Discussing care and financial planning for a loved one can be among the most challenging conversations a family ever has. The subject of care home fees often adds to this stress, with many people feeling overwhelmed by the complexity of the costs and the different funding options available.
Our guide offers a clear and comprehensive resource to help you understand the landscape of care home fees in the UK, and how much you could expect to pay for nursing home fees to secure the best possible care for your family member, without unnecessary financial strain.
Key takeaways:
It is important to understand that these figures are just averages, and the cost of care homes varies widely depending on several factors, including:
In some areas, particularly London and the south-east, costs can be 20-30% higher than the national average. For weekly residential care costs, for example, you may expect to pay the following fees on average:
Care home fees can also differ across regions of the UK, with each nation having its own specific rules regarding property and income assessments. The amount you have above certain thresholds will dictate the extent of your responsibility for fees.
If the local council is helping to pay your care home fees, you will typically have to contribute most of your income, with the exception of small Personal Expenses Allowance (currently £30.65 per week).
While personal and nursing care is free in Scotland, you may still need to pay for other costs associated with care homes.
If you’re getting funding support from your local authority, you may need to contribute most of your income, with the exception of Personal Expenses Allowance (£35.90 a week in Scotland).
The level of care someone needs can drastically change the cost of a care home. Generally, if a person’s care requires more staff or specialised teams, such as a dementia care home, the family can expect to pay a higher weekly fee than those looking for more middle-of-the-road residential care. A thorough care needs assessment should be carried out to determine the precise care needs of an individual and the cost of care required.
Higher-quality care generally costs more, as specific factors such as the quality of facilities, the ratio of experienced staff, the level of individualised care provided, and the availability of specialised equipment or activities all increase operational costs for the home, directly impacting the price residents pay. Luxurious environments or the inclusion of pets and higher standards of food and activities are often linked to higher fees.
Your personal finances will directly influence how much you need to contribute to your care home costs. This is determined through a financial assessment, which examines your income and capital, including savings, investments, and property, to decide if you are eligible for local authority funding or must pay the full fees yourself.
Most families will have to contribute some of their income towards their care home fees, whether that is from capital, savings or income contributions. It’s important to note that some amounts are exempt from this calculation, including:
You will still have enough remaining income to cover your Personal Expenses Allowance; however, the exact amount you are left with will vary depending on where you live.
If you’re facing financial difficulties or ongoing property costs, your local council may increase your Personal Expenses Allowance.
Standard care home fees in the UK are designed to cover the core services required for a resident’s day-to-day wellbeing. However, what’s included can vary significantly between care homes, and there are almost always additional costs for certain services. It’s essential to understand both what’s covered and what isn’t before signing a contract.
The primary purpose of a care home fee is to provide a safe, supportive, and comfortable environment for residents. As such, the following services are usually covered:
It is a common mistake to assume the standard care home fee is all-inclusive, as many services are charged separately. These can quickly add up, so it’s vital to get a clear list from the care home.
Common extra costs include:
To avoid paying any hidden fees, be sure to ask for a detailed breakdown of all standard and additional charges from your chosen care home.
When a person needs residential care, their finances are assessed to determine who will pay for the cost. There are two primary routes: self-funding or local authority funding.
You are considered a ‘self-funder’ if your capital (savings, investments, and in some cases, your property) is above the upper financial threshold. In England, this figure is currently £23,250. If you’re a self-funder, you are responsible for paying your care home fees in full until your capital falls below this threshold.
If your capital is below the upper threshold, your local authority will conduct a financial assessment to determine how much, if any, they will contribute. If your capital is between the upper and lower thresholds (£14,250 in England), you will be expected to pay a portion of your care home costs. Once your capital falls below the lower threshold, the local authority will pay the full cost of the care they deem necessary, although you may still need to contribute from your income.
It’s crucial to get a care needs assessment from the local council, even if you expect to be self-funding. This helps to determine the level of care required and can be a useful benchmark when discussing fees with potential care homes.
NHS Continuing Healthcare (NHS CHC) is a care funding option for adults with complex, long-term health conditions, and is arranged and paid for by the NHS. It covers the full cost of a person’s care, including care home fees, if they are assessed as having a ‘primary health need’.
Eligibility for NHS CHC is not based on a specific diagnosis or condition, such as dementia or multiple sclerosis. Instead, it is based on a comprehensive assessment of a person’s overall care needs. You have a ‘primary health need’ if the main reason you require care is to address or prevent health needs, rather than social or personal care needs.
The assessment for a primary health need focuses on the following four characteristics:
How to apply for NHS Continuing Healthcare
The assessment process is usually done in two stages:
Based on the DST, the MDT will make a recommendation on whether you are eligible for NHS CHC funding to your local Integrated Care Board (ICB).
