Care home fees: How they work and how to get help
By Bronte Carvalho, Content Sub-Editor
1 Oct, 1970
Planning for residential or nursing care and its associated costs is seldom a cheerful conversation, but it's often a very necessary one. Boring Money research found that the top trigger for retirement is health-related issues, with 17% of retired people telling us this was their primary reason for retiring when they did.
Now that we're all living longer, the number of people who will need residential or nursing care at some point in their lives is rising. In 2023 the Office for National Statistics (ONS) estimated that 372,035 Brits were living in care homes, up 3.1% from a year earlier. But how can you prepare for care costs and how to know what to expect?
How much do care homes cost?
How much are care home fees? Where you live, how much hands-on care you need and which care home provider you choose can all play a part in how much you need to pay for a space in a residential or nursing home.
What is the average cost of a care home?
According to the charity Age UK, the average cost of a care home in the UK in 2023 is around £800 a week. This increases to roughly £1,078 per week if nursing care is required. These are average figures and the real costs can differ widely depending on where in the UK you are and the level of care you need.
Care home fees around the UK
The average fees you can expect to pay for residential and nursing homes differ widely around the UK. In London, for example, care home directory website Lottie estimates the average cost of residential care to be £1,118 per week. In Yorkshire and the Humber, however, the average is around significantly less at £830.
The table below outlines average fees around the UK for residential and nursing home care, in order of residential cost.
Location | Average residential care fees | Average nursing home fees |
London | £1,118 | £1,230 |
South East England | £1,040 | £1,157 |
South West England | £1,015 | £1,118 |
Scotland | £974 | £1,025 |
East of England | £929 | £1,053 |
UK | £928 | £1,025 |
England | £926 | £1,024 |
Wales | £903 | £1,032 |
West Midlands | £901 | £995 |
East Midlands | £839 | £935 |
North West England | £836 | £941 |
Yorkshire and the Humber | £830 | £933 |
North East England | £830 | £856 |
Source: Lottie. Correct as at October 2023.
Is there a cap on care home fees?
In September 2021, the UK government announced a plan to reform social care fees and introduce a cap on maximum lifetime contributions. As of October 2023 - in England only - the most anyone will have to pay for 'personal care' is £86,000 in total over the course of their lifetime.
This applies to everyone in England, so even if you're a high earner, you won't need to pay more than £86,000 towards the cost of your care. Bear in mind however that this new cap does not count any personal care you've received before October 2023.
The charity Care UK states that 'personal care' includes 'residential care, nursing care and support needed, whether it’s with washing, dressing, mealtime assistance or managing health problems'. In other words, care and nursing home fees will be included and count towards the cap - but only if you begin paying for them from October 2023 and onwards.
Unlock this article to continue reading
