Care Home Costs & Funding Calculator UK 2025/26
Care home costs in the UK average £35,000-£65,000 per year depending on care needs and location. Funding depends on your capital (savings and property). Local authorities fund care for those with unde
How Care Home Funding Works in England 2025/26
Capital Thresholds (England)
| Capital level | Funding position |
|---|---|
| Over £23,250 | Self-funder — pay full cost yourself |
| £14,250 – £23,250 | Partial LA funding — sliding scale |
| Under £14,250 | Full LA funding (means-tested) |
What Counts as Capital
- Bank savings, investments, second properties
- Main home may be disregarded if: spouse/civil partner still lives there, a dependent relative lives there, or certain other criteria
- After 12 weeks in permanent care, the home is included as capital
NHS Continuing Healthcare (CHC)
If your care needs are primarily health-related (rather than social), you may qualify for NHS Continuing Healthcare — the NHS pays ALL your care costs regardless of your assets. To qualify: assessment shows a 'primary health need'. Criteria: complex, intense, unpredictable health needs. If CHC is refused and you self-funded, you may be able to claim a retrospective refund.
Local Authority Assessment
If you have under £23,250, the LA will do a financial assessment and care needs assessment. They will fund the difference between their assessed rate and your contribution (income + tariff). The LA rate is often lower than private rates — you (or family) can 'top up' to access a more expensive care home.
Average Costs (England 2025)
| Care type | Average weekly cost | Annual |
|---|---|---|
| Residential (no nursing) | £880-£1,100 | £46,000-£57,000 |
| Nursing care | £1,000-£1,300 | £52,000-£68,000 |
| Dementia nursing care | £1,100-£1,500 | £57,000-£78,000 |
Frequently Asked Questions
What is the care home capital threshold in 2025/26?
In England, if your capital exceeds £23,250, you pay the full cost of your care (self-funder). Between £14,250 and £23,250, a sliding scale applies — tariff income (£1/week for each £250 above £14,250) is added to your income. Below £14,250, you only contribute from income (not capital).
Does the family home count as capital for care costs?
Not always. The home is disregarded if your spouse, civil partner, or dependent relative still lives there. It's also disregarded in the first 12 weeks of permanent care. After 12 weeks, the home's value is included as capital — the Deferred Payment Agreement (DPA) allows the LA to put a charge on the property so you don't have to sell immediately.
What is NHS Continuing Healthcare?
NHS CHC is fully funded NHS care for people whose primary need is health-related. If you qualify, the NHS pays all care home costs regardless of your wealth. The threshold is a 'primary health need' — complex, intense, or unpredictable health conditions. Around 40,000 people in England receive CHC. If previously refused and self-funded, you may be able to claim refunds retrospectively (often thousands of pounds).
Can I protect my home from care home costs?
You cannot give away assets specifically to avoid care costs (local authorities can challenge this as 'deprivation of assets'). However: joint assets may be assessed differently, the 12-week disregard provides time, and deferred payment agreements avoid forced sales. Seek independent financial advice from a care specialist.
What is a Deferred Payment Agreement (DPA)?
A DPA lets the LA put a charge on your property (rather than you selling it) to fund your care. You repay the LA from the property sale proceeds (on death or if you leave care). Interest is charged at the standard LA rate (~2.2%). This prevents forced house sales while ensuring the LA eventually recovers costs.
What funding help is available for care at home?
Care at home (domiciliary care) is also means-tested on the same capital/income basis. If assessed as needing home care: LA funds based on your assessed needs and financial situation. Personal budgets let you direct your own care. Direct payments (cash from LA) let you arrange your own care workers.
How much does care at home cost privately?
Home care in England typically costs £15-£25/hour. For someone needing 3 hours/day, 7 days: £1,575-£2,625/month (£19,000-£31,500/year). 24-hour live-in care: £900-£1,500/week (£47,000-£78,000/year). These are private rates; LA-funded care may be at a lower arranged rate.
What is Attendance Allowance and how does it help?
Attendance Allowance (AA) is non-means-tested benefit for over-65s needing personal care help due to illness or disability. Lower rate: £72.65/week (daytime care needs). Higher rate: £108.55/week (day and night needs). You can receive AA and still use a care home. AA is payable in residential care for the first 4 weeks; not payable thereafter. Continue claiming until the 4-week period is up.