How Much Does A Residential Care Home Cost On Average - Kingfishers Nursing Home
Are you in the process of moving a loved one into a care home? If so, knowing exactly how much a care home costs is essential.

Fees can vary widely depending on where you live, the type of care required and your personal finances. A clear picture of what to expect will help you make informed decisions and avoid financial surprises. Keep reading as we break down the real costs of residential care homes in the UK and the various factors that can impact those numbers.

How Much Does a Residential Care Home Cost on Average?

According to Age UK, the cost of a residential care home in the UK depends on the level of care required and location. However, here’s a general idea of the average fees:

Residential care home

The average cost for basic care in residential care in the UK ranges from £800 to £1,160 per week if you are self-funding. This works out to roughly a maximum of £5,026 per month or £60,320 per year. These costs can be even higher if opting for a more premium care home.

Nursing care home

Paying for nursing care, where residents require more medical support, is approximately £1,410 per week, which equates to £6,110 per month or £73,320 per year.

Specialist care

Homes that offer specialist care, such as dementia, tend to charge more. Residential dementia care averages £1,205 per week, while nursing dementia care costs around £1,447 per week.

What Can Affect Care Home Pricing?

Paying for a residential care home doesn’t follow a one-size-fits-all formula and fees are more complex than they seem. So, we’re here to help with some matters you must take note of when calculating costs, such as:

Location

Care home costs can vary dramatically depending on your location. Homes in regions like London and surrounding areas are significantly more expensive than those in Northern England, Scotland or Wales. The cost of living and demand for care in different areas will directly influence the price.

Type of Care

Residential care homes, which offer essential day-to-day support, are less expensive than nursing homes, which provide more intensive medical care. Additionally, specialist care comes with higher fees due to the expertise and additional resources required.

Personal Finances

Your financial situation depends on how much you’ll pay for a care home. The government uses a financial assessment (means test) to determine if you need to pay all or part of the fees. People with savings and assets above a certain threshold are classed as ‘self-funders’ and must cover their own costs. However, those below the threshold may get financial help from their local authority.

Care Home Provider

Private care homes vary in cost depending on the provider. Premium care homes that offer luxurious facilities, private rooms and additional services like specialised activities or therapies will charge more than standard care homes with more basic amenities.

Additional Services

Beyond the basics, care homes may charge for extras such as hairdressing, outings, special meals or even medical supplies. These additional services can add up, so it’s important to ask what’s included in the base fee and what’s considered an extra cost so you aren’t shocked with extra bills down the line.

Who Pays for Care Home Fees?

Paying for residential care can be overwhelming, but understanding how fees are covered can help you plan. Here’s a breakdown of how care home costs are paid for:

Local Council Support

Depending on your financial situation, your local council can help with care home fees.

Here’s how it works:

Step 1. Care Needs Assessment
The council will assess whether you or your loved one needs residential care.

Step 2. Financial Assessment
If residential care is deemed necessary, the council will review your income, like pensions, and assets, like savings and property value, to decide if you’re eligible for financial help.

How much will the council pay?
  • Over £23,250 – You’ll pay the full cost of your care as a self-funder.
  • Between £14,250 and £23,250 – The council will contribute, but you’ll need to pay a portion of your income.
  • Under £14,250 – Your local council will pay most of the fees, with a small contribution from your income.
How does the financial assessment work?

The financial assessment looks at your income and capital to decide how much you’ll contribute to care:

  • Income such as pensions.
  • Capital such as savings or property value (although some assets, like certain disability benefits, may be excluded).
  • Your home may be included in the assessment unless a spouse, partner or certain relatives (e.g., over 60) live there.
  • If you have capital between £14,250 and £23,250, the council assumes you have £1 of extra income per week for every £250 of capital. For example, if you have £15,000, you’ll pay £3 per week in tariff income.

NHS Funding

In some cases, the NHS can cover care home costs under certain conditions:

NHS Continuing Healthcare (CHC)

If your needs are mainly health-based and complex, you may qualify for free care under NHS continuing healthcare. Eligibility is strictly assessed.

NHS-Funded Nursing Care (FNC)

If you’re not eligible for CHC but need nursing care, the NHS will pay a set amount directly to the care home for nursing services.

Self-Funding Your Care

As mentioned, if you have savings or assets over £23,250, you’ll be expected to fully pay for your care as a self-funder. However, options like equity release or deferred payment schemes may be available to help cover the costs without selling your home upfront.

What Happens When Funds Run Low?

If your savings begin to deplete over time:

  • When your overall funds drop below £23,250, you can contact the council and ask them to reassess your situation.
  • Once you meet the threshold, the council may step in to contribute to your care costs.

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Avoiding Unexpected Costs in Care Home Fees

The basic fee may only cover some things. Knowing precisely what you’re paying for helps avoid unexpected costs and minimises stress.

Here’s a breakdown of what’s typically included in care home fees and what you might need to budget separately.

What’s Typically Included in Care Home Fees?

Most care home fees will cover the essentials needed for daily living. This can include:

  • Accommodation – A private or shared room with basic furnishings.
  • Meals – Three daily meals, snacks and beverages, often catered to dietary needs.
  • Basic care services – Assistance with day-to-day activities, such as bathing, dressing and mobility.
  • Utilities – Heating, electricity and water are typically covered within the fee.
  • Laundry services – Regular washing and cleaning of personal clothing and bed linens.
  • Housekeeping – General cleaning and upkeep of the resident’s room and common areas.
  • Social activities – Many care homes offer activities and events to keep residents engaged. However, the scope of these activities may vary.

Watch Out For Additional Costs

While the base care home fees cover a lot, some services are often charged as extras. These costs can add up quickly, so you should ask about them beforehand:

  • Personal care services – Hairdressing, manicures or podiatry are usually not included in the base fee.
  • Medical supplies – Items like incontinence pads or special dietary supplements may cost extra.
  • Specialist care – If your loved one requires specialist care, such as for dementia or other medical conditions, there may be an additional charge.
  • Private therapies – Physical, occupational and other specialist treatments may not be included and could require additional payment.
  • Outings and entertainment – While in-house activities are often included, external outings or special events can sometimes come at an extra cost.
What to Ask the Care Home

Avoid surprises and ask the care home for a detailed breakdown of what’s included in their fees. Some things to ask:

  • What is covered in the basic fee?
  • Are there additional costs for personal care or medical services?
  • Will the price change over time, and if so, how often?
  • Are there optional services available and how much do they cost?
  • How are families informed of any extra charges that may occur?
Managing Additional Costs

1. Make sure you account for these potential extras when budgeting for care home costs.

2. Sometimes, homes may offer a capped rate for certain services or a comprehensive fee that includes most extras. It’s worth exploring these options to manage costs effectively.

3. Be thorough and ensure you understand all terms before signing any agreement, preventing unexpected financial burdens later on.

Transparent Costs, Confident Choices

Understanding the full extent of care home fees can help you make the right financial and care decisions for yourself or a loved one.

Before making your decision, take the time to ask the right questions and ensure that all potential costs are clear.