Last reviewed: 24 May 2026 by the MP Estate Planning editorial team. Jurisdiction: England and Wales. Scotland and Northern Ireland have different probate and intestacy rules; the IHT thresholds are UK-wide.

By the MP Estate Planning UK editorial team · Estate planning information for England & Wales · Updated June 15, 2026

Cost of Care Home Fees in the UK: What You Need to Know

Understanding the cost of care home fees in the UK is essential for families planning long-term care. With expenses rising and means-testing thresholds fixed, the burden can be significant if no prior planning is done. This guide breaks down the cost of care, who pays, and how to protect your estate using legal strategies, including trusts and other estate planning tools.

If you’re concerned about care fees and want to explore protection strategies, book a free consultation with our team today.

What Are Care Home Fees and What Do They Cover?

For the 2026/27 position, see How Much Does a Will Cost in the UK? for further information from the MP Estate Planning UK editorial team.

For the 2026/27 position, see our reference guide on this topic for further information from the MP Estate Planning UK editorial team.

The cost of care home fees includes a wide range of services such as accommodation, meals, personal care, and sometimes medical support. Depending on the type of facility and the level of care needed, fees may include:

• Residential care or nursing care
• 24-hour staff supervision
• Healthcare assessments and medication administration
• Housekeeping and meals
• Activities and wellbeing programmes

Understanding these components is vital when budgeting or comparing providers. The quality of care and location both play a role in determining your costs.

Cost of Care Home Fees in the UK: Averages and Variations

According to Age UK and LaingBuisson data, the average cost of care home fees in 2024 is:

• £800 to £1,000 per week for residential care
• £1,000 to £1,400 per week for nursing care

This equates to £40,000 to £70,000 annually. Costs in London and the South East are notably higher due to regional demand and facility quality.

What Affects the Cost of Care?

• Location: Urban care homes tend to cost more than rural ones.
• Care Type: Nursing homes are more expensive than standard residential facilities.
• Care Needs: Dementia or specialist care adds to the cost.
• Extras: Hairdressing, therapies, and private rooms all increase fees.

Who Pays the Cost of Care Home Fees?

Whether you fund care privately or qualify for local authority or NHS support depends on your financial situation.

Self-Funders

If your assets (including your home, savings, and investments) are above £23,250 in England, you must self-fund your care. Similar thresholds apply in Wales and Northern Ireland, though they vary slightly.

Local Authority Funding

If your assets fall below the threshold, your local council may contribute. However, your income, pensions, and benefits will still be assessed, and you’ll be expected to contribute what you can.

NHS Continuing Healthcare

If your care needs are primarily medical, you may qualify for NHS Continuing Healthcare (CHC), which is not means-tested. Eligibility is strict and based on clinical need.

How to Reduce or Avoid the Cost of Care Home Fees

You can’t simply “give away” your assets to avoid care costs, and the best time to act is well before care becomes necessary.

1. Use a Will Trust to Protect Property

A Property Protection Trust inside your will can shield part of your home from care fee assessments. This strategy is especially effective for couples who own a property as tenants in common.

To learn more, speak with one of our advisors for tailored guidance.

2. Sever Joint Tenancy to Tenants in Common

By severing joint ownership, each partner controls their share separately. This allows one spouse to place their share in trust via their will when they die while the other retains residency, reducing the risk of the home being counted in care fee assessments.

3. Understand the Risks of Gifting

Gifting assets may seem like a simple way to avoid fees, but it can backfire under the “deliberate deprivation” rules enforced by local authorities. If they believe you transferred assets purely to avoid care costs, they can still assess you as if you owned them.

Always consult a qualified estate planner to ensure your actions are within legal boundaries. Book a free consultation now to explore your options.

Common Myths About the Cost of Care Home Fees

• “I don’t need to worry about this until I’m older.”, False. Early planning is key to protecting your estate.
• “If I give my house to my kids, it’s safe.”, Possibly not. The local council can investigate and treat the gift as still being part of your assets.
• “The NHS pays for everything.”, Only in cases where your needs meet strict CHC criteria.

Plan Ahead to Avoid the Full Cost of Care Home Fees

By preparing early, you can save thousands and preserve your legacy. Key benefits of early planning include:

• Protecting your family home
• Shielding savings and investments
• Ensuring control over who inherits your estate
• Reducing the burden on your family

Visit our Pricing Page to see how affordable effective planning can be compared to the cost of long-term care.

FAQs About the Cost of Care Home Fees

Will I have to sell my home?

Possibly. If your assets exceed the means-test threshold and no dependent lives in the home, it may be included in assessments. Trusts and strategic ownership structures can help prevent this.

Is the cost different if I need dementia care?

Yes, dementia care usually requires specialist support and can increase weekly fees significantly.

Can I use my pension to cover care costs?

Yes. Pensions, savings, and other income sources will be included in the means-test and used to fund care where appropriate.

Can the local authority claim my inheritance?

If your estate is used to repay care fees after death, it could reduce what you pass on. Planning can help.

Conclusion: Take Control of the Cost of Care Home Fees

The cost of care home fees is rising, but you don’t have to face it alone. Strategic estate planning can help you protect your home and savings, and secure a legacy for your family.

Take action now and explore your options with MP Estate Planning. Book a free consultation.

