Care home contracts: which clauses should you check?
By CareFinder Team · Published 2026-06-30 · Last reviewed 2026-09-18
Before signing a care home contract, check what the weekly fee covers, how and when fees can rise, who is legally responsible for paying, the notice each side must give, what is charged after a death, and what happens if savings run out. Consumer law requires fair, clear terms, so you can ask for changes and should never sign under pressure.
Before signing a care home contract, check exactly what the fee covers, how and when it can rise, who is legally responsible for paying, the notice both sides must give, what happens after a death, and what changes if savings run out. Consumer law requires terms to be fair and clear, so you can ask for changes, and you should never sign under pressure.
Why does the contract matter so much?
A care home contract sets out what your relative pays, what they receive and when either side can end the arrangement. Mistakes are hard to undo once someone has moved in and cannot easily move again.
Care homes that contract with self-funding residents must follow consumer law, including the Consumer Rights Act 2015, which makes unfair terms unenforceable. The Competition and Markets Authority (CMA) investigated the sector and in 2018 published advice setting out care homes' obligations: homes should give clear information about fees and important terms early, use fair terms and have an easy-to-use complaints procedure. The CMA's care homes consumer protection case page holds the full advice.
If the council arranges and funds the place, the contract is usually between the council and the home, and your relative's or your own obligations are set out separately, for example in a top-up agreement.
This is general information, not legal advice. For a contract you are unsure about, ask a solicitor who specialises in older people's law, Citizens Advice or Age UK.
What does the fee cover?
Ask for the weekly fee in writing and a list of what is and is not included.
- Commonly extra: hairdressing, chiropody, newspapers, toiletries, private phone lines, escorts to hospital appointments and some trips.
- One-to-one care: is extra staffing charged on top if needs increase?
- Room type: does the fee depend on the room, and can the home move your relative to another room?
- Nursing contribution: in a nursing home in England, check how NHS-funded nursing care is shown on the invoice.
A clear written breakdown now avoids disputes over the first invoice.
How can fees go up?
This is one of the most important clauses. Look for:
- how often fees are reviewed (often once a year)
- how much notice you will get of an increase
- the basis for increases, such as a stated index or specific cost changes
- whether you can leave without penalty if you do not accept an increase
Be wary of terms that let the home raise fees at any time, by any amount, without explanation. Terms like this may be unfair under consumer law.
Who is legally responsible for paying?
Read carefully who the contract names as the person who must pay.
- The resident is normally the person who contracts for their own care.
- An attorney or deputy can sign on the resident's behalf. Under a registered lasting power of attorney for property and financial affairs, sign clearly "as attorney for" your relative. That way you act for them rather than taking on the debt personally. GOV.UK explains lasting powers of attorney.
- A guarantor promises to pay if the resident does not. Only agree if you fully accept that personal risk.
- A third-party top-up payer agrees to pay the difference between the council's rate and the home's fee, usually under a separate agreement with the council.
If the wording is unclear, ask the home to change it to show the capacity in which you are signing.
What happens if savings run out?
In England, for 2026/27, someone with capital above £23,250 usually pays their own fees. When savings are nearing that level, ask the council for a financial assessment in good time, because it may take several weeks.
Ask the home, before you sign:
- Will you accept the council's rate when the council starts paying, or will a top-up be needed?
- Can my relative keep the same room?
- What happens if no one can pay the top-up?
Get the answers in writing. Scotland, Wales and Northern Ireland use different capital limits.
Trial periods, notice and ending the contract
Check three things:
- Trial period. Many homes offer a settling-in period during which either side can end the arrangement on short notice.
- Notice your relative must give to leave, and whether fees are payable during it.
- Notice the home must give, and the reasons it can ask your relative to leave.
Fair reasons for a home to end a placement usually include that it can no longer meet your relative's needs, persistent non-payment after warnings, or serious risk to others. The contract should require consultation, reasonable notice and help to find somewhere suitable. Be cautious of vague grounds or very short notice.
Fees after death
The CMA took action against homes that charged fees for long periods after a resident died. Its advice for self-funded contracts is that a home may charge either for a short fixed period of up to three days after the death, or until the room is cleared, with a backstop of no more than ten days. Fees paid in advance beyond that period should be refunded promptly, normally within 28 days. One large provider agreed with the CMA to charge fees only up to the date of death.
Question any clause that charges a full notice period after death or keeps charging until belongings are removed with no time limit.
Deposits and upfront fees
The CMA challenged large compulsory upfront fees charged to new residents. Check:
- whether a deposit is required and the exact conditions for getting it back
- whether there are "administration", "assessment" or "community" fees, what they pay for and whether they are refundable
- whether fees are payable in advance, and for how long
Changes in care and moving rooms
- How often will the care plan be reviewed, and how will you be involved?
- What happens to the fee if your relative needs nursing or more support?
- Can the home move your relative to a different room, and on what basis?
- What happens if your relative becomes eligible for NHS Continuing Healthcare, which pays the full fee?
Belongings, money and complaints
- Belongings: what is the home responsible for, and do you need your own insurance for valuable items?
- Personal money: how is it held and recorded, and how can you see the records?
- Liability: a term cannot exclude the home's liability for death or personal injury caused by negligence.
- Complaints: the contract should explain the home's procedure. In England, self-funders and council-funded residents can take unresolved complaints to the Local Government and Social Care Ombudsman. Scotland, Wales and Northern Ireland have their own public services ombudsmen.
Frequently asked questions
Do I have to sign as a guarantor?
No. A home may ask, but you can refuse or ask for the term to be removed. If you manage your relative's money under a lasting power of attorney, sign clearly as attorney so you act on their behalf rather than taking on the debt yourself.
Can a home charge fees after a resident dies?
Only for a short, clearly stated period. CMA advice for self-funded residents suggests any fixed period after death should be no more than about three days, and advance payments beyond that should be refunded.
Can the home put fees up whenever it likes?
Increases should follow the contract: a clear basis, a set timetable and reasonable notice. A term allowing unlimited increases at any time without reason is likely to be challengeable as unfair.
What if my relative's money runs out?
Contact the council before capital falls to the upper limit so a financial assessment can be carried out. Check in advance whether the home accepts the council rate or will need a top-up, and whether your relative can stay in the same room.
Where can I get the contract checked?
A solicitor specialising in older client law, Citizens Advice or Age UK can help. Ask the home for the full contract in advance and take time to read it; a reputable home will not rush you.
Key takeaways
- Get the full contract and a written list of what the fee includes before moving in.
- Check how, when and by how much fees can rise.
- Sign as attorney, not in your own name, unless you mean to accept personal liability.
- Ask what happens when savings run out and whether a top-up will be needed.
- Check notice periods, eviction grounds and any fees after death against the CMA's advice.
- Ask for unfair or unclear terms to be changed, and get advice if in doubt.