A Complete Guide to Funding Care Home Fees in the UK 2025

Paying for care home fees in the UK can feel confusing and stressful. Many families are caught off guard by how much care actually costs and what funding help is available.

You might be wondering: Do I have to sell my home? Will the NHS help? Who pays if my savings run out?

The good news is, there’s a clear system in place, and this blog will walk you through it in plain English.

We’ll explain who pays for care home fees, how the means test for care home fees works, and how to apply for care home funding step by step.

How Much Do Care Homes Cost in the UK in 2025?

Let’s look at fees first before we talk about who pays them or how to apply for help.

The cost of care homes in the UK depends on two main things:

• The type of care needed: residential (daily support) or nursing (medical care by a registered nurse).
• The location: prices vary a lot between regions.

Here’s a breakdown of average weekly costs across the UK in 2025:

Region	Residential Care (Weekly)	Nursing Care (Weekly)
London	£800 – £1,300	£1,100 – £1,600
South East	£750 – £1,100	£950 – £1,400
Midlands	£600 – £900	£800 – £1,200
North of England	£550 – £850	£750 – £1,100
Scotland	£600 – £900	£800 – £1,200
Wales	£550 – £850	£750 – £1,050
Northern Ireland	£500 – £800	£700 – £1,000

Note: These are average ranges. Actual costs may vary depending on the care provider, care needs, and whether you are self-funding or supported by your local authority.

Additional Notes:

• Self-funders often pay higher rates than those supported by the council.
• If you need specialist dementia care or complex nursing support, the fees can go even higher.
• In most cases, moving someone to a cheaper region won’t reduce costs unless the local authority agrees and there’s a valid reason (such as being closer to family).

Who Pays for Care Home Fees (and How the Means Test Works)

Paying for care home fees in the UK depends on two main checks: your care needs and your finances. Once the local council agrees you need a care home, they’ll carry out a means test to see how much you can pay—and whether they can help.

Capital (Savings + Property)	Who Pays?
Over £23,250	You pay full fees (self-funding)
£14,250 – £23,250	You pay some; council pays the rest
Below £14,250	Council pays; you contribute income

• In Wales, the capital limit is £50,000.
• Scotland and Northern Ireland have different thresholds.

Income and Allowance

If you qualify for help, most of your weekly income (pensions, benefits) goes towards care. You keep a Personal Expenses Allowance of £30.65/week for personal use.

Is Your Home Included?

Your home counts only if:

• You live alone and move into care permanently
• No spouse, disabled relative, or elderly dependent lives there
• In the first 12 weeks of care, your home is not considered in the test. If needed, you can delay selling it using a Deferred Payment Agreement.

NHS Funding Options

• NHS Continuing Healthcare funding (CHC) covers full costs if your needs are health-based
• NHS-Funded Nursing Care (FNC) gives a fixed weekly amount if you need a nurse but not a full CHC

Top-Up Fees

If your chosen care home charges more than the council’s rate, a family member may pay the extra through a top-up agreement.

Other Ways to Pay for Care Home Fees

If you’re not eligible for full council or NHS funding, or if you’re self-funding and looking for options to manage costs, there are a few other ways to cover care home fees.

1. Using Property Assets

Many people choose to sell their home to pay for long-term care. However, if selling immediately isn’t ideal, you can ask your local council for a Deferred Payment Agreement. This allows you to delay payment until the property is sold later or after your death. The council places a legal charge on the home, and interest may apply.

2. Immediate Needs Annuity

An immediate needs annuity is a type of insurance product that provides a guaranteed income for life to cover care fees. You pay a one-time lump sum, and the insurer pays regular amounts directly to the care provider. It can give peace of mind and protect remaining assets, but it’s a permanent decision, so financial advice is recommended.

3. Support from Family Members

In some cases, children or other relatives may contribute to care fees, especially through top-up payments if you’re receiving local authority funding but want to stay in a more expensive home.

How to Apply for Care Home Funding in the UK

If you or a loved one needs help paying for care, the first step is to contact your local council’s adult social care team. You can apply whether you’re looking for care now or planning ahead.

Step 1: Request a Care Needs Assessment

This is a free service where a social worker visits to assess your physical and mental health needs. It determines whether a care home is necessary or if home care services could be a better fit (especially in areas like Wolverhampton, where community care is well established).

The council must carry out the assessment, even if you have high savings and expect to self-fund.

Step 2: Get a Financial Assessment (Means Test)

If the care needs assessment confirms that a care home is required, the council will arrange a means test for care home fees. This looks at your income, savings, and property. Based on the outcome, the council will calculate:

• Whether you qualify for funding
• How much you’re expected to contribute
• Whether any temporary support applies (e.g. 12-week property disregard)

Step 3: Explore NHS Funding

If your needs are health-related, ask for an NHS Continuing Healthcare funding assessment. You can apply directly through your GP or local NHS team. If approved, the NHS pays the full cost of care.

It’s helpful to involve family early in the process and keep records of all communication. If you’re unsure, charities like Age UK or Citizens Advice can guide you through the application.

Conclusion

Planning for care home fees can feel overwhelming, but knowing your options makes a big difference. Whether you’re self-funding or applying for support, understanding how savings, property, and income affect your eligibility is key.

Don’t wait until a crisis forces quick decisions. Speak to your local council, get a care needs assessment, and explore NHS and financial support options early.

If you’re not ready for full-time care, you may also want to consider home care services in Wolverhampton, which offer flexible support while staying in your own home.