How Much Do Care Homes Cost?

The cost of care in the UK is amongst the most expensive in the whole of Europe. This can cause many prospective careseekers and their families to feel distressed at the thought of a move into care and for many people, it is unachievable, especially with the cost of living crisis.

In this blog, we look into the average cost of care homes, the financial support services that are offered through your local council or your local NHS trust, and how care homes structure their fees.

Care Home Fees in the UK

Every care home or care organisation will have a different financial structure which is normally based on the kind of services being provided as well as additional factors such as location and the facilities that the home has to offer.

Fees depend on the type of care provided and many care home costs are paid at a fixed rate either weekly or monthly. However, some care homes offer fees that are pay-as-you-go, meaning that every cost is taken into account and invoiced to the individual using the services. When on a pay-as-you-go structure, you might find that fees differ between each invoice.

Some care homes offer an all-inclusive package, whilst other care homes fees may only cover the cost of the care services that are being provided and any personal care and social activities may come at an additional cost. This is something that you would need to consider when looking at both care homes and your finances when considering a move into a care home.

Average Cost of Care Across the UK

Reserarch shows that residential care costs can range between £27,000 to £39,000 per year or the average weekly cost of £760 per week. Specialist care is normally more expensive, with the average nursing home cost being £960 per week.

When looking into care homes, it is important to know that location can play a massive part in the cost of care. Much like buying a house, location is a key factor in deciding what care home to choose. Moving into a care home or nursing home in the South of England will cost considerably more compared to homes in the North West. Due to the location and demographics of individuals, London is typically the most costly area in the UK for care.

Another factor to consider paying attention to is what kind of facilities the care home has to offer and if they are included in the overall fees as this can alter costs significantly, especially if it's an all-inclusive home. It is important you outline what is and what isn't included in the costs of the care homes that you are considering to avoid paying unexpected expenses further down the line.

Residential Care Home Fees

Home costs will vary depending on what care service you are using. Residential care is normally on the lower end of the scale as the individual using this service is still rather independent but is seeking companionship or additional support with personal care and day-to-day activities. When living in a residential care home, your accommodation, meals and personal care are usually covered as a standard.

Nursing Care & Dementia Care Costs

On average, nursing care or dementia care is the most expensive because of the more intensive requirements of the care seeker. This is because the person receiving nursing care will most likely be more dependent on the home's nurses and care professionals and may even require 24-hour assistance. Within these costs, accommodation, meals and cover personal care costs are all included as well as more specialist support, and medication management and administration.

Respite Care Costs

When someone requires care on a short-term basis due to an illness, an operation or a caregiver's absence, individuals may use a respite care service. This type of care is usually provided for a few weeks or months, depending on how long the service is required. Fees will still be dependent on the needs of careseekers, but are overall less due to the short period of care required. Care homes and nursing homes still have the same administration process for these individuals and will receive the same as other long-term residents with regard to care plans, accommodation, meals, and facilities.

What to Expect to be Included in Care Home Fees

All care homes and nursing homes are different in how they structure their fees so it is difficult to truly know what is included without asking the home directly.

Normally, homes across the UK will make sure their fees cover as a standard; meals, accommodation and care and support services. Homes may then add a cost for additional services such as hairdressing, activities and personal expenses unless they are an all-inclusive care home. When looking into care homes, it is important to ask what additional services and amenities they have to offer in their fees and then compare with other care homes that you are considering to see what is the best option for your care needs and finances.

Living in an All-Inclusive Care Home

Over the past few years, more and more people are considering a move into an all-inclusive care home because of the varied services and facilities being provided and for the reassurance of having a fixed rate which can be either paid per week or per month.

All-inclusive homes can cost slightly more but many people prefer to pay this way to avoid paying any unexpected costs that a pay-as-you-go structure may have. Another factor that you may want to consider is the cost of living crisis in the UK. Many older people get peace of mind knowing that they don't have to worry about energy bills or other utility costs with an all-inclusive care home as all the costs are included.

Many all-inclusive care homes also offer a wide variety of in-house facilities such as a cinema room, hair salon and sensory room. Residents may use these as they wish and get to benefit from having access to many different facilities under one roof. Even with all-inclusive care homes, it is important to find out whether they do have additional services that come at an additional cost, such as hair colouring or personal newspapers.

How to Pay For Care

There are several ways you can pay for care costs. However, it is normally expected for the individual in care or a family member of theirs to cover these costs.

As discussed, the cost of living within a care home or nursing home can be very expensive and a massive financial commitment which many people may struggle with, so it can be useful to explore other options which include local authority funding support and NHS-funded nursing care.

