Who pays for a care home?

Explore in
minutes
Who pays for a care home?

Who Pays for a Care Home in England?

Paying for a care home in England depends on your financial situation. Here's how it works:

Local Authority Support

If you need a care home, your local council will first assess your care needs. This is called a care needs assessment.

After that, they will look at your finances. This is known as a means test.

  • If your savings and assets are over £23,250, you will pay for your care home fees in full.
  • If your savings and assets are below £23,250, the council may help with the costs.

However, you may still need to pay part of the fees from your income, like your pension.

What the Council Pays For

If the council helps, they will pay a set amount towards your care. This is based on their budget and what they think is reasonable.

If your chosen care home costs more than the council’s budget, a family member or friend can pay the difference. This is called a top-up fee.

NHS Support

If you have very high medical needs, you may qualify for NHS Continuing Healthcare (CHC). This means the NHS will pay all your care home fees, including accommodation and care.

If you don’t qualify for CHC, you might still get NHS-funded nursing care. This is a flat rate paid directly to the care home to cover nursing care costs.

Paying Privately

If you don’t qualify for council or NHS support, you’ll need to pay for the care home yourself. This is known as self-funding.

You can use your savings, income, or property to cover the fees. If you own a home, you might also consider a deferred payment agreement. This allows you to use the value of your home to pay for care without selling it immediately.

Who Pays for a Care Home in Wales?

Paying for a care home in Wales depends on your financial situation. Here’s how it works:

Local Authority Support

Your local council will start by doing a care needs assessment to check if you need a care home.

If you do, they will look at your finances through a means test.

  • If your savings and assets are over £50,000, you will pay for your care home fees in full.
  • If your savings and assets are below £50,000, the council may help with the costs.

Even with council support, you may need to contribute from your income, like your pension.

What the Council Pays For

If the council helps, they will pay a set amount towards your care. This is based on their rates and what they think is reasonable.

If your chosen care home costs more than the council’s budget, a family member or friend can pay the difference. This is called a top-up fee.

NHS Support

If you have severe medical needs, you may qualify for NHS Continuing Healthcare (CHC). This means the NHS will pay all your care home fees, including accommodation and care.

If you don’t qualify for CHC, you may still get NHS-funded nursing care. This is a flat rate paid directly to the care home for nursing care costs.

Paying Privately

If you don’t qualify for council or NHS support, you will need to pay for the care home yourself. This is called self-funding.

You can use savings, income, or property to cover the fees. Wales also offers a Deferred Payment Agreement, which lets you use your home’s value to pay for care without selling it straight away.

Benefits That Can Help

When self-funding, some benefits, like the Attendance Allowance can help with care costs.

Who pays for a care home in Scotland?

Click here to learn about the social care system in Scotland.

Who pays for a care home in Northern Ireland?

Click here to learn about the social care system in NI.

Further resources

No items found.