How the Capital Threshold System Works in Practice

One of the most misunderstood aspects of care funding is how the means test actually operates once a local authority becomes involved. Under the Care Act 2014, your financial assessment will typically centre on two key capital thresholds that determine how much, if anything, the local authority will contribute toward your care costs.

The Upper and Lower Capital Limits Explained

The upper capital threshold in England currently sits at £23,250. If your assessable capital, which may include savings, investments and, in certain circumstances, property, exceeds this figure, you will generally be expected to meet the full cost of your care as a self-funder. The lower threshold sits at £14,250. Once your capital falls below this figure, it is typically disregarded entirely for the purposes of your financial assessment, meaning the local authority should meet the majority of eligible care costs subject to any income contribution.

It is important to note that these figures apply in England. Scotland, Wales and Northern Ireland operate their own systems with materially different thresholds and rules. In Scotland, for instance, free personal care is available to eligible adults regardless of their financial position, which can significantly alter the planning calculation. Welsh residents are assessed under a framework that mirrors England in broad terms but diverges on certain capital treatment rules. If your circumstances involve any cross-border element, we would strongly recommend taking advice from a practitioner familiar with the relevant devolved regime.

What Happens in the Band Between the Two Thresholds

The band between £14,250 and £23,250 is where the calculation becomes particularly important to understand. Within this range, the local authority will apply what is known as a tariff income assessment. For every £250 of capital you hold above the lower threshold, a notional weekly income of £1 is added to your actual income for assessment purposes. In practice, this means that someone with £20,000 in capital, sitting £5,750 above the lower limit, would have an assumed tariff income of £23 per week added to their assessment, reducing the local authority’s contribution accordingly. This graduated approach can come as a surprise to families who expected a simple on/off funding switch.

How Property Is Treated in the Means Test

Your main residence will typically be disregarded from the capital assessment for the first twelve weeks of a permanent care placement, and may also be disregarded indefinitely in certain circumstances, for example, where a qualifying relative such as a spouse, civil partner or dependent continues to live there. However, where no disregard applies, the value of the property may be included in your assessable capital, which is precisely why the structure of your property ownership at the point of assessment can carry significant financial consequences. This is the area where estate planning instruments, particularly Will Trusts and tenancy severance, interact directly with the local authority calculation, a point we address in more detail elsewhere in this article.

Common Questions About the Cost of Care Home Fees

How much money can you have before you have to pay for care?

In England, you will generally be expected to fund your own care in full if your assessable capital exceeds £23,250. Once your capital has depleted to this level, the local authority will typically begin contributing toward eligible costs, with your contribution reducing further as capital falls toward the lower threshold of £14,250. Below that lower figure, capital is usually disregarded entirely, though income, including pensions and certain benefits, will still be taken into account. These figures are reviewed periodically, so it is worth checking the current position on the government’s Care and Support Statutory Guidance.

Do dementia sufferers have to pay care home fees in the UK?

In most cases, yes. A diagnosis of dementia does not in itself entitle someone to free care. However, where care needs are assessed as arising primarily from a health condition rather than a social care need, a person may qualify for NHS Continuing Healthcare (CHC), which is funded entirely by the NHS and is not means-tested. In our experience, CHC eligibility is assessed against a demanding threshold and is not routinely awarded, so families should not assume it will be available. That said, it is always worth requesting a formal CHC assessment if the level of clinical need is significant. Specialist dementia care placements typically attract higher weekly fees and may fall toward the upper end of the £1,300 to £1,500 per week range associated with nursing care.

Is it cheaper to have home care or a nursing home?

This depends heavily on the level of care required. For lower-level support needs, home care can be considerably more cost-effective than a residential placement. However, for individuals requiring round-the-clock supervision or complex clinical intervention, the cost of providing equivalent 24/7 in-home care can in practice exceed the cost of a residential placement. Average weekly residential care home costs in England in 2024/25 are generally cited in the range of £1,100 to £1,200 per week, rising to £1,300 to £1,500 per week for nursing care. A live-in home care arrangement may cost a similar amount, but will not typically include the same level of clinical oversight. The right answer is rarely straightforward and will depend on individual needs, property suitability and family circumstances.

Are next of kin responsible for care home fees?

No. In England and Wales, next of kin are not legally liable for a family member’s care home fees simply by virtue of their relationship. The obligation to pay rests with the individual receiving care, or with the local authority where statutory funding applies. However, next of kin may become involved where they hold a Lasting Power of Attorney for property and financial affairs, in which case they may manage payment on the person’s behalf from that person’s own funds. Any arrangement that attempts to make family members contractually liable for fees, sometimes proposed by care providers, should be reviewed carefully before signing.

How to avoid paying care home fees in the UK?

This is one of the most frequently asked questions in estate planning, and it deserves a frank answer. There is no lawful mechanism that guarantees you will never contribute toward care costs. However, there are steps that may legitimately reduce exposure, most effectively when taken well in advance of any care need arising. Severing a joint tenancy so that property is held as tenants in common, and then reflecting that share in a properly drafted Will Trust, can mean that a deceased spouse’s share of a property passes into trust rather than forming part of the surviving spouse’s assessable estate. Local authorities are aware of these structures and will apply deliberate deprivation rules where a transaction appears to have been made primarily to avoid a foreseeable care liability. Timing, intention and medical history at the point of any planning are therefore material considerations. Our team can explain how these structures work in practice and help you understand whether a particular approach is appropriate to your circumstances.