care home costs

Care home costs

If you are looking for a care home in the UK for yourself or a loved one, you may feel concerned or confused about care home prices.

The content in this article will answer the most frequently asked questions about the UK’s care home fees. The advice on these pages will also help you navigate the process of entering the care system in the UK.

Topics you will find in this article

Who pays for care home fees?

In the UK, we are expected to pay for our own social care at home, in care homes, or in sheltered housing.

You may receive funding support depending on your finances, but if you don’t qualify you may need to pay in full. This is called being a ‘self-funder’.

Less than half of people in care homes are entirely self-funded.

How much does it cost to stay in a care home?

The cost of care homes will vary depending on several factors such as:

  • Your location in the country
  • The type and level of care you or your loved one needs
  • Whether you are eligible for financial support from the local authority

You can use this calculator tool to get an estimate of how much it will cost for your residential care home place, nursing care, or home care costs and support.

Since the amount that you are required to pay depends on details such as whereabouts in the country you live, costs can feel like a postcode lottery.

However, if you are worried about the cost of the care homes in your area, it is important to keep in mind that you may be eligible for help paying for care home fees. If paying care home fees is likely to be an issue, here is a video on how to avoid them.

What are the average care home fees?

The level of support you require will have a significant impact on the fees that you pay. This is because care providers will need to make sure they have the necessary training and equipment to give you the medical, physical, and social support you need in your day-to-day life.

However, on average, a room in a care home will cost £600 per week.

Residential care in a nursing home costs up to £1000 per week.

If meeting the long terms costs of care is a concern then you should also look at using an immediate care annuity.

Who pays for care home fees?

In the UK, we are expected to pay for our own social care at home, in care homes, or in sheltered housing.

You may receive funding support depending on your finances, but if you don’t qualify you may need to pay in full. This is called being a ‘self-funder’.

Less than half of people in care homes are entirely self-funded.

How much does it cost to stay in a care home?

The cost of care homes will vary depending on several factors such as:

  • Your location in the country
  • The type and level of care you or your loved one needs
  • Whether you are eligible for financial support from the local authority

You can use this calculator tool to get an estimate of how much it will cost for your residential care home place, nursing care, or home care costs and support.

Since the amount that you are required to pay depends on details such as whereabouts in the country you live, costs can feel like a postcode lottery.

However, if you are worried about the cost of the care homes in your area, it is important to keep in mind that you may be eligible for help paying for care home fees.
If paying care home fees is likely to be an issue, here is a video on how to avoid them.

What are the average care home fees?

The level of support you require will have a significant impact on the fees that you pay. This is because care providers will need to make sure they have the necessary training and equipment to give you the medical, physical, and social support you need in your day-to-day life.

However, on average, a room in a care home will cost £600 per week.

Residential care in a nursing home costs up to £1000 per week.

If meeting the long terms costs of care is a concern then you should also look at using an immediate care annuity.

What are the different charges for a care home?

A care home in UK will charge for a combination of these types of services:

  • Accommodation. This is sometimes called a ‘hotel cost’, and will apply to both a residential care home or a nursing care home.
  • Personal care. This covers qualified carers supporting you around the clock with tasks such as dressing, eating meals, washing, and participating in social activities.
  • Nursing care. In a nursing home, registered nurses will provide the same 24/7 support for older people with certain medical issues.

Is there a care home fees cap?

The government had previously announced plans to tackle what has been termed a crisis in social care. They were supposed to do this by introducing a cap on the amount of money a person would have to pay in care fees over their life.

However, these plans were delayed and then scrapped. So, there is no cap.

How much can you have in savings before you have to pay for care?

Your financial circumstances will determine whether or not you can access financial help towards your care costs.

If you have under £14,250 in savings, you should be able to receive full support for the cost of your care.

If you have between £14,250 and £23,250, then you will need to pay for your care but you will be able to access funding from the local council. So, if you have under £23,250 in savings and do not own your own property, then you might be able to access financial support.

You will have to pay £1 for every £250 of your savings between £14,250 and £23,250 toward the price of your care home.

If you have more than £23,250 or an income considered high enough to cover your care fees, you will be expected to pay for your care using this capital. We call this self-funding.

However, even if you have savings over the normal threshold, you may still be eligible for NHS continuing healthcare funding. This happens if your personal care needs are found to be “substantial and ongoing” during a care needs assessment from the local authority’s social services department.

How can I get help towards the cost of paying for care?

You can apply to the local council for help towards the costs of the care that you need.

When you apply for funding, your local council will carry out two assessments.

  1. A needs assessment to check what kind of care you need.
  2. A financial assessment to see whether or not you qualify for help with paying the care homes fees. During this financial assessment, the council will consider your total wealth by examining your income and capital.

If you are found to be eligible, your local council will discuss your funding options with you further.

"If you are eligible for authority funding, your local council will arrange a place in a suitable care home according to the home's rates and how much they are willing to pay towards the costs of your care."

What exactly does a financial assessment look at?

The assessment or “means test” will look at:

  • your income, including your pension and benefits
  • your capital, including your savings and any investments you have
  • the value of your property, which may include your home if you own it. The value of your house won’t be taken into account if you require care in your own home.

The authority will consider what you own now as well as what you used to own in order to work out if there has been any self-deprivation.

What is deprivation of assets?