These types of financial support are considered after a financial assessment of the individual's personal savings and assets and in some cases the level of care that they require. If you are able to pay for your own care costs, it will always be recommended to speak to someone who can offer you financial advice, as they can assess if you can afford the fees for a long period of time without getting into financial difficulty.

How to Get Financial Help Towards the Cost of Your Care

If you are seeking local authority funding to help support you to pay for care costs, you will have to do a means test which will determine if you are eligible. This means test will assess an individual's personal financial situation like their savings and assets.

However, if someone requires a significant amount of medical care, they may be eligible for NHS-funded nursing care better known as NHS Continuing Healthcare funding (CHC). A medical professional would have to do an assessment of the person needing care before an application is done. This kind of financial assistance is depending on an individual's medical needs and a means test from local authorities won't be required.

If you do not qualify for financial help from your local council or the NHS Continuing Healthcare but still need support, you can apply for a deferred payment agreement with your local authority. This is when your local authority pays for care costs with a loan until some assets are sold off, normally a property. If it is concluded you can pay for a portion of your care costs, you could also apply for a top-up fee. This is when your local council helps you pay the remaining cost of your care.

What is Included in Local Authority Support

Local council funding is financial support given to those who will struggle to pay for their own care fees.

When applying for this, a means test is required, which is a financial assessment. To qualify you have to be below a certain savings threshold, which includes an individual's private and state pensions. If approved it will determine your personal expenses allowance.

It is important to note that if you get approved for this support, the local authority pay only for your basic care home services like accommodation, meals and nursing services. Any additional expenses such as social activities, beauty treatments and transportation will have to be self-funded by the care seeker.

When applying for residential care homes or nursing homes it is important to note that not all care homes accept funding from a local council, so it is a good idea to ask if they accept this kind of financial support when you make your initial enquiry.

NHS Continuing Healthcare and What to Expect

If someone requires around-the-clock medical care, they may be eligible to seek support from the NHS. Normally in a nursing care setting, NHS Continuing Healthcare pays for care home fees and any other medical expenses.

This kind of funding is secured in a different way compared to funding from your local council as it is not done by a means test. This is because a medical professional has to determine if someone's healthcare needs require more intensive support and will assess an individual's physical and mental health. Those who need to use this kind of support often need support by medical professionals like a registered nurse on a 24-hour basis due to a complex illness or disability.

Any additional expenses that are not medical will have to come out of the personal budget of the person living in care.

Self-Funding Your Care Home Fees

If you are able to pay the full cost of your care, you won't be able to get support from your local authority or the NHS.

You would be considered as being a self-funder if your upper capital limit is more than £23,250 or you own your own property. This will make the care seeker or a family member responsible for paying for care costs, so you will have to make sure that you are able to continue paying for care home or nursing home costs for a long period of time.

If you have been declined financial help from your local authority, it may be because your savings and assets are not below a certain savings threshold. If you feel you cannot pay for all of the care home costs or nursing home costs, you might be able to approach your local council for a top-up fee, an equity release or a loan until assets are sold to help pay towards the cost of care.

It is important to make sure that you do not put yourself or a family member into financial difficulty and it is recommended to speak to a financial advisor. Some care homes may provide a care costs calculator to help you work out how much you will be paying as fees can vary depending on what is required.

Government Introducing Care Home Fees Cap 2025

Last year, the UK government announced that from October 2025 there will be a cap on care fees. This means personal care fees will be capped at £86,000. Any other expenses like additional services, such as nursing care, will not be covered.

With an ageing population who are seeking to reside in care homes, the government has recognised the financial difficulty of those trying to afford to live in a care home or nursing home. The care home fees cap is being introduced to provide reassurance to elderly people and their families who need to use care services for a long period of time. Additionally, it means individuals can keep more of their well-earned money once the fee cap is reached.

However, the care home fees cap only covers an individual's care needs and any additional expenses like social activities, trips outside the home and salon treatments will have to come out of the care seeker's personal fund.

All-Inclusive Living at The Fleet Care Home

The Fleet Care Home in Devon is an all-inclusive luxury care home that provides our local community of Dartmouth with Residential Care, Dementia Care, Nursing Care, Respite Care and Palliative Care for up to 79 individuals. We are proud to be a care home that is able to provide all of our residents with exceptional levels of person-centred care due to our team of dedicated care professionals and outstanding facilities.

Our luxury care home provides our residents with first-class facilities which include modern en-suite bedrooms, private dining, a varied activities programme, a beauty salon, landscaped gardens and a library. By providing our residents with a wide range of facilities we can ensure that they can live their lives to the fullest and continue to do things that bring them joy.

Find Out More About Our Care Home in Devon

If you would like more information about our care home and what we have to offer then please contact us by calling 01803 835 600, emailing info@thefleetdartmouth.co.uk or by filling out our contact form. We look forward to helping you.