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, visit our Care Fees Protection page or book a free consultation with our team today.
What Are Care Home Fees and What Do They Cover?
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
While you can’t simply “give away” your assets to avoid care costs, legal options exist. The best time to act is well before care becomes necessary.
1. Use a Trust to Protect Property
A Property Protection Trust 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, visit our dedicated Care Fees Protection resource or speak to 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 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 with trusts can mitigate this.
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.