Care Home Cost Calculator UK 2025/26

Who Pays for Care Home Fees in the UK?

Understanding how care home funding works in the UK is one of the most important — and complex — financial questions a family can face. Decisions often need to be made during a stressful time, so it helps to understand the rules in advance.

The Means Test: Capital Thresholds

In England, the local authority (council) will conduct a financial assessment to determine how much, if anything, you must contribute to your care costs. The assessment looks at your capital — including savings, investments, and in most cases your property:

• Above £23,250: You are expected to be fully self-funded and pay all your own care home fees.
• £14,250 – £23,250: You pay a tapered contribution based on your capital. Each £250 above £14,250 is treated as £1 per week of notional income.
• Below £14,250: Capital is disregarded. You still contribute your income (pension, benefits) but the council funds the remainder.

These thresholds have remained unchanged in England since 2010. The Government originally planned to raise the upper limit to £100,000 in October 2023 under the Health and Care Act 2022, but this reform was postponed indefinitely.

Is Your Home Counted?

Your property is usually included in the means test capital figure if you move into a care home permanently and no qualifying person remains living there. Your home is disregarded (not counted) during the means test if:

• A spouse or civil partner continues to live there
• A dependent child under 18 lives there
• A relative aged 60 or over or who is incapacitated lives there

Even if your property is included in the assessment, you cannot be forced to sell it immediately. A Deferred Payment Agreement (DPA) allows you to delay paying the fees until the property is sold — typically after you pass away. The council places a legal charge against the property for the debt (plus interest at a rate set by the Government, currently around 6.15% per annum in England).

Deprivation of Assets

Councils are alert to deliberate deprivation of assets — giving away money, property or investments specifically to reduce your assessed capital. If a council believes you have done this, it can treat you as if you still own those assets. There is no fixed time limit; transactions made years earlier can be investigated. Genuine gifts for birthdays, Christmas or other normal reasons are generally not treated as deprivation.

NHS Continuing Healthcare (Free Care)

NHS Continuing Healthcare (CHC) is a fully funded care package for adults whose primary need is a health need. Unlike local authority care funding, CHC has no means test — the NHS pays everything, including accommodation. A multidisciplinary team carries out a clinical assessment using the NHS Decision Support Tool. The assessment considers the nature, intensity, complexity and unpredictability of needs. CHC is not available simply because someone is old or has dementia; the health needs must be the dominant reason for requiring care. If you believe a family member may qualify, request an assessment from the relevant NHS Integrated Care Board.

A fast-track CHC assessment exists for those approaching the end of life and is typically completed within 48 hours.

NHS-Funded Nursing Care (FNC)

Even where someone does not qualify for full CHC, if they live in a nursing home and have nursing needs, the NHS pays a flat-rate Funded Nursing Care (FNC) contribution directly to the care home. The FNC rate for 2025/26 is £235.88 per week. This is paid on top of any council or personal contribution and applies across England.

Scotland, Wales and Northern Ireland

Care funding rules differ across the devolved nations:

• Scotland: Free personal care and free nursing care is available regardless of assets. The council funds personal care costs (£235.10/week for personal care; £90.65/week additional for nursing care in 2024/25). Individuals still pay for accommodation costs (food, housing) from their own resources unless their assets fall below the lower capital limit (£20,250).
• Wales: The upper capital limit is £50,000 (raised from £24,000 in 2023). Below this, the council contributes to care costs. The weekly charge cap for care home accommodation is £100/week for those who are local authority funded.
• Northern Ireland: The capital limit is £23,250, similar to England. Free nursing care is provided by the Health and Social Care Trust.

Attendance Allowance and Other Benefits

If you are self-funding your care, you may still be entitled to Attendance Allowance (£72.65 or £108.55 per week in 2025/26, depending on level of need). This is paid regardless of savings or income. Once you move into a care home funded by the council, Attendance Allowance usually stops after 28 days. Other benefits to check include Pension Credit, Council Tax Reduction, and the £10 Christmas Bonus. The charity Age UK runs a free benefits check service.

Lasting Power of Attorney and Care Decisions

If someone loses mental capacity, a Lasting Power of Attorney (LPA) for Property and Financial Affairs allows a trusted person to manage finances and pay care home fees on their behalf. Without an LPA, families must apply to the Court of Protection for a Deputyship Order — a much longer and more expensive process. It is vital to set up an LPA before capacity is lost.

How to Choose a Care Home

The Care Quality Commission (CQC) inspects and rates care homes in England. Ratings are: Outstanding, Good, Requires Improvement, and Inadequate. Check the CQC website (cqc.org.uk) before choosing a home. In Scotland, the Care Inspectorate performs the same function; in Wales, it is Care Inspectorate Wales.

When visiting homes, ask about: staffing ratios, activities programme, visiting policies, what happens if fees increase, and whether the home accepts top-ups if funded by the council. Also consider location for family visits and the home's specialism — not all homes are equipped for advanced dementia care.