Unfair terms in care home contracts: your rights

By · Published 2026-09-19 · Last reviewed 2026-09-19

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Photo: The Natural Step Canada, CC BY 2.0

An unfair term in a care home contract is one that, contrary to good faith, tips the rights and obligations significantly against the resident. Under the Consumer Rights Act 2015, which applies across the UK, an unfair term is not binding on you even if you signed it, and the rest of the contract carries on. You can challenge the term in writing, complain, and report the home to Trading Standards.

A term in a care home contract is unfair if it tilts the agreement significantly against the resident in a way that is not open, fair dealing. Under the Consumer Rights Act 2015, which applies in England, Wales, Scotland and Northern Ireland, an unfair term is not binding on you, even if you have signed the contract. The rest of the contract carries on as normal.

Most families sign during a rushed, emotional week, often without reading every page. The law allows for that. This article explains how the fairness test works, which terms the consumer regulator has said are likely to be unfair, and what you can do about one.

What makes a contract term unfair in law?

The rules are in Part 2 of the Consumer Rights Act 2015. A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations under the contract, to the detriment of the consumer.

In plain words: the home wrote the contract, the resident had little chance to negotiate, and the term gives the home a lot of power or protection while leaving the resident exposed.

Three other rules in the Act help families:

The Act protects consumers, which includes a resident paying their own fees and a relative who signs an agreement with the home in a personal capacity.

Is a high price an unfair term?

Usually not. A court cannot assess whether the price is appropriate, or the main subject matter of the contract, as long as those terms are transparent and prominent. So you cannot normally challenge the weekly fee simply for being high.

What you can challenge is everything around it: how and when the fee can go up, charges tucked away in small print, what happens to money paid in advance, and what you owe when the contract ends.

Who decides what counts as unfair in a care home?

The Competition and Markets Authority (CMA), the UK's consumer regulator, investigated the care home sector and published consumer law advice for care home providers across the UK in 2018, updating it in December 2021. It also wrote a short guide for residents and their families.

The CMA's advice is not law in itself. It is the regulator's considered view of how the law applies to care homes, and it says that ombudsmen and Trading Standards may refer to it when they look at complaints. A home that ignores it is taking a real risk. Since April 2025, under the Digital Markets, Competition and Consumers Act 2024, the CMA has been able to decide for itself whether a business has broken consumer law and to fine it, rather than having to take the business to court first.

Which terms does the CMA say are likely to be unfair?

These are the areas the CMA's advice deals with in most detail. The wording in your contract will differ, so read these as patterns to look for.

Fees that carry on long after a resident has died

The CMA considers that terms requiring fees for extended periods after death are likely to be unfair. It says it is unlikely to object to either of these:

In both cases fees should stop once a new resident moves into the room, so the home is not paid twice. Fees paid in advance beyond that point should be refunded promptly. The CMA says concerns are likely to arise if a contract allows refunds to take longer than 28 days.

Open-ended fee increases

A term giving the home an unlimited right to raise fees, or to make unexpected changes, is likely to be unfair. The CMA's guide says the contract should clearly explain the circumstances in which fees may change and how the change will be worked out, for example by reference to a published price index. You should get at least 28 days' notice, and be able to leave without penalty before the increase takes effect.

Large deposits and unexplained upfront payments

The CMA says upfront payments are potentially unfair unless they are a fair deposit or an advance payment of the regular fees. A deposit remains the resident's money. It should be modest, held only to cover unpaid fees or damage, and returned quickly once the final account is agreed, normally within 28 days of the resident leaving or dying.

Guarantor terms that are vague or sprung on a relative

A guarantor is someone who agrees to pay a self-funding resident's fees if the resident does not. The CMA is unlikely to object to a guarantor requirement in itself. It does object where the relative is not told about it clearly at the start, is pressured into signing, or where the wording makes them liable for all fees and charges without any way of seeing what that could amount to. A guarantor should also be told about arrears in good time, not presented with a large debt later.

