Care home funding in Wales 2025

Funding a care home in Wales

Planning your finances when moving into a care home in Wales can be complicated and stressful. There is a lot to take into account at what can be an emotionally difficult time for you and your loved ones.

Each country in the UK has its own thresholds for how much money you can have in order to be able to have your care fully or partially funded.

How much do care homes in Wales cost?

The average cost of a care home in the UK is £1,266 a week. The average cost of a nursing home is £1,528  a week.

Prices vary widely, depending on:

• Whether you are going to be state-funded or self-funded
• Where in the country the care home is
• The care home (luxury care homes cost more)
• The room you have
• The sort of care you need (specialist care can cost more) and how much care you need

Average figures are based on data gathered by carehome.co.uk and refer to self-funded residents

What are the thresholds for care home funding in Wales?

Who pays for your care home fees depends on how much money you have. To determine this, your local authority will conduct a financial means test to assess your finances. This will include any income you have, property, investments, shares and savings.

If you have over a certain amount, you will be self-funded, meaning you pay your care home fees yourself. If you have under a certain amount, you will be state-funded, meaning your local authority (the council) will pay your fees.

If you have shared assets, you will usually be considered to own 50% of them. There are different circumstances though, such as if you jointly own a home but your partner will still be living there.

Unlike the other UK countries, Wales has one threshold, rather than an upper limit and a lower limit. 

The threshold in Wales is £50,000.

This means that if you have less than £50,000 in capital and assets, you will likely be eligible for local authority funding. If you have over that amount, you will have to pay for your care yourself.

It is also possible for somebody else, such as a friend or relative, to pay your fees for you, either in full or a top-up fee. They are only required to do this if they have signed the contract agreeing to do so.

What funding is there in Wales to help with care home fees?

If you have certain medical needs, you may be able to have your care partially funded by the NHS through one of the following funding options.

NHS continuing healthcare funding (NHS CHC)

If you have long-term health needs, you may be eligible for NHS continuing healthcare funding (NHS CHC). This is when the NHS funds your personal care and any specialist support that you need.

To be eligible you must have an assessment that determines that you have a ‘primary health need’.

A primary health need is a long-term, ongoing physical or mental condition that requires ongoing care. This care must be focused on treating your condition, preventing it, or both.

NHS funded nursing care (FNC)

If you don’t qualify for NHS CHC, but you have been assessed as needing nursing care, you may still be able to have your care partially funded by the NHS.

NHS funded nursing care (FNC) is when the NHS pays for the nursing element of your nursing home fees.

The rate in Wales is £201.74 a week. In Wales, FNC is funded through the Clinical Commissioning Group (CCG) local to your nursing home.

To be eligible you must:

• Live in a care home that provides nursing care
• Be assessed as needing nursing care
• Not qualify for NHS CHC

Can I still claim benefits while living in a care home in Wales?

When you move into a care home, your circumstances change. 

This can mean that you no longer meet the eligibility requirements for some of the benefits you receive, or that you are now eligible for other benefits. Some benefits that you receive may now be used to pay towards your care.

This article lists each benefit and how your eligibility could change when you move into a care home.

How will moving into a care home in Wales affect my pension?

You will still receive your state pension and any private pension(s) if you move into a care home. Any pensions are taken into account as income when you have your financial means test.

State pension

If you are self-funding your care, you will continue to receive State Pension as normal.

Basic State Pension	New State Pension
This is for: •    Men born before 6 April 1951 •    Women born before 6 April 1953	This is for: •    Men born on or after 6 April 1951 •    Women born on or after 6 April 1953
£176.45 a week	£230.25 a week

Minimum Income Amount

If your care is state-funded, your pension will be used to pay for your care. 

However, to make sure you have some money of your own, some will be set aside. In Wales, this is called Minimum Income Amount.

The rate for Minimum Income Amount in 2025 is £43.90.

Private pension(s)

You’ll continue to receive any private pensions as usual.

If you have a spouse or partner who will continue living at home when you move into a care home, you can choose to pass half of your private pensions to them. This is to help to protect them from financial hardship.

Find out more details about how your pension will be affected when you move into a care home here.

Pension Credit

If you receive Pension Credit, your eligibility will remain the same when you move into a care home as it was when you lived in your own home.