Care home costs (and how to afford them in 2025)
The rising cost of care homes has become a pressing concern in our ageing society, with prices surging 20% in the last five years*. For many families, these escalating fees create financial strain and emotional stress too. While care homes should provide dignity and comfort for our loved ones, their costs and fees often feel exorbitant.
However, there’s hope. While the subject can be difficult to navigate, various funding options and support systems are available. At Farley Dwek, our goal with this guide is to help you understand care home costs and discover ways to make them more manageable.
*Source: LaingBuisson News (2024)
In this article, you’ll learn:
- How much does a care home cost in the UK?
- How much do care homes cost per week?
- Why care home fees are so expensive?
- How much do you have to pay?
- How can you avoid paying care home costs?
- What happens if you refuse to pay these costs?
- Do dementia sufferers have to pay?
How much does a care home cost in the UK?
Care home costs in the UK vary significantly, with weekly fees ranging from £800 to over £2,000. For families already managing multiple care responsibilities, these figures aren’t just numbers, they often represent real sacrifices and difficult decisions.
While we believe that healthcare should be provided regardless of financial means, the reality is different. The fact is that quality and specialised care is more expensive, putting a strain on individuals who need a higher level of attention.
However, the price of care also varies depending on the facilities’ location, amenities, room type, newness, and special requirements. First, we’ll go through the national weekly cost average depending on the level of care, and then we’ll go through what’s included in these fees.
As mentioned above, weekly prices are subject to different factors. That said, the level of care is the main determiner in deciding which care home is best suited for someone:
Residential care
For those who don’t need nursing, the weekly average is £1,000 – £1,500 per week.
Nursing care
For individuals who are required to have 24/7 medical support, the weekly average is: £1,500 – £2,000+ per week.
Specialist care
For people with dementia, Alzheimer’s, bariatric, or more complex needs, the weekly average is: £1,800 – £2,500+ per week.
What’s included in care home fees?
When looking at care home costs, it’s helpful to understand what these fees cover. Here’s what’s included based on the level of care:
Residential Care includes:
- Furnished private or shared room
- All meals and refreshments
- Basic personal care (washing, dressing, toileting)
- Housekeeping and laundry services
- Social activities and entertainment
- 24-hour support from care staff
- Building maintenance and utilities
- Emergency alarm systems
Nursing Care includes all residential care features, plus:
- 24-hour nursing care from registered nurses
- Regular health assessments
- Medication management
- Basic medical equipment
- Wound care and monitoring
- Coordination with NHS services
Specialist Care includes all nursing care features, plus:
- Specialised medical equipment
- Higher staff-to-resident ratio
- Specially trained staff
- Advanced security features
- Tailored therapy programs
- Specialist nutrition management
- Complex medical care management
Now, even though these figures might seem overwhelming, there’s an important distinction between what care homes charge and what you’re required to pay.
In this next part of the article, we’ll go through your rights and how you can get funding. There are different options that make care more accessible by covering costs and reducing the financial burden.
How much do you have to pay?
While care home costs are high, you won’t always have to cover the full amount. This means you don’t necessarily have to worry about losing your personal assets or impacting your children’s financial future.
It is true that your contribution towards care costs is largely dependent on your current capital, which includes your savings, assets, and property. However, this doesn’t mean you’ll always be out of pocket. In some cases, you may be eligible for funding through NHS Continuing Healthcare (CHC), regardless of your capital.
Still, it’s helpful to understand how personal capital affects the contributions you’d be expected to pay.
If your capital is:
- Over £23,250 – You’ll need to self-fund your care.
- Between £14,250 and £23,250 – The council will contribute, but you must pay from your pension and a tariff income.
- Under £14,250 – The council covers most costs, and you only contribute from your income.
How to avoid paying care home costs
After seeing these costs, you may be relieved to know there are legitimate ways to manage or even avoid care home fees entirely – regardless of your personal capital.
Let’s explore these options…
NHS Continuing Healthcare (CHC) funding
As mentioned earlier, CHC funding is perhaps the most thorough solution. It covers all care home costs regardless of your financial situation. This funding is available when your primary need for care is health-related rather than social care.
There’s no specific list of medical conditions that qualify for CHC funding, but people with the following conditions are often eligible:
- Advanced dementia
- Complex physical disabilities
- Muscular or respiratory disorders
- Terminal illnesses
- Limited movements or paralysis
Additionally, even if you’ve already paid care home fees, you might be able to reclaim them through a retrospective review. These claims can go back to 2012, potentially recovering substantial amounts for families who’ve already paid for care.
Find out how to get CHC funding for dementia or learn more about Previously Unassessed Periods of Care (PUPoC).
Funded Nursing Care (FNC)
If you’re not eligible for full CHC funding, you still might qualify for Funded Nursing Care (FNC). This provides financial help with nursing care costs if you’re in a nursing home, even if you’re otherwise self-funding.
There are two rates for FNC:
- Standard rate: £235.88 per week
- Higher rate: £324.50 per week
With this option, you won’t need to complete additional paperwork. The FNC assessment is typically conducted alongside the initial CHC assessment, making the process generally efficient and straightforward.
Deprivation of assets
Deprivation of assets refers to deliberately reducing your savings or transferring property and money to avoid paying care fees. While this might seem like a practical solution, it can lead to serious consequences.
Local authorities have strict powers to investigate your financial history during means-testing. If they determine you’ve intentionally reduced your capital to avoid care costs, they can:
- Treat you as still owning those assets
- Include them in your financial assessment
- Require you to pay care fees anyway
- Create additional legal complications
If you are thinking of doing this, the timing of any asset transfers is crucial. If actions were taken before you could reasonably foresee needing care, they might be considered legitimate. However, recent transfers or gifts are likely to be scrutinised.
Before making any decisions about care funding, it’s crucial to get professional advice. Farley Dwek’s experts can review your situation through an initial consultation and guide you through the most appropriate funding options for your circumstances.
What if I refuse to pay care home fees?
Unfortunately, you can’t simply refuse to pay. If you have the means to cover care, your local authority will assess your finances. If your capital exceeds £23,250, you’ll need to self-fund.
The good news is that care home fees can be fully covered through CHC funding if eligibility is based on medical needs rather than finances.
Also, if you’re not the one needing care, you’re generally not responsible for the fees. At Farley Dwek, we’re committed to clearing up myths about funding and helping you understand your rights.
Do dementia sufferers have to pay care home fees too?
Dementia is a progressive condition, meaning care costs will only increase and may become overwhelming.
CHC funding can be the best option for dementia or Alzheimer’s patients, as it covers 100% of care home fees if their health needs meet the criteria.
Many families are wrongly advised that dementia care must always be self-funded. To learn more, read our in-depth guide: how to get CHC funding for dementia.
Advice on care funding
Understanding care home fees can be complicated, but you don’t have to figure it out alone. At Farley Dwek, we specialise in securing NHS Continuing Healthcare (CHC) funding and providing expert advice on care costs.
Speak to us today for a free initial consultation. One of our experts will assess what funding you could be entitled to.
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