How to pay for a care home

Care home fees are paid in one of three ways, and many people use a mix. The right place to start is two free assessments from your council, before you commit to anything.

Start with two free assessments

Whatever your finances, ask your local council’s adult social services for a care needs assessment to confirm what type of care is needed, then a financial assessment (the means test) to see what the council will pay. Both are free and neither commits you to anything. Do this even if you expect to self-fund, because it sets a baseline and you may qualify for more help than you think.

The three ways fees get paid

1. Self-funding

If your capital is above £23,250 you usually pay the full fees, around £1,300 a week for residential or £1,500 for nursing care on average in England. Self-funders pay more than councils for the same room, so it pays to compare homes and ask each for a full written cost breakdown. An independent financial adviser who specialises in later life can explain options such as a care fees annuity that caps your lifetime cost.

2. Council funding

If your capital is below £23,250, the council contributes, and below £14,250 it funds your care while you pay from income only. The council pays up to its own rate; a more expensive home needs a third-party top-up. If you own your home, look at the 12-week disregard and a deferred payment agreement so you do not have to sell straight away.

3. NHS funding

If care needs are mainly about health rather than day-to-day support, the NHS may pay. NHS Continuing Healthcare covers the entire cost and is not means-tested. In a nursing home, the NHS also pays a flat weekly funded nursing care contribution toward the nursing element.

Estimate your position

Use the calculator to see your likely weekly cost and whether the council should help, or look at costs in your area.

England only. This is general information, not financial advice. Speak to your council or an independent financial adviser before deciding.