Cap on Care Home Fees in the UK
Many people planning for care later in life ask: Is there a cap on care home fees in the UK? The answer is yes, but it isn’t active yet. And even when it is, it won’t cover every cost.
This article explains how the cap will work, what it includes, and what steps you should take now to protect your finances and estate.
Book your free consultation or see our clear pricing options for support.
What Is the Cap on Care Home Fees?
The cap on care home fees in the UK is a planned limit on how much you’ll need to spend on personal care during your lifetime. The proposed cap is £86,000 and is due to start in October 2025.
What the Cap Covers
- Help with washing, dressing, and personal care
- Medical support related to care needs
- Only the amount you pay personally (not council contributions)
What the Cap Doesn’t Cover
- Food, utility bills, and everyday living costs
- Rent and accommodation in a care home
- Privately arranged care not tracked by your local council
When Does the Cap Begin?
The care cap was introduced in the Care Act 2014 but delayed several times. The new launch date is October 2025. Until then, there is no limit on what you might pay for care.
How Will the Cap Work?
Your local council will open a care account to track eligible spending. Only payments made by you count toward the cap. Council funding won’t count.
For example, if you pay £500 per week for personal care, it will take about 172 weeks—just over 3 years—to reach the £86,000 limit.
£500 x 172 weeks = £86,000
Once the cap is reached, your council will cover further personal care. But you’ll still pay for accommodation and living costs.
Who Is Eligible for the Care Cap?
You must:
- Live in England
- Have eligible care needs under the Care Act 2014
- Complete a care needs assessment with your local authority
If you arrange care privately and do not report it to the council, it won’t count toward your care cap. That’s why getting a council assessment is essential.
Can a Trust Help Reduce Care Costs?
Yes. The care cap helps with personal care costs, but not housing or everyday expenses. Many families use trusts to protect assets and reduce care costs.
Types of Trusts to Consider
- Property Protection Trust: Protects your share of the home
- Life Interest Trust: Supports a partner while protecting inheritance for children
- Discretionary Trust: Offers flexibility for complex family needs
Learn how trusts protect your estate from future care costs.
What You Should Do Now
Although the cap starts in 2025, care needs can arise at any time. Planning early means more control and fewer surprises.
Take These Steps:
- Request a care needs assessment from your local authority
- Review your assets and how your home is owned
- Speak to an estate planner about trust options
- Get legal advice to secure your future
Book your consultation now and start protecting what matters most.
Conclusion: What the Cap on Care Home Fees Means for You
The Cap on Care Home Fees in the UK will provide some relief. But it only covers personal care costs. You’ll still need to pay for rent, food, and basic living costs in a care home.
Protecting your assets is still important. Using the right strategies today—like trusts and early planning—can save your family thousands in the future.
Book your free consultation or see our pricing to get started.