Care home fees and costs: How much do you pay?

Care home prices vary across the UK

Care home fees depend on where you live, what type of care you need, your savings and property and the care home provider.

Being aware of the average cost of a care home and how much you are expected to pay will help you make important decisions about your own or a loved one’s care.

How much are care home fees?

• The average weekly cost of residential care if you are a self-funder is £1,266.
• The monthly average cost of residential care is £5,064.
• Residential care for a whole year (52 weeks) costs on average £65,832.

The average cost of care homes in the UK (including both residential and nursing care) is also higher or lower depending on where you live. In England, for example, care homes in London are more expensive than care homes in the North West or South West.

How much are nursing home fees?

In a care home, nursing care is more expensive than residential care.

• The average nursing home cost if you are funding your own care is £1,529 per week across the UK. 
• Nursing care in a care home costs on average £6,116 a month.
• Nursing home care costs on average £79,508 a year.

How much are dementia care home fees?

Care homes that provide specialist care, such as dementia care, will normally charge a higher fee.

• Residential dementia care costs on average £1,306 a week. Annually (52 weeks) it costs £67,912.
• Nursing dementia care costs an average of £1,554 a week. Annually it costs £80,808.

Regional care home costs across the UK

Region	Residential care	Nursing care	Residential dementia care	Dementia nursing care
East Midlands	£1,146	£1,315	£1,179	£1,359
East of England	£1,304	£1,599	£1,340	£1,577
London	£1,545	£1,800	£1,603	£1,814
North East England	£1,059	£1,212	£1,089	£1,261
North West England	£1,108	£1,407	£1,161	£1,457
Scotland	£1,519	£1,584	£1,551	£1,606
South East England	£1,402	£1,671	£1,437	£1,670
South West England	£1,302	£1,562	£1,357	£1,582
Wales	£1,114	£1,382	£1,182	£1,424
West Midlands	£1,162	£1,402	£1,183	£1,419
Yorkshire & The Humber	£1,137	£1,441	£1,164	£1,519
UK average fee	£1,266	£1,529	£1,306	£1,554

Who pays for care home costs?

How much of the fees you will have to pay as a resident depends on your finances and assets, such as property. If you have to pay all the costs yourself, you are referred to as a self-funder.

If your local authority is helping you with some or all of the costs of your social care, your care is state-funded.

How much will you have to pay?

Depending on your savings and assets, you may have to pay for all the care home costs yourself. This is determined by a financial assessment, known as a means test, carried out by your local council following a needs assessment.

The means test looks at your capital to see how much money and assets you have and how it will affect your care home fees.

Your local authority will look at things like the value of your home, private and state pensions, savings and interest earned from those savings as well as some benefits.

The savings threshold is different depending on where in the country you live. If you have more than the upper capital limit, you must pay full care home fees.

If care is being funded by your local authority, but the cost of the care home exceeds this, a third party (such as a relative) can pay the remaining cost. This is known as a top up fee. This gives you the option of choosing a care home which is most suitable to your needs, rather than what you can afford.

How much savings can you have before you have to pay care home fees?

The savings and assets thresholds in the UK for 2025/26 are listed below. This is essentially how much money you can have before you have to pay for care home fees. 

Thresholds for care home fees

• England
  • Lower limit: £14,250 (will need to pay for some of your care fees)
  • Upper limit: £23,250 (will need to pay for all of your care fees)
• Scotland
  • Lower limit: £21,500
  • Upper limit: £35,000
• Wales: One limit of £50,000
• Northern Ireland
  • Lower limit: £14,250
  • Upper limit: £23,250

People with capital below these amounts can get financial support from their local authority, which will pay some or all of the costs. If your savings or income falls below the threshold or you start to run out of money, the local authority should begin paying for your care costs.

In some circumstances, the means test will not take your house into account, such as if your partner or a relative over the age of 60 lives there.

Personal budget

If you are eligible for funding from the local authority, they will set a personal budget for you. The personal budget includes the total cost of meeting your needs, how much you need to contribute and the outstanding amount the local authority has to pay.

Some people are eligible for NHS continuing healthcare funding, which is anyone deemed as having ongoing and substantial care needs, such as someone recovering from a stroke.

In this case, the NHS will meet all costs regardless of the savings threshold for care home fees.

Some people take action such as equity release so they appear to have less money in assets than they do in reality. This means the amount they have to pay for care will be reduced. Before being means tested, most local authorities will look to see if deprivation of assets has taken place.

Do people with dementia have to pay care home fees?

People living with dementia will normally be expected to pay towards their residential care costs, either as a self-funder or with help from their local authority. This will depend on their savings and assets and is determined by a financial assessment.

NHS Continuing Healthcare

A person with dementia may be eligible for NHS continuing healthcare. This means the NHS organises and fully funds their social care, including services from their local council.

However, a dementia diagnosis does not automatically make a person qualify. It depends on the severity and complexity of their ongoing health needs. Although dementia is an important factor due to the impact the condition has on an individual’s health needs, people with dementia are often assessed as having social care need rather than health care needs.

NHS Funded Nursing Care

Even if they are not eligible for NHS continuing healthcare, a person with dementia who lives in a nursing home could qualify for NHS-funded nursing care (FNC). This means the NHS pays a flat rate towards any nursing or medical care they receive.

You must live in a nursing home and first be assessed for NHS continuing healthcare. If you are not eligible but assessed as needing care from a registered nurse, you may be entitled to FNC.

What is included in care home fees?

In addition to where in the UK you live, care home costs depend on what care services you receive and the level of your needs. If a person is living with dementia, they will require a higher level of care and support than someone without dementia.

This is why nursing homes are more expensive than regular residential care, as people living in nursing homes receive higher levels of care. Read more about what types of care are available in care homes here.

Residents live in care homes 24 hours a day. So on top of care costs, care home fees include accommodation, laundry, meals, heating as well as other utility costs.

Avoid surprise care home fees and costs

When you move into a care home, always check what is covered by the fee. Some care homes charge extra for services such as hairdressing and toiletries.

Being aware of all the costs will help you plan your budget and ensures that there will be no surprises on your invoice. It will also help you decide what services you may want to reduce or add to your own or your loved one’s care plan.

Further reading

The need to move into a care home often arises suddenly and it can be overwhelming when you try to understand how everything works, from how it will be paid for to what you need to think about when choosing a care home for your loved one. Our care advice section is filled with information and advice to help you with the initial move and beyond.

Follow the links below to start exploring the ins and outs of moving into a care home.
 

• Finding a care home – A comprehensive guide on how to choose the right care home for your needs
• NHS-funded nursing care – If you move into a nursing home, the NHS may pay for the nursing care component of your fees. Find out if you qualify.
• When should someone with dementia move into a care home? – Advice on when it might be the right time for a loved one living with dementia to go into a care home.
• Who pays for a care home when the money runs out? – Living in a care home is expensive, but your local authority should step in to help if you start to struggle financially.