A guide to care home contracts

A care home contract is essential to ensure your rights are protected and your care home is held accountable for the services it provides. Understanding the terms and conditions in your care home contract is vital. This page outlines what to look for in care home contracts.

What is a care home contract?

• A care home contract is a formal, legally binding agreement. It involves the care home provider and the person seeking care (or their representative). This gives specific obligations and protections for all parties.
• The contract details the services you as a care home resident is entitled to. It outlines the rights of both parties and financial responsibilities. This includes fees information, the terms of your stay and all obligations you and the care home must fulfil.
• It sets out the responsibilities of the care home and the expectations for your care and accommodation.

Who is the care home contract between?

The contract is between the care home and whoever is paying for the service. Who pays for the service depends on whether care is funded by your local authority (state funded), you as the resident (self-funded), 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 to. 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 are two contracts: one between the local authority and care home and one between the care home and person paying top-up fees. Please see our detailed guide to top-up fees for details.

What should a care home contract cover?

What are the rights & responsibilities of the resident and care home?

The care home contract should include the care home provider and the resident’s (or their representative)’s rights and obligations. These include:

• Resident rights: The right to privacy, dignity, and a safe living environment and the right to participate in decision-making about their care.
• Care home responsibilities: The care home must ensure that it delivers the agreed-upon services and provides a safe, supportive environment.
• Resident’s responsibilities: Residents must follow the home’s rules and regulations including respecting property and residents.

What is the care home trial period?

Some care homes offer a ‘trial period’, where you can reassess whether the facility meets your needs. Make sure this is mentioned in the 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 also gives you the opportunity to settle in before committing fully. 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.

What are the care home fees and additional charges?

Your care home contract should outline the cost of the service and how payments will be made. It will include any deposit required, weekly fees, top-up fees, additional charges and notice period for any increases.

You should understand:

• Fees: A breakdown of the fees for care, accommodation and any additional services. Your contract should be clear about whether costs are fixed or subject to change.
• Payment Terms: To avoid care home arrears, you should know how and when payments are due (e.g.weekly, monthly). It should also state who is responsible for the payment (resident or family member).
• Additional costs: Are there extra charges for specific services such as outings, laundry, personal toiletries?
• Deposit, fee increases and upfront payments: Does the care home require a deposit? What are the refund conditions if the resident leaves early? A care home may have an annual fee increase to cover predictable costs. It may 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 e.g. hairdressing, toiletries, meals.

To understand whether 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.

What level of care and services will I get?

The contract should clearly specify the level of care and the services the care home will provide during your stay. This includes:

• Personal care: Help with daily tasks such as showering, dressing, eating etc.
• Medical care: Support for any ongoing medical conditions, medication management, and access to healthcare professionals.
• Specialist care needs: The contract must specify any specialized care for specific conditions, such as dementia or physical disabilities.
• Activities: A list of leisure activities, communal facilities, and any planned social or recreational events.
• Visitation and guest policies: The contract may detail the rules around visits, including visiting hours, restrictions (if any), and whether guests can stay overnight.

Your contract should also include details of the process if your care needs change and your care plan needs to be adjusted.

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.

What type of accommodation will I get?

The contract should include your accommodation details. It should include:

• Room type: Whether the room is private, comes with an ensuite, is suitable for a couple.
• Room amenities: Furniture, fixtures, and any additional services (e.g., internet, phone lines).
• Quality: Information about cleanliness, safety, and accessibility, including measures for people with physical or sensory impairments.

What is covered by care home insurance?

Your contract will tell you what is 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.

What is the length of stay and termination conditions?

Your contract should outline how long the resident is expected to stay and under what circumstances the agreement can be terminated. This section should also clarify:

• Early termination: Should either you or the care home choose to terminate the contract for whatever reason, the contract will outline the process. The contract should include details about removing your belongings.
• 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.
• Early termination fees: The contract should also include any early termination fees. If your care home contract is ended early, will there be any penalties or fees? Check the termination conditions carefully. Ensure you understand how your contract can be ended without penalties.
• Care home notice period: If either party wants to end the contract, the notice that must be given should be included in the contract. If you are moving out of the home and wish to cancel the contract, you must give the care home sufficient notice as highlighted in the contract.
• Death of a resident: 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.
• Transfer to another care service: What happens if the resident’s needs change, and they need to move to another care home or hospital? This should also be addressed in the contract.

What happens if I am absent from the care home?

• Your contract should include details of what happens to your fees and accommodation while you are absent from the care home. You may be absent due to, for example a hospital visit or holiday.

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.

What are the care home’s health and safety measures?

• Emergency Procedures: The contract should highlight how emergencies are handled, e.g. fire drills, first aid and emergency medical care.
• Staff Training.
• Health and hygiene standards: This includes cleanliness standards for rooms and food preparation areas.

What is the complaint procedure?

Both parties need to know how disputes will be handled. The contract should include:

• Complaint process: The contract should highlight the complaints process for making complaints about care, food, staff, or other issues.
• Independent mediation: Details about mediation/arbitration processes if an issue is not resolved internally.

Who signs a care home contract?

If you are self-funding or pay a proportion of your fees, then you 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 place in a care home.

Before signing a care home contract:

• Look out for complex terms and conditions: Sometimes the legal jargon in a contract can be hard to understand. If anything seems unclear, ask for clarification or consult a legal professional.

• Seek advice if necessary: It is a good idea to seek legal advice. Don’t hesitate to consult a solicitor or advocate for additional guidance, especially if you feel uncomfortable with certain aspects of the contract.
• Ensure the contract is fair: The terms should be fair and reflect the care needs of the resident and the family’s financial situation.

What if the care home contract is unfair?

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.

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, e.g. giving the care provider more rights than you as a resident.

In 2018, the CMA released guidance for care homes regarding consumer rights for residents. It states that care homes in the UK must present key information to help residents make a decision on whether to move in or not.

Care home contracts must be written clearly and simply to ensure residents can understand their rights and responsibilities. Key details including care home’s fees, must be clearly highlighted, easily accessible and not hidden.

How can I make a care home 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 treated. The care setting is obligated to make it easy for you to complain. Staff must never discourage you from doing so.