A guide to care home contracts

Signing a care home contract is essential to ensure your rights are protected and that the care home can be held accountable for the services it provides to you. This includes key details such as the care home notice period.

The contract details all information regarding your fees, what services you are entitled to, the terms of your stay and all other obligations you and the care home must fulfil. For example, the terms in the event of you leaving the home.

This page outlines what you need to know about care home contracts. This includes who the contract is between, terms of services, fees and payments, occupancy and leaving the home.

Who is the contract between?

The contract is between the care home and whoever is paying for the service. Who pays for the service will be different. This depends on whether care is funded by the local authority (state funded), the resident themselves and if a third party is paying top-up fees.

State-funded

If your local authority is funding your care, the contract will be between the home and the local authority.

Self-funded

If you pay for the care yourself, the contract will be between you and the care home.

Top-up fees

If your care is funded by the local authority, you may not be able to choose which care home you move into. However, if you want to live in a more expensive care home, a third party, such as a family member, can pay top-up fees to enable this.

In this case, there will be two contracts: One between the local authority and the care home, and one between the care home and the person paying the top-up fees.

Please see our detailed guide to top-up fees for more information.

Who signs a care home contract?

If a person is self-funding or pays a proportion of their fees, then they are required to sign a care home fees contract which details the terms and services provided.

Contracts can be signed by the person entering care if they are mentally capable or by a lasting power of attorney.

If signed by a person who is not the resident, the agreement may place upon the person signing specific terms and conditions.

Should I seek legal advice before signing a care home contract?

Many people do not take legal advice to check the validity of a care home contract and the terms contained within it before signing. Care home contracts are often signed quickly due to personal circumstances and to ensure the security of a space in a residential home. It is a good idea to seek legal advice.

What should a care home contract cover?

Trial period

If the care home offers a trial period, the details of this will be in your contract. For example, the home may offer a 30-day trial period to ensure they can offer you the level of care that you need. This will also gives you the opportunity to settle in before committing fully.

For example, you may not feel like the care home is for you, or the residential home is unable to provide you with the level of care you require. During the trial period, you will usually be able to terminate the contract without any additional fees. But only as long as you give the home sufficient notice.

Fees and additional charges

The contract will outline the cost of the service, how payments will be made, and by whom. This includes any deposit required, weekly fees, top-up fees, additional charges, and notice period for any increases.

For example, a care home may have an annual fee increase to cover predictable costs and/or require payment of four weeks’ fees in advance of admission. You may have to make payments in advance each month/week and cover extra costs of hairdressing, toiletries or meals.

These are examples, but it is crucial that you fully understand these terms to ensure that you will be able to afford living at the care home. You can read our guide about care home funding in England. You can also read about care home fees and who pays for what.

Level of care and services provided

The types of services and care you will receive during your stay will be outlined in the contract. It should also include details of the process in the event your care needs change and your care plan needs to be adjusted.

For example, in a residential care home, the contract may say that they will provide you with food, heat, light, accommodation, laundry and reasonable personal care normally required by an older person.

You may at some point need help with tasks you were previously able to do yourself. This may come with additional charges, such as if you need to move to a different room with more facilities.

Accommodation

The type of accommodation, for example single bedroom with en-suite facilities.

Insurance

The contract will tell you what and what is not covered by the care home’s insurance. For instance, you may be allowed to bring your own furniture, but the care home may not provide insurance for such items.

Terminating a contract and moving out of care home – Care home notice period

Should either you or the care home choose to terminate the contract for whatever reason, the contract will outline the process for this. The contract will also include notice periods, fees, removing your belongings and more.

If you are moving out of the home and wish to cancel the contract, you must give the care home sufficient notice as outlined in the contract.

In the event of death, residential fees may continue to be charged for a few days. Family members and relatives may have to clear the room on their own.

In a situation where the care setting asks you to leave and wishes to terminate your contract, they must clearly and upfront explain the reasons why.

The reasons for termination must be valid, as set out by the Competition and Markets Authority (CMA). This could be if the resident has repeatedly not paid their fees. Or the care home can no longer meet the resident’s needs even after making reasonable adjustments.

Absence

Details of what happens to your fees and accommodation while you are absent from the home due to, for example, a hospital visit or holiday are included in the contract.

You may be able to keep your rooms for a number of weeks. The home may offer you a discount due to the savings they are likely to make as a result of your absence, such as reduced food, heating and lighting costs.

Unfair terms and invalid care home contracts

In 2018, the CMA released guidance for care homes regarding consumer rights for residents and their families.

It states that care homes across all UK nations are required to present you with key information to help you make a decision on whether to move in or not. Important information, such as the care home’s fees, must be clearly highlighted, easily accessible and not hidden.

Care home contracts must be written clearly and simply to ensure residents and/or their representative are able to easily understand their rights and responsibilities.

In accordance with consumer law, if the contract is unfair, it will not be valid. Unfair contractual terms are not legally enforceable.

A contract is unfair when it puts the resident and/or their representative at an unfair disadvantage, such as giving the care provider more rights than you as a resident.

Unfair care home contract terms could be:

• The provider holds you to account for things that are their fault (e.g. failure in care leads to injury or death of resident)
• Allowing the care home to increase your fees unexpectedly
• Not giving the resident important information
• Charging fees for an extended period of time following a resident’s death

Making a complaint

If you as a resident wish to make a complaint, the care home’s formal complaints procedure should be outlined in the contract.

You always have the right to make a complaint about your care or the way you are being treated. The care setting is obligated to make it easy for you to complain and staff must never discourage you from doing so.