Care Home Fees Overview

There are two main types of registered care home in England:

• Residential care homes provide personal care (help with washing, dressing, meals) but not nursing care. Fees typically range from £700 to £1,200 per week (2025/26).
• Nursing homes (care homes with nursing) provide 24-hour nursing care as well as personal care, for people with complex medical needs. Fees typically range from £900 to £1,800+ per week.

Fees vary significantly by region: London and the South East are more expensive than the North or Midlands. Specialist dementia care can add 10–30% to the standard fee. Extra services such as hairdressing, trips out, and specialist activities may be charged separately.

Always ask the home for a full written breakdown of what is included in the weekly fee before committing to a placement.

When your local council funds your care, it pays up to its "usual cost" — the maximum rate it considers reasonable for a placement meeting your assessed needs. This varies by council but is often lower than what many care homes actually charge.

If you or your family want a care home that costs more than the council's usual cost, a top-up fee (formally a "third party contribution") can make up the difference. However, the law requires that this is paid by a third party (e.g., a family member), not by the resident from their own assessed income or the personal expenses allowance.

Top-up fee arrangements must be set out in a written agreement. Be aware that if the third party stops paying, the home may seek to move the resident — so consider this carefully before agreeing. Some councils will allow the resident to pay a top-up from certain disregarded savings; always check the council's policy.

If the council is funding your care, you have the right to choose any suitable care home — including one outside the council's area — as long as:

• It is appropriate for your assessed needs;
• The placement is available; and
• The provider is willing to enter into a contract with the council at the council's usual cost (or with a top-up if applicable).

The Care Quality Commission (CQC) registers and inspects all care homes. Each home is rated Outstanding, Good, Requires Improvement, or Inadequate. You can search for a home and read its latest inspection report on the CQC website. Visiting homes in person and speaking to residents and their families is also strongly recommended.

When you move into a care home, you (or the council on your behalf) must sign a contract with the care home provider. The contract must clearly set out:

• The weekly fee and what it includes;
• Any additional charges and the circumstances in which fees can increase;
• Notice periods for leaving or being asked to leave;
• The complaints procedure.

The Competition and Markets Authority (CMA) has issued guidance to care homes reminding them of their obligations under consumer protection law, including the need for transparent pricing, reasonable notice of fee increases, and fair contract terms.

If you have concerns about charges or contract terms, contact Citizens Advice or the Local Government and Social Care Ombudsman.

Many people enter a care home as a self-funder — paying the full fee from savings, income, or the proceeds of a property sale — but eventually spend down their assets to the point where the council takes over funding. Understanding this transition is essential for financial planning.

In England, the upper capital limit is £23,250. Once your assets (including savings and any property that is no longer disregarded) fall below this figure, the council carries out a financial assessment and will begin contributing to your fees. You continue to pay a contribution towards your care based on your assessed income and savings between the lower limit (£14,250) and the upper limit. Below £14,250, the council funds your care almost entirely, leaving you with only a weekly Personal Expenses Allowance (currently £30.15 per week in England) to spend as you choose.

The transition has a practical complication: many care homes charge self-funders significantly more than the council rate. Once the council takes over, it will only pay up to its "usual cost" for a placement meeting your needs. If the home charges more than the council rate, a top-up fee will be needed to stay — or you may need to move. To avoid a forced move later, it is worth asking the care home at the outset whether they accept the local council rate, or at what level they would accept council funding. Doing this planning early gives families more control.

If you are approaching the capital threshold, notify the council promptly. The council must carry out a financial assessment without delay once your assets fall below the upper limit. A deferred payment agreement (DPA) can help if you still own property and need the council to bridge the funding gap while the property is retained.