Who Pays Care Home Fees in the UK?
One of the first questions families ask when a loved one enters care is: Who pays care home fees in the UK? The answer depends on personal finances, local authority funding, and health-related needs. Understanding the process can help protect your savings and avoid unexpected costs.
In this guide, we explain how care home funding works in England, when you may have to pay, and what support is available. We’ll also share practical strategies to protect your home and savings from care costs.
How Care Home Fees Are Calculated
Care home fees cover your accommodation, meals, personal care, and support services. These fees vary by location and type of care. In 2024, the average cost in England ranges from £700 to £1,500 per week.
Before any funding is offered, your local council will complete a means test. This financial assessment looks at:
- Your income (e.g. pension or rental income)
- Your savings and investments
- Your property ownership (including your home)
Depending on the result, you may:
- Pay everything yourself (self-funder)
- Receive partial help from the council
- Qualify for full funding if you meet strict health criteria
Care Home Funding Thresholds (England, 2024)
- Over £23,250: You must pay the full cost
- £14,250–£23,250: You contribute, the council helps
- Under £14,250: The council pays most costs
If you own a home, its value may be counted unless a partner or dependent still lives there. Learn more about care home costs at Age UK.
Who Actually Pays for Care Home Fees?
Here’s what happens in different situations:
- You have over £23,250: You pay in full until assets drop below the limit
- You have less than £14,250: The council funds most of your care
- You have complex medical needs: You may be eligible for NHS Continuing Healthcare, which covers all costs
Are Family Members Legally Obligated to Pay?
No. Relatives are not legally required to pay for a loved one’s care unless they’ve signed an agreement with the care provider. That said, some families choose to contribute voluntarily—for example, to secure a preferred care home or upgrade facilities.
How to Protect Your Assets from Care Home Fees
If you want to avoid losing your home or savings to care fees, early planning is crucial. Legal strategies like trusts can help if set up properly and in advance.
Using a Trust for Protection
A Protective Property Trust or Family Asset Protection Trust may help ring-fence your home. These need to be established for valid reasons, not just to avoid care fees, or the council could challenge them under deprivation of assets rules.
Explore your options in our Care Fees Protection service or book a free consultation for tailored support.
Available Support and Benefits
- Local Authority Funding: Based on means testing
- NHS Continuing Healthcare: Full funding for eligible medical needs
- NHS-Funded Nursing Care: A weekly contribution for nursing home residents
- Attendance Allowance: A non-means-tested benefit for care needs
Planning Ahead to Reduce Care Costs
Start planning long before care is needed. Here’s how:
- Set up a Lasting Power of Attorney so someone trusted can manage your affairs if you lose capacity
- Review how your assets will be assessed in a care home means test
- Explore using a trust to protect your property, where suitable
- Work with legal professionals to get your strategy right the first time
Frequently Asked Questions
Do I have to sell my home to pay for care?
Not always. If a partner still lives there, it won’t be counted. You may also delay payment using a Deferred Payment Agreement.
Can I give away my home to avoid care fees?
If the council thinks it was done to avoid fees, they may still include it in the assessment. This is called deprivation of assets.
What if I run out of money while paying for care?
Once your assets fall below £23,250, you may qualify for council funding. Apply early to avoid care disruption.
Conclusion: Who Pays for Care?
Understanding who pays care home fees in the UK is vital to protecting your finances and planning ahead. Whether you’re funding care now or planning for the future, knowing the rules—and your rights—can make all the difference.
Book your free consultation to discuss a tailored plan that secures your home, savings, and legacy.