Paying for residential care in England might seem complicated. If you're looking for a care home or supported living place for yourself or a loved one, you might be alarmed at the costs – and wonder how you can afford to pay for care.
Unlike healthcare, social care services are not usually provided free of charge. So, if you or a loved one need personal care, you'll need to pay for it.
Fortunately, there are options available. How much you pay is usually means-tested, so you may not need to pay the full care home costs yourself. Your local council may help you with care home funding.
There are four main ways that most people pay for residential care in the UK:
- Self-funding
- Local authority funding
- NHS continuing healthcare funding
- NHS funded nursing care
Many people use a combination of these when paying for care home fees.
In this guide, we'll look at residential care costs, and explain the different ways that you can pay for care in England.
What is the price of long term care in England?
Care costs can vary widely, depending on the type of care you're considering – as well as your location.
In 2026, you should expect to pay between £1,000 and £2,800 per week for residential care in the UK.
Care homes with nursing are usually more expensive than those that don't offer nursing care. Facilities that provide specialist care, such as dementia care homes, will often also have a higher cost.
Weekly costs may be lower in some supported living schemes. However, depending on the organisation, you may need to pay separately for personal care visits and housekeeping. In contrast, care and nursing home fees usually include care costs, as well as meals, laundry, and housekeeping.
Home care visits may cost less than residential care, especially if you or your loved one don't need many hours of care each week. However, if you need 24-hour care, domiciliary care can be just as expensive as residential care. Additionally, many people need to make changes to their home so that it's suitable for someone with care needs or mobility issues. If you need to add a downstairs bathroom, widen doorways, or make other significant changes, the costs can add up.
Paying for care: Local authority funding
Your local authority may be able to help you with care home costs.
Local authority funding for care homes is means tested. In England, your local authority will generally help to pay for care costs if your savings and assets are less than £23,250.
- If you have less than £14,250, they will usually fully fund your care.
- If you have more than £23,250, you will usually have to pay the total cost of your care yourself.
- If you have between these amounts, you'll usually get some funding, and also need to contribute towards the costs yourself.
If you are eligible for local authority funding, you can choose to arrange your care and manage payments yourself, or have the council arrange care for you.
If you choose to manage your personal budget yourself, you'll receive a monthly direct payment into your bank account, so you can pay the care costs yourself.
If you choose to have the council organise your care, they'll pay your care home directly.
When the local authority funds your care, they will give you a certain amount of money. However, if you choose to move to a care home that costs more than this, a family member or friend can pay the difference. This is known as a top-up fee.
Do I qualify for local authority funding?
You may qualify for funding from your local authority if:
- Your local authority recognises that you need personal care.
- You have less than a certain amount of income, savings, property and other assets.
Even if you weren't eligible for support when you first moved into residential care, your financial situation may change over time. If your savings and income fall below the threshold, you can ask for another financial assessment.
How do I apply for local authority funding for care homes?
To apply for local authority funding, you'll need to have two assessments:
A care needs assessment, where a social care professional will look at how you can manage everyday activities, such as washing, dressing, and preparing meals. This assessment might take place in person, over the phone, or via video call. After your care assessment, your local authority will decide what support you need.
A financial assessment, which looks at your income, savings, and other assets to see if you're eligible for local authority funding. A financial assessment officer will ask about your earnings, pensions, benefits, property and savings.
You can apply for a care needs assessment online. Once you've had a care assessment, you'll have a financial assessment.
Paying for care: NHS continuing care funding
Some people are entitled to NHS continuing healthcare. This covers the full cost of their care, including healthcare, personal care, and care home costs.
NHS continuing healthcare supports adults with a primary health need. This means that the majority of their care is related to managing their health, rather than just social care needs. However, continuing healthcare funding will also cover social care for eligible clients.
You can use NHS continuing healthcare to fund residential or domiciliary care. You won't usually need to pay any additional care fees, or need support from your local authority.
Do I qualify for NHS continuing healthcare funding?
You may qualify for NHS continuing healthcare if you need support to manage your health needs. These health needs may usually be complex, long-term, and unpredictable. Your eligibility will depend on your needs, rather than a particular condition or diagnosis.
NHS continuing healthcare is only available for adults. However, children may qualify for a continuing care package if they have complex needs as a result of illness or disability. If their GP, hospital, or existing community services cannot meet their needs, the integrated commissioning board (ICB) will assess your child and determine whether they qualify.
How do I apply for NHS continuing healthcare?
If you believe you are eligible for NHS continuing healthcare, you can ask your GP, nurse or social worker to arrange an initial assessment.
Paying for care: NHS funded nursing care
Some people will be eligible for NHS funded nursing care (FNC), where the NHS pays for the nursing care component of nursing home costs.
Funded nursing care only pays for the nursing component of your care. This is currently set at £254.06 per week.
You will be responsible for paying the rest of the nursing home costs yourself, or with support from your local authority. FNC does not affect your entitlement to other benefits, so you may still be eligible for funding from your local authority.
Do I qualify for NHS funded nursing care?
If you live in a care or nursing home and receive nursing care, and you don't qualify for NHS continuing healthcare, you may be eligible for FNC.
Funded nursing care is not means tested, so your income and assets won't be taken into account.
How do I apply for NHS funded nursing care?
In most cases, you won't need to apply for NHS funded nursing care – you should apply for NHS continuing healthcare instead. If you're not eligible for continuing care funding, you may be told that you qualify for funded nursing care.
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Paying for care: Self-funding
Some people pay for their care themselves, if they don't qualify for any support from the NHS or their local authority. They may pay out of income or savings, depending on their circumstances. Some people may sell their property to fund their care.
Even if you plan to self-fund your care, you're still entitled to a free needs assessment through your local authority. This can help you understand what support you need.
Do I qualify for self-funding?
Yes, everyone has the option to self-fund their care.
How do I find residential care as a self-funder?
If you're planning to pay for your care yourself, you can contact care homes or nursing homes directly. You can find care homes, nursing homes, and other supported living properties here on Find Your Room.
Will I have to sell my home to pay for care?
Some people don't qualify for local authority funding because they have savings or assets above the care funding threshold. If you are a homeowner who can't pay for care out of your savings or income, and the local authority won't cover your care costs, you may need to sell your home to raise the money.
When you apply for local authority funding, they often take the value of your home into consideration during your financial assessment – but there are exceptions.
Local authorities will usually not take the value of your home into consideration if…
- You only need short term support in a residential facility.
- You plan to receive care at home (also known as domiciliary care).
- Your partner still lives in the home.
- Your minor children still live in the home.
- Relatives over 60, or disabled relatives under 60 still live in the home.
Local authorities may take the value of your home into consideration if…
- You live alone and plan to move into a care home.
- You live with adults who are not your partner, are not disabled, and are aged between 18 and 59.
If you receive NHS continuing healthcare or can self-fund your care through your income or existing savings, you won't need to sell your home to pay for care.
Conclusion: Paying for residential care
Care home funding can seem like a complicated topic. If you've never looked into care homes, nursing homes, or supported living schemes before, you might be alarmed to find out how much they cost per week. However, depending on your circumstances, you may be able to get help with paying for care.
Your local authority may pay towards your care costs, or fully fund your care home fees. Alternatively, some people may qualify for help from the NHS, or need to self-fund their care.
Your GP, social worker, or district nurse can often give you personalised advice. You can also request a care needs assessment from your local authority. If you're self-funding, or have a particular home in mind, you can contact them directly for further information.
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