If you deliberately spend your savings when you know that you will soon have to be paying care costs, this is known as “deprivation of assets”. This means that you have intentionally tried to avoid care home payments or reduce the amount you are required to pay.

For example, if you:

  • make a lump sum payment to somebody else, including as a gift to others
  • transfer the title deeds of your property to your child or somebody else
  • buy expensive items to try to hide your financial resources
  • spend a large amount of money from your account in a way that is out of character
  • sell your assets for less than their true value, or put them in a trust

During the means test the local authority will look at the timing, motivation and circumstances of your spending.

If they conclude that you knew you were going to need to pay care bills and were trying to avoid these care fees, then in their calculation the council will treat you as if you still own these assets . You will then likely be charged more than you can afford as a result.

What if I own my own home and don’t want to sell it?

Selling your home may be the best option if you are self-funding, but there are some other possibilities you might want to consider before you make any choices.

If you are age 55 or older, equity release services allow you to release money that’s tied up in your property without paying tax. This can help you to cover care costs, but you will have to pay interest on any money you release in this way so it can become expensive.

You can read more advice on how equity release works on this page here.

Another option is to rent out your property while you are in residential care. You can then use this source of income to help pay your care fees.

A deferred payment scheme is something else to consider.

If you have less than £23,250 in savings and all of your money is tied up in the property you own, you can ask your local council if you’re eligible for a deferred payment agreement.

In such a deferred payment scheme, the council pays the costs of your care. They do this under the agreement that you will repay the debt when you sell your home or after your death.

How much will a local authority pay for care home?

If you are eligible for authority funding, your local council will arrange a place in a suitable care home according to the home’s rates and how much they are willing to pay towards the costs of your care.

This amount varies between local councils, but if you are told that they are going to contribute towards the cost of your care, they will also let you know how much they pay. You need to speak directly to your authority in order to understand how much money they will pay.

If after research, you or your deputy are not happy with the care home the council chooses, it is within your rights to make a different choice of home as long as the rates are the same price.

What if I want to move to a more expensive home?

When you pay for care, you are able to choose to move into a different home even if it is more expensive than what the authority is willing to pay so long as you make up the difference.

This means that a friend or relative will have to pay the rest. This is called ‘third party contribution’.

For example, if the council will only pay a maximum of £500 every week and you choose a home which costs £750 a week, then you will need to arrange for someone else to pay the additional £250.

If you have the chance or capacity to do this, you can enjoy some more comfortable surroundings in the home you move into.

How can I get NHS funding?

You may be able to get financial support from the NHS continuing healthcare scheme if your care needs are considered to be significant, ongoing, and health-based. For example, if you have a disability after recovering from a stroke.

If this is the case, the NHS will pay for everything involved in your care home cost. This includes accommodation and meals, so your care home place will be free.

Unlike with local council care home funding, the NHS will not financially assess you to see if you qualify for the scheme.

Clinical Commissioning Groups (CCGs) should assess each person in their area who may need this type of care. This will usually happen if:

  • You are being discharged from hospital
  • You are having a needs assessment
  • Your needs are being reviewed while you are staying in a nursing home

However, if you did not receive an assessment when you think you should have, you can request one from a GP, social worker, or CCG.

Do you have to pay for a care home if you have dementia?

If you are looking for nursing care for a family member with dementia, you should note that dementia care is likely to be more expensive than a more standard type of care for older people. This is because dementia care requires a higher staff to resident ratio.

However, the local authority may not pay any more towards their nursing home fees than the standard rate (or ‘usual cost’) .

Again, it is important to know that the NHS may also provide financial support if the patient qualifies for their Continuing Health Scheme.

Are there any alternatives to care homes?

If the cost of care seems too high for your budget and you are not eligible for help toward the cost, you may want to consider respite care.

With some home adaptations and changes to your living arrangements, it may be possible for you to stay in your home for longer. But, this will depend on the level of care you need.

If you decide that home care is a better choice, there are some non means-tested benefits you may be able to access. Attendance Allowance and Personal Independence Payment (PIP) , for example, can be used to help you pay the cost of your care at home.

Attendance Allowance is for older people age 65 and over who need home care because of an illness or a disability. You can receive between £57.30 and £85.60 from this benefit depending on whether you need carers to come to your house for the day, the night, or both.

Other articles related to paying for care you will find useful

Paying for Care

The cost of care can be a stressful issue at a sensitive time. Funding care is an important consideration when planning your income in retirement and long term care. This article looks at the different options available.

Care Home Costs

If you are looking for a care home in the UK for yourself or a loved one, you may feel concerned or confused about care home prices. The content in this article will answer the most frequently asked questions about the UK’s care home fees. 

Home Care Costs

The cost of home care packages in the UK will depend on the number of hours that homecare services are required. This article will help you work out what your home care costs could be if you are looking for care.

Equity Release Calculator

An equity release calculator allows you to effectively ‘try before you buy’ and plan ahead. It’s a great way to see how much capital you can (and should) release from your home. This articles explains how they work.

How Does Equity Release Work?

Equity release generally involves stumping up the entirety or a portion of the value of your property in return for cash. The cash can be spent however you wish. This article looks at how it works in more detail.

Pros & Cons of Equity Release

Equity release schemes do have many benefits – but they aren’t suitable for everyone. Each individual provider and type of scheme will also have individual positives and drawbacks.  This article looks at what you need to look out for.

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