Wide powers to end the contract or ban visitors

Homes can ask a resident to leave for valid reasons set out in the contract, such as genuinely being unable to meet the person's needs, or repeated non-payment. A term allowing the home to give notice for vague reasons, or at very short notice, is likely to be unfair. The CMA's guide says residents should get at least 28 days' written notice, and the home should consult the resident and relevant professionals first. Even during a trial period, adequate notice is expected, and the CMA gives seven days as an example.

A home must never threaten to ban visitors or ask a resident to leave because someone has complained.

Full fees during every absence

A term requiring full fees however long the resident is away, for example in hospital, may be unfair, because the home is saving on food and care. The CMA says fairness is more likely where full fees apply for a limited period and a reasonable discount follows, while the room is kept for the resident.

No responsibility for loss or damage

A term saying the home accepts no liability for belongings that are lost, stolen or damaged, even when the home is at fault, is likely to be unfair.

Important terms buried in the small print

Surprising or important terms should be drawn to your attention before you commit, not left for you to discover later. A term you had no real chance to read before signing is more open to challenge.

Does this apply if the council or NHS pays?

The CMA's advice covers all residents, however they are funded. The difference is who holds the contract. When a council arranges the place (a Health and Social Care Trust in Northern Ireland), the main contract is between that body and the home. The resident or a relative may still be asked to sign a separate agreement, and it must be fair and clear too.

If a relative is paying a top-up, the terms of that agreement are covered in the same way. In England, top-ups are normally arranged through the local authority, not privately with the home. If you are unhappy with a term in a council-arranged placement, tell the council as well as the home.

What can you do about an unfair term?

Before signing

Ask for the full contract in advance and read it away from the home. If a term worries you, ask for it to be removed or changed, and get the answer in writing. A home that is confident its contract is fair should be willing to explain it.

After signing

  1. Write to the manager or provider. Name the term, say you believe it is unfair under the Consumer Rights Act 2015, refer to the CMA's consumer law advice for care homes, and ask them to confirm in writing that they will not rely on it. Keep copies of everything.
  2. Use the home's complaints procedure if that does not resolve it.
  3. Escalate. Where you go next depends on the nation:
  1. Report the home to Trading Standards. In England and Wales you do this through the Citizens Advice consumer service, which also gives advice; its page links to the separate routes for Scotland and Northern Ireland, where the helpline is Consumerline. Trading Standards does not settle individual disputes, but reports build the picture that leads to enforcement.
  2. Consider legal advice. A binding decision on a term in your own contract would come from a court. Take advice before withholding disputed fees, because arrears can themselves become a reason for the home to give notice.

The care regulators (the CQC in England and its counterparts elsewhere) focus on the safety and quality of care. The CQC does not investigate individual complaints, though it wants to hear about concerns.

This article is general information, not legal advice. Whether a particular term is unfair depends on its exact wording and the circumstances. If significant money is at stake, such as a large bill after a death or a demand made to a guarantor, speak to a solicitor or a free advice service before you pay or refuse to pay.

Frequently asked questions

We have already signed. Is it too late to object?

No. An unfair term is not binding on the consumer whether or not the contract has been signed. You can raise it at any point, including when the home first tries to rely on the term, for example when a bill arrives.

Does one unfair term cancel the whole contract?

No. The Consumer Rights Act says the contract continues, so far as practicable, in every other respect. The resident keeps their place and the fair terms still apply to both sides.

Could the home ask my relative to leave because we challenged the contract?

The CMA's guide says staff must never threaten to ask a resident to leave, or to restrict visitors, because of a complaint. If that happens, put your concerns in writing, keep a record, and take it to the ombudsman or complaints body for your nation.

The home charged several weeks of fees after a death. Can the family get the money back?

Possibly. The CMA's view is that fees should stop after a short fixed period, generally three days, or when the room is cleared, with a backstop of generally ten days. Whoever is handling the estate can write to the provider quoting the CMA's advice, ask for a refund, and escalate through the complaints route if it is refused.

Is the CMA's advice legally binding on care homes?

Not in itself. It sets out how the CMA believes consumer law applies, and the final word on any individual term rests with a court. It still carries real weight: the CMA and Trading Standards enforce the law it describes, and ombudsmen may refer to it.

Key takeaways