Care home funding options: who pays and what help exists

If you need residential care, the local authority assesses your care needs and then your finances. Capital above £23,250 in England (2026 levels — check current thresholds) means you pay the full fee. Between the upper and lower limits (£14,250) you contribute from capital and most of your income.

Your home is usually included in the means test if no eligible relative still lives there, but a 12-week property disregard may apply at the start of permanent care. Care at home uses different rules — the home is not counted in the capital test for non-residential care.

If you prefer a more expensive home than the council's usual rate, a relative can pay a third-party top-up. You cannot use your own assets for a top-up if the council is funding your placement.

When care needs are primarily health-related — complex nursing needs, unstable conditions, unpredictable care — the NHS may fund the full package through Continuing Healthcare (CHC). This is not means-tested.

A multidisciplinary team scores needs using the Decision Support Tool. Fast-track CHC exists for people nearing end of life. If CHC is refused, you can request a review and appeal through the NHS complaints process.

NHS-funded Nursing Care Contribution pays a weekly amount toward nursing care in a care home even when full CHC is not awarded — it is paid directly to the home.

Self-funders choose any home that accepts private payers and negotiate fees directly. Shop around — weekly rates vary widely by region, room type and CQC rating.

Deferred payment agreements let the council pay fees secured against your home, repaid when the property is sold or from your estate. Interest and setup fees apply — legal advice is essential before signing.

Long-term care insurance is rare in the UK but some older policies exist. Equity release can fund care but reduces inheritance — regulated advice is required.