to self-fund your care.

Means-test thresholds in 2026:

If your assets are above the upper threshold, you pay the full cost of your care. If your assets fall between the upper and lower thresholds, you contribute on a sliding scale. If your assets are below the lower threshold, the local authority funds your care (subject to a care needs assessment).

2. Local Authority Funding

If your assets are below the means-test threshold, your local authority may fund some or all of your care. The process is:

1. Care needs assessment — A social worker or care professional assesses what level of care you need. This is free and available to everyone, regardless of finances.
2. Financial assessment (means test) — Your income, savings, and assets are assessed to determine how much you can contribute.
3. Personal budget — You are given a personal budget to spend on care. You can choose a care home that accepts the local authority rate, or you can “top up” the difference if you want a more expensive home (a third-party top-up, usually paid by family).

Important: Your home is included in the means test for residential care — but only after the first 12 weeks of permanent care, and it is disregarded if your partner or certain dependants still live there. If you receive care at home, your home is not included in the means test.

3. NHS Funding

There are two NHS funding routes that can cover care home fees in full:

NHS Continuing Healthcare (CHC)

NHS Continuing Healthcare is a fully-funded package of care for adults with complex, ongoing health needs. It is not means-tested — eligibility is based solely on health needs.

CHC covers the full cost of care, including accommodation, personal care, and nursing care. It is available in a care home or in your own home. To qualify, you must have a “primary health need” — assessed using a detailed framework that considers your care needs across 12 domains.

The CHC assessment process:

1. Initial screening (Checklist Assessment) — Usually carried out by a nurse or social worker.
2. Full assessment (Decision Support Tool) — A multi-disciplinary team assesses your needs in detail.
3. Decision — The local Integrated Care Board (ICB) decides whether you qualify.

CHC is not easy to qualify for — the bar is high. But if you or your loved one has complex, intense, or unpredictable health needs, it is always worth requesting an assessment. Speak to your GP, hospital discharge team, or social services.

NHS Funded Nursing Care (FNC)

If you live in a nursing home but do not qualify for CHC, you may be entitled to NHS Funded Nursing Care — a weekly contribution towards the nursing element of your care. In 2026, the weekly rate is:

• Standard band: £235.88 per week
• Higher band: £324.45 per week

This is paid directly to the nursing home and reduces your bill accordingly. It is not means-tested.

Deferred Payment Schemes

If you own a home but do not have liquid savings to pay for care, you may be able to use a deferred payment scheme. Your local authority pays your care home fees and places a legal charge on your property. The debt is recovered from your estate after your death, or when the property is sold.

Deferred payment schemes:

• Are available in England, Wales, and Scotland (rules vary)
• Help people who are “asset rich but cash poor”
• Accrue interest (set by the local authority, capped by government)
• Give you time to sell a property without having to do so in a rush

This can be a lifeline for people who want to stay in their own home or delay selling it, while still receiving the care they need.

Benefits That Can Help With Care Costs

Even if you are self-funding, you may be entitled to certain benefits that can help offset care costs:

Attendance Allowance is particularly important — it is not means-tested and is available to anyone over State Pension age who needs help with personal care, including people in care homes who self-fund. If you qualify for the higher rate, it adds over £5,600 per year to your income.

The 12-Week Property Disregard

In England, if you enter a care home permanently and your property is counted as part of your assets for the means test, the value of your home is disregarded for the first 12 weeks of your stay. This gives you time to arrange your affairs — sell the property, set up a deferred payment scheme, or explore other funding options — without immediately being treated as a self-funder.

During this 12-week period, if your other assets are below the threshold, the local authority may fund your care. After 12 weeks, your property is included in the means test unless your partner or a qualifying dependant still lives there.

Care Home Fees: Key Things to Check Before You Choose

Before committing to a care home, check:

1. What’s included in the weekly fee? — Meals, personal care, activities, laundry, and nursing care should be clearly itemised.
2. What’s extra? — Hairdressing, newspapers, outings, chiropody, and some therapies may be charged separately.
3. What happens if your needs increase? — Will the fee increase? How much notice will you get?
4. What happens if your money runs out? — Can the local authority take over funding? Will you need to move to a cheaper home?
5. What are the contract terms? — Read the contract carefully. What is the notice period? What are the cancellation terms?
6. Is the home regulated? — In England, the Care Quality Commission (CQC) inspects and rates care homes. Check the latest CQC rating at cqc.org.uk. Equivalent bodies regulate care in Scotland (Care Inspectorate), Wales (Care Inspectorate Wales), and Northern Ireland (RQIA).

Care Home Fees: Frequently Asked Questions

Do I have to sell my home to pay for care? Not necessarily. If your partner or certain dependants live there, your home is disregarded. You may also be able to use a deferred payment scheme to delay sale, or arrange a financial plan that avoids immediate sale. Always take independent financial advice.

Is care free at the end of life? If you have complex, ongoing health needs, you may qualify for NHS Continuing Healthcare, which covers the full cost of care. Hospice care is also usually provided free of charge. Speak to your GP or hospital team.

What is the difference between residential and nursing care? Residential care provides accommodation and personal care (washing, dressing, meals). Nursing care includes 24-hour qualified nursing staff for people with more complex medical needs.

How do I get a care needs assessment? Contact your local authority’s adult social services department and request a care needs assessment. This is free and available to everyone, regardless of financial situation.

Where to Get Free Help and Advice

Care home funding is complex, and the rules change frequently. Always seek free, impartial advice before making decisions:

• Age UK — Free advice on care funding, benefits, and assessments. Call 0800 169 6565 or visit ageuk.org.uk.
• Citizens Advice — Free advice on benefits and financial support. Visit citizensadvice.org.uk.
• MoneyHelper — Free, impartial money guidance. Visit moneyhelper.org.uk or call 0800 138 7777.
• Care Quality Commission — Check care home ratings and reports at cqc.org.uk.
• Independent Age — Free advice for older people. Visit independentage.org or call 0800 319 6789.

Planning for care home fees early — before a crisis hits — gives you the most options and the best chance of protecting your assets. Take advice, understand your rights, and never assume you have to pay for everything yourself until you have been assessed.

Ready to compare? Get free funeral plan quotes

Disclaimer: Funeral plans are regulated by the FCA. Only FCA-regulated providers offer Financial Services Compensation Scheme protection. For free information about funeral costs, contact Age UK (ageuk.org.uk, 0800 169 6565).