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How much do care homes cost in the UK?
We understand that there's lots to consider when choosing a care home and looking at their costs. In this article we’ll guide you on the costs of care homes, the funding available and how everything works to help make the decision-making process a little bit easier for you or your loved one.
Understanding the types of care and their costs
The cost of living in a care home depends on a number of factors. From the level of care required, to the home itself, the facilities, the food and the daily activities that it offers.
Care Home Cost by Type of Care
Residential Care Home Costs
Residential care is the standard placement, and usually means that you do not need round-the-clock nursing care.
The cost of residential care homes can vary based on a number of factors, including your location and the purpose-built facilities within the home. Any nursing services that may be required by you can be supplied by the district nursing team, funded by the NHS.
Nursing Care Costs
If you require nursing care, this usually means that you require an element of medical care and therefore will need to be supported by round-the-clock nursing care. This means that an uplift in the Weekly Fee will be payable, but this will depend entirely on the nature of the enhanced care required.
Dementia Care Home Costs
Those living with dementia typically require a higher level of care than those who are living in a residential care home, resulting in a higher cost for those living in dementia homes.
At Barchester, our ‘Memory Lane’ programme utilises a careful blend of skills and techniques developed by leading experts in the field of dementia care, incorporating person-centred design in its use of colour and cues to help individuals navigate through the home.
Care is focused on independence, dignity and choice, with a person-centred approach. Staffing levels reflect the needs of residents, and people living with dementia are offered a range of activities to help preserve life skills, support interactions and retain a sense of purpose and selfhood.
When you visit a Barchester care home, you will be given an average Weekly Fee rate in order for you to understand broadly what the costs of living in the care home might be, enabling you to compare the rates with other care homes. You’ll be given a definitive cost once you’ve completed a pre-admission assessment which will determine the level of care and support that you require.
Care Home vs Home Care Costs
Depending on the level of care required, there are differences in cost between care homes and receiving care at home.
Short term costs vs long term fees
Long term care is usually more expensive overall due to continuous needs. However, short-term care can have a higher weekly fee or daily rate because it can be more difficult to manage operationally. To make a respite booking, a care home would need to maintain a vacant room and may need to hire extra staff for last minute admissions, cover admin and set up costs for a brief stay. According to carehome.co.uk, respite care can have a cost uplift of 10-15% compared to a permanent stay.
Care Home Costs
Care home costs cover everything from the physical accommodation, food and bills, to the emotional and psychological support which naturally comes with living in a care home.
Home Care Costs
Although the cost of home care might be cheaper in some instances, it’s worth remembering the additional support that comes with living in a care home. For example, those living in a care home will find themselves surrounded by other residents, as well as staff. This contributes to residents living a fulfilled and sociable life, and can mitigate any potential feelings of loneliness. There is also an element of safety to living in a care home, knowing that there will be someone on hand to help 24 hours a day.
What’s included in care home fees?
At Barchester, we charge a Weekly Fee, which covers the cost of care. The Weekly Fee covers everything from the cost of caring staff to care needs, accommodation and facilities. At a glance, here are examples of what is included in this Weekly Fee and what is an additional cost:
The cost of care homes at Barchester also covers general costs such as Wi-Fi, the annual testing of personal electrical equipment and any ongoing care reviews which will take place to ensure that you are continually receiving the level of care required. Have questions? Refer to our facilities FAQs, answering a wide range of queries.
Our 'Paying to live in a care home' guide is designed to try and help you understand more about the funding options available and what to consider when choosing a care home.
Read our Paying to live in a care home brochure
Are there hidden costs in care home fees?
Yes, hidden costs can be present in home care fees. Some care homes may not fully disclose costs when people first enter a care home or over the time of their stay. Hidden fees are not always made clear when people sign the initial contract, so it's important to carefully review contracts and ask for a full itemised breakdown of all potential charges so you can avoid unexpected expenses later down the line.
Common additional costs:
- Travel costs
- Bank holiday premiums
- Cancellation fees
- Hairdressing
- Outings
- Mobility aids
Barchester’s commitment to make costs clear and simple:
We make a conscious effort to ensure that we don’t have any hidden fees at our Barchester homes.
The Weekly Fee includes everything required to live a fulfilled and comfortable life within one of our care homes, but there are additional services and requirements which the Weekly Fee might not necessarily cover.
For example, the cost of staff accompanying you to medical appointments or similar, plus the cost of the transportation isn’t covered in the Weekly Fee, although this can be arranged and charged separately at a reasonable rate on request.
Where one-to