Care Home Fees in England: Everything You Need to Know

Care home fees in England can be a significant concern for families planning long-term care. With rising living costs and an ageing population, understanding how care home funding works is essential for both financial security and peace of mind. Whether you’re planning for your own future or supporting a loved one, knowing who pays, how much, and what options are available can make all the difference.

This guide explores how care fees are calculated, when local authorities step in, and how legal tools like trusts or powers of attorney can help protect your assets. We’ll also highlight ways to shield your estate from care costs and how you can take proactive steps today.

How Much Do Care Homes Cost in England?

The average care home fee in England varies depending on several factors such as location, level of care required, and whether it includes nursing support. As of 2024, typical weekly fees are:

• Residential care (without nursing): £700 to £1,000 per week
• Nursing care: £1,000 to £1,500 per week

These figures can be much higher in London and the South East, where private care homes often charge upwards of £1,800 per week. Costs may also rise depending on specific medical needs, luxury facilities, or private rooms.

What’s Included in the Fees?

Care home fees typically cover:

• Accommodation and utilities
• Personal care such as washing, dressing, and toileting
• Meals and dietary needs
• Basic medical supervision
• Social activities and daily support

If a nursing home is required, medical and palliative care services will also be included, often resulting in higher fees.

Who Pays for Care Home Fees in England?

Funding for care homes in England is means-tested. This means your income and assets determine whether the local authority will help with the cost.

Financial Thresholds (2024 figures)

• If your assets are over £23,250, you must pay all your care home fees.
• If your assets are between £14,250 and £23,250, you’ll be expected to contribute but may receive partial help.
• If your assets are below £14,250, the local authority should cover the majority of your care costs.

Assets counted in this assessment include savings, investments, and property—though your home may be disregarded if certain family members still live there (e.g. spouse or dependent child).

When Does the NHS Cover Care Fees?

In specific cases, the NHS provides a funding scheme called Continuing Healthcare (CHC). This covers the full cost of care for people with complex medical needs, regardless of their financial situation. However, it’s challenging to qualify, and an assessment is required.

In addition, the NHS provides a weekly contribution towards nursing care, currently around £219.71 per week (2024), for those in nursing homes.

Local Authority Funding and the Means Test

If you fall below the financial threshold, your local authority may help fund your care. They will carry out a care needs assessment and a financial assessment. If eligible, they may pay for some or all of your fees—but may also require you to use income such as pensions or rental income toward costs.

If the care home you choose charges more than the council is willing to pay, a third-party top-up fee may be needed.

Protecting Assets from Care Home Fees

Understandably, many people wish to protect their family home or inheritance from being lost to care costs. While you cannot deliberately deprive yourself of assets (as the council may view this as “deprivation of assets”), there are legal strategies for care fee protection that are perfectly legitimate when done early enough.

Options May Include:

• Setting up a Protective Property Trust within your will
• Using a Lifetime Trust to transfer property with safeguards
• Gifting assets before care is foreseeable
• Creating a Lasting Power of Attorney to ensure decisions are made in your best interest if you lose capacity

It’s crucial to seek professional advice before taking action, as improper planning could result in your decisions being challenged. For tailored help, you can book a free consultation with one of our estate planning specialists today.

How to Plan Ahead and Manage Costs

Most people are not aware of the high cost of care until it’s too late. By preparing in advance, you gain greater control over your financial legacy. Here’s how:

1. Get a Care Fees Assessment Early

Don’t wait until care is needed. Request a financial and care needs assessment as early as possible so you’re aware of your responsibilities and options.

2. Set Up the Right Legal Documents

Create a Lasting Power of Attorney for Property and Financial Affairs to ensure someone trusted can manage your finances should you lose capacity.

3. Consider a Trust Structure

Trusts can protect your assets legally while giving you more flexibility than outright gifts. They are especially useful if you want to safeguard a share of your home for your children or spouse.

4. Work With Professionals

Care funding rules can be complex, and the wrong move can cost thousands. Our fixed-price estate planning packages are designed to make expert advice accessible and affordable.

Common Misconceptions About Care Home Fees

“If I give my home to my children, I won’t have to pay.”

This is false. If the council believes you transferred property to avoid care fees, they can still include its value and potentially reverse the transfer.

“The NHS will always pay if I’m sick.”

Only in very limited circumstances. Most long-term care, even for serious conditions like dementia, falls outside NHS responsibility unless it qualifies under Continuing Healthcare.

“I’m not wealthy, so this won’t affect me.”

If you own your home or have savings over £23,250, you are likely to be considered self-funding until your assets drop below that threshold.

Conclusion

Care home fees in England are a serious financial concern—but with the right planning, they don’t have to result in the loss of your home or savings. Understanding how the system works and taking proactive steps can help protect your assets, secure your loved ones’ future, and give you peace of mind.

If you’re unsure where to begin, speak with our team today to get expert, tailored guidance. And for a clear breakdown of our services and what’s included, view our estate planning pricing page here.