Nearly half of all residents in care homes for older people fund their own care, placing a significant financial responsibility on individuals and their families. As a result, one of the first and most important questions people face is how much care will cost and how those costs will be paid for.
Care home fees in the UK can vary widely depending on location, the level of care required, and the services provided. Understanding what you may be expected to pay, what support might be available from the NHS or your local authority, and how your savings, property, or income are taken into account can help you plan with greater confidence and avoid unexpected financial pressure.
This guide answers some of the most frequently asked questions about the costs associated with care homes.
How Much Does it Cost to Live in a Care Home?
The cost of living in a residential care home in the UK varies depending on several factors, including location, the type of care required, and the facilities provided.
According to data from Carehome.co.uk,
- The average weekly cost of residential care if you are a self-funder is £1,298.
- The monthly average cost of residential care is £5,192.
- Residential care for a whole year (52 weeks) costs on average £67,496.
If nursing care is required, costs are usually higher. Fees typically cover accommodation, meals, personal care, and access to activities, but additional services may sometimes be charged separately.
It is important to ask for a clear breakdown of fees so you understand exactly what is included.
Does the NHS Pay Care Home Fees?
In most cases, the NHS does not pay for residential care. However, there are some exceptions.
If a person has very complex health needs, they may qualify for NHS Continuing Healthcare. This is fully funded by the NHS and covers care home fees, including accommodation. Eligibility is based on medical need rather than financial circumstances and is assessed by the NHS.
The NHS may also contribute a fixed weekly amount towards nursing care costs through the NHS-funded Nursing Care scheme if a person lives in a nursing home.
Will the Local Council Pay My Care Home Fees?
Local authorities may contribute towards care home fees, but this depends on a financial assessment.
If your savings and assets are below the current threshold, the local authority may pay some or all of your care costs. If your assets are above the threshold, you are usually expected to pay for your own care.
Even if you are self-funding, you can still ask the local authority for a care needs assessment, which can be helpful when planning long-term care.
What Happens If My Money Runs Out in a Care Home?
If your savings reduce over time and fall below the financial threshold, you can ask the local authority to reassess your situation.
If you are eligible, the local authority may start contributing towards your fees. It is important to speak to the care home and the local authority early, as funding arrangements can take time to put in place.
Some care homes accept local authority funding, while others may require a top-up fee. This is something to discuss in advance.
How Much Savings Can You Have Before You Pay Care Home Fees?
In the UK, the amount you pay towards care home fees depends on how much you have in savings and assets.
For the 2025/26 tax year, the thresholds below show how much you can have before you are expected to contribute towards the cost of your care.
| Nation | Lower Savings Limit | Upper Savings Limit | What This Means |
|---|---|---|---|
| England | £14,250 | £23,250 | If your savings are below £14,250, you do not usually have to contribute. Between £14,250 and £23,250, you pay some of your care fees. Above £23,250, you pay all of your care fees. |
| Scotland | £21,500 | £35,000 | You may receive support below £21,500. Between £21,500 and £35,000, you may need to contribute. Above £35,000, you usually pay the full cost. |
| Wales | £50,000 | If your savings are above £50,000, you are responsible for paying your care home fees. | |
| Northern Ireland | £14,250 | £23,250 | The same thresholds as England apply, with partial contributions between the limits and full payment above £23,250. |
Do I Have to Sell My Home to Pay For Residential Care?
Not always. Whether your home is included in the financial assessment depends on your circumstances.
If you are moving permanently into a care home and no qualifying relatives live in your property, its value may be taken into account. However, there are situations where your home is disregarded, for example, if a spouse, partner, or certain dependents continue to live there.
Deferred Payment Agreements may also be available. These allow you to delay selling your home while the local authority helps cover care costs, which are later repaid.
Do Relatives Have to Pay for Care Homes?
Relatives are not legally responsible for paying care home fees unless they choose to do so.
When a local authority assesses whether they should pay towards a person’s care, only that person’s share of any joint assets and savings is taken into account.
In some cases, a family member may agree to pay a top-up fee if the chosen care home costs more than the local authority’s standard rate. This is voluntary and should only be agreed to if it is affordable long-term.
Compassionate Residential/Residential Dementia Care at Swarthmore Care Home
If you are exploring residential/residential dementia care for yourself or a loved one, Swarthmore Care Home in Gerrards Cross offers a warm, welcoming place to call home. We provide compassionate, person-centred care that respects each individual’s independence and personal history.
Our dedicated team takes the time to understand every resident’s needs, ensuring care is tailored and supportive. With comfortable surroundings, meaningful activities, and a strong sense of community, residents are encouraged to live well and feel at home.
Residents at Swarthmore Care Home benefit from:
- Person-centred residential care tailored to individual needs
- A comfortable and secure home environment
- A wide range of meaningful activities and social opportunities
- Compassionate, experienced staff who value dignity and respect
To find out more about residential & residential dementia care at Swarthmore Care Home, or to arrange a visit and speak with our team, please get in touch. We are always happy to answer your questions and support you in making the right decision.
