How much does a care home cost in the UK, and who pays?
By CareFinder Team · Published 2025-10-19 · Last reviewed 2026-09-18
Care home fees vary widely with location, the type of care (residential, nursing or dementia) and the room, so the only reliable figure is a written quote from each home. Who pays depends on a council means test: in England for 2026/27, people with more than £23,250 in capital, which can include their home, usually pay in full. Scotland, Wales and Northern Ireland have different rules, and the NHS pays for some health needs.
There is no single price for a care home. Fees depend mainly on where the home is, whether your relative needs residential, nursing or specialist dementia care, and the room they choose, and people who pay for themselves are often charged more than councils pay for the same bed. Whether your relative pays in full, in part or not at all is decided by a means test, and the rules differ between England, Scotland, Wales and Northern Ireland.
This guide explains how costs and funding work. It is general information: figures change every April, and decisions about property and savings are worth taking with personal advice.
What affects how much a care home costs?
The main factors are:
- Type of care. Residential homes help with everyday tasks such as washing, dressing and meals. Nursing homes also provide 24-hour care from registered nurses, so they usually cost more. Specialist dementia care can cost more again.
- Location. Fees tend to follow local property and staffing costs, so they vary a great deal between and within regions.
- The room and facilities. Size, an en-suite, a view or a larger suite can all change the price.
- Your relative's needs. Many homes set the fee after their own assessment, and may review it if needs increase.
- Who is paying. Councils negotiate their own rates. When the Competition and Markets Authority studied the market, it found that in 2016 self-funders paid on average about 41% more than councils for places in the same homes.
Because published "average" figures use different sources and years, treat them as a rough guide only. Ask each home for a written quote, and ask your council what it usually pays for your relative's type of care.
What should the weekly fee include, and what costs extra?
Most weekly fees cover the room, meals and drinks, personal care, laundry, heating and lighting, and a programme of activities. Items that are often charged separately include hairdressing, chiropody, newspapers, a private phone line, trips out, and a staff escort to hospital appointments.
Consumer law helps here. The CMA's guide for residents says homes should give you key information upfront, on their website and at your first call or visit, including:
- an indication of the weekly fee for people paying for themselves;
- what the fee includes, and any additional or optional charges;
- any upfront payments, such as a deposit;
- how fees might rise during a stay;
- whether the home accepts council-funded residents.
Before you sign, ask for the standard contract and check how fees are reviewed, the notice period, and what happens if your relative's money runs out. A contract giving the home an unlimited right to raise fees is likely to be unfair.
Who pays for a care home in England?
In England, the council first assesses care needs, then carries out a financial assessment (means test) of income and capital. For 2026/27, the capital limits are unchanged:
- Above the upper limit of £23,250: your relative normally pays the full fee.
- Between £14,250 and £23,250: they pay from income, plus a contribution from capital worked out as £1 a week for every £250 between the limits.
- Below £14,250: they pay only what they can afford from income.
When the council helps, your relative keeps a weekly personal expenses allowance, which rises each April.
Does the house count?
For a permanent move into a care home, the value of your relative's home usually counts as capital. There are important exceptions:
- it is ignored for the first 12 weeks of a permanent stay (the "12-week property disregard");
- it is ignored while a partner, a close relative aged 60 or over, or a relative who is incapacitated still lives there.
If most of your relative's money is tied up in the house, the council can offer a deferred payment agreement. The council pays the fees and recovers the money later, usually when the home is sold or from the estate. Interest and fees can apply. The NHS advises contacting the council about three months before savings are likely to fall below the upper limit.
What if you choose a more expensive home?
If the council is paying, it must offer at least one suitable home that is affordable within your relative's personal budget. If you choose a home that costs more, someone, usually a family member, may be asked to pay a "top-up". Make sure the payer can afford it for the long term before agreeing.
How is it different in Scotland, Wales and Northern Ireland?
- Scotland. Personal care is free for anyone assessed as needing it, whatever their age, income or savings. In a care home, the council pays a set weekly amount towards personal care, and towards nursing care if needed. Accommodation costs are means-tested, with Scotland's own capital limits set each April.
- Wales. Wales has a single, higher capital limit for residential care: at the time of writing, people with more than £50,000 may have to pay the full cost. Below that, the council helps, and your relative contributes from income.
- Northern Ireland. The local Health and Social Care Trust carries out the assessment. The capital limits and property rules are similar to England's, including the 12-week property disregard, and the Trust pays a weekly amount towards assessed nursing needs.
Does the NHS pay anything towards care home fees?
Sometimes, and it is worth checking before paying privately.
- NHS continuing healthcare (CHC). People whose needs are mainly health needs can have their care fully funded by the NHS, including the care home fees. It is not means-tested. Ask for a CHC assessment, especially before or after a hospital stay.
- NHS-funded nursing care. In England, if your relative lives in a nursing home and is assessed as needing care from a registered nurse, the NHS pays a flat weekly rate directly to the home towards that nursing. The rate is set each April, so check the NHS website for the current figure, and check that the home's invoice shows it.
- Benefits. Attendance Allowance is not means-tested. It can usually continue for people paying all their own care home fees, but usually stops when the council funds the placement.
How can families plan ahead?
- Ask for a needs assessment, even if your relative will pay privately. It sets out the care they need and starts the council's involvement.
- Ask about CHC before anything else if your relative has complex health needs.
- Get written quotes from several homes and compare what is included.
- Work out how long savings will last at the quoted fee, allowing for yearly increases.
- Choose with the future in mind. Ask whether the home accepts council rates if money runs out, and whether a top-up would then be needed.
- Get specialist advice before selling or giving away property or savings. Councils can treat money deliberately given away to avoid fees as "deprivation of assets" and assess your relative as if they still had it.
Free guidance is available from MoneyHelper, Age UK and Citizens Advice. For personal financial advice, look for an adviser regulated by the Financial Conduct Authority who specialises in later-life care fees.
Frequently asked questions
Will my parent have to sell their house to pay for a care home?
Not always. The house is ignored for the first 12 weeks of a permanent stay and while a partner or a qualifying relative still lives there. A deferred payment agreement can also delay payment, so the house does not have to be sold during your parent's lifetime.
Why are self-funders charged more than the council pays?
Councils negotiate lower rates for the places they buy, and homes often charge private payers more to cover their costs. The CMA found in 2016 that self-funders paid on average about 41% more for places in the same homes. Ask each home for its fee in writing and what it accepts from the council.
What happens when savings fall to the upper limit?
In England, contact the council about three months before your relative's capital is likely to drop to the upper limit and ask for a financial assessment. If the home costs more than the council will pay, the home may ask for a top-up or, in some cases, a move.
Is dementia care always paid for by the NHS?
No. A dementia diagnosis alone does not mean the NHS will pay. Eligibility for NHS continuing healthcare depends on the nature and complexity of a person's overall needs, so ask for an assessment if needs are severe or complex.
Are care home fees the same across the UK?
No. Fees vary by region, and each nation has its own funding rules. Scotland provides free personal care, Wales has a higher capital limit, and England and Northern Ireland use similar means tests.
Key takeaways
- Fees vary with location, type of care and room: get written quotes and compare what is included.
- Homes should publish key fee information upfront, including extras and how fees can rise.
- In England for 2026/27, people with capital above £23,250 usually pay in full; below that, the council helps.
- The home is ignored for 12 weeks, and while a partner or qualifying relative lives there; deferred payments can delay a sale.
- Scotland, Wales and Northern Ireland have different rules, so check the official page for your nation.
- Check NHS continuing healthcare and NHS-funded nursing care before paying privately, and get advice before moving assets.