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    Money & Legal
    Funding Options

    How to Pay for Care Home Fees: A Complete Guide

    Understanding how to fund care home fees is one of the most important decisions families face. This guide explains the different funding options available in the UK, including self-funding, local authority support, NHS Continuing Healthcare, and the means test process.

    Reviewed by Care Directory Team

    Care home fees in the UK typically range from £800 to £1,500 per week for residential care, and £1,000 to £2,000+ for nursing care. Understanding your funding options is essential for making informed decisions about your loved one's care.

    If you have savings and assets above £23,250 (in England), you'll be expected to pay for your own care. This is known as self-funding. Your home is usually included in the means test unless your spouse or certain other people live there.

    • Savings and investments
    • Property (with some exceptions)
    • Income from pensions and benefits
    • Shares and bonds

    If your capital falls below £23,250, your local council may contribute to care costs. Below £14,250, the council pays most costs (you contribute from income). Between these thresholds, you pay a tariff income.

    If you have a primary health need, you may qualify for NHS Continuing Healthcare (CHC), which is fully funded by the NHS. This requires a comprehensive assessment by healthcare professionals.

    If your main asset is your home, you may be able to defer payment until after you pass away or sell the property. This allows you to access care without immediately selling your home.

    Contact your local council's adult social services for a free care needs assessment. Age UK advice line: 0800 678 1602. Care Directory support: 0808 501 0191

    Frequently Asked Questions

    What is the means test threshold for care home funding?

    In England, if you have assets above £23,250, you'll be expected to self-fund your care. Below £14,250, the local authority pays most costs. Between these thresholds, you pay a sliding scale contribution.

    Is my home included in the means test?

    Your home is usually included unless your spouse, civil partner, or certain other qualifying people live there. After 12 weeks in permanent care, the property value may be included.

    What is NHS Continuing Healthcare?

    NHS Continuing Healthcare (CHC) is free care funded entirely by the NHS for people with significant ongoing healthcare needs. Eligibility is determined through a comprehensive assessment.

    Can I defer paying care home fees?

    Yes, through a Deferred Payment Agreement with your local council. This allows you to use the value of your home to pay for care costs later, typically after death or property sale.

    Need More Help?

    Support Organisations

    Care Directory Support

    Sources & References

    • NHS
    • Age UK
    • Gov.uk

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