What happens if you’re eligible?
If you’re found to be eligible for NHS CHC, the ICB is responsible for arranging and fully funding your care home costs, whether that’s in a care facility or in your own home. In a care home, this means the NHS will pay the full care home fees. The funding is not means-tested, so your financial situation is not taken into account.
What happens if you’re not eligible?
If you are not eligible for NHS CHC, you may still be eligible for NHS-funded nursing care if you live in a care home that is registered to provide nursing care. This is a flat-rate contribution from the NHS towards the cost of your registered nursing care. This funding is also not means-tested.
For other social care costs, you may be assessed by your local council to see if they can provide funding, which is typically means-tested.
NHS-Funded Nursing Care (FNC) is a weekly, flat-rate contribution from the NHS towards the cost of care homes for people who live in a facility that is registered to provide nursing care. It is a separate funding stream from NHS CHC and is designed for individuals who have a registered nursing need, but do not meet the full eligibility criteria for NHS CHC.
Here are the key aspects of NHS FNC:
Eligibility
How it works
The NHS pays a set, weekly amount directly to the care home. This payment is specifically for the costs associated with the nursing care provided by a registered nurse. This can include a range of services, such as:
Key features
Comparison to NHS Continuing Healthcare
It is important to understand the difference between FNC and NHS CHC:
Third-party payments, often referred to as ‘top-up fees’, are a specific type of funding arrangement for care home costs in England. They come into play when a person is eligible for financial support from their local authority to pay for their care home fees, but they choose a care home that is more expensive than the amount the local authority is willing to pay.
Here’s a breakdown of how they work:
The local authority’s role
What is a ‘top-up fee’?
A ‘top-up fee’ is the difference between the local authority’s standard rate and the actual fee charged by the chosen care home.
For example, if the local authority’s standard rate is £800 per week, but the care home you choose charges £1,000 per week, the top-up fee is £200 per week.
Who pays the top-up?
The key feature of a third-party payment is that the person receiving the care cannot usually pay the top-up fee themselves from their own income or savings (except in very specific circumstances, such as during a 12-week property disregard period or under a Deferred Payment Agreement).
Instead, the payment must be made by a ‘third party’, which is typically a family member, friend, or a charity. This is a voluntary arrangement.
This is one of the most common and distressing questions families face when determining the cost of a care home. The value of your home will be included in the financial assessment unless certain people are still living in it. The value is disregarded if a spouse, a partner, a close relative who is over 60, or a disabled family member (a dependent) continues to live there.
If none of these exemptions apply, you may be offered a Deferred Payment Agreement. This is a legal arrangement with the local authority that allows you to delay paying the full costs of your care until after your death. The local authority essentially lends you the money to pay for care, and the loan is repaid from your estate when your property is sold. This means you do not have to sell the home during your lifetime.
Whether your local council will pay for your care home fees depends on two main assessments: a care needs assessment and a financial assessment (or means test). The council will first determine if you need to be in a care home to meet your social care needs. If you do, they will then assess your financial situation, including your income and savings. In England, if your savings and capital are above £23,250, you will be expected to fund your own care. If they are below this amount, the council will provide some or all of the funding, based on a detailed calculation of your financial resources.
In the UK, there is currently no maximum or lifetime cap on the amount an individual may have to pay for care home fees. The amount you pay towards care home fees is determined by a financial assessment. If your capital is above the local authority’s upper capital limit, you are considered a self-funder and must pay the full cost of your care. Proposed reforms that would have introduced an £86,000 lifetime cap on care costs were a key policy in recent years, but have since been officially scrapped. Therefore, for self-funders, the amount they have to pay for care can be substantial and continue for the duration of their care needs.
Yes, care home fees are generally set to rise across the UK. A combination of factors, including increasing staff wages, higher operating costs for energy and food, and inflationary pressures, consistently increase the cost of care homes. While the exact amount of the increase can vary by region and provider, both local authorities and private residents are facing these rising costs.
Some benefits can help with care home costs, but this depends on your personal circumstances and how your care is funded. If you’re a self-funder, you can keep most benefits, such as Attendance Allowance, Disability Living Allowance (care component), or Personal Independence Payment (daily living component), and use this money towards your fees. However, if your care home fees are paid for by your local authority or the NHS, these disability benefits will typically stop after the first 28 days of your stay. Other benefits, such as your State Pension, are usually included in the council’s financial assessment, and a portion of this income will be used to contribute to your care costs.
Don’t let the complexities of care home costs delay your search for the perfect, supportive environment for your family member. Take the next step toward peace of mind and discover the exceptional care and community we offer at Dunham Care Homes. Contact our friendly team today to schedule a personal viewing of our facilities or to get detailed, transparent information tailored to your specific financial and care needs. Our team are here to help you navigate this important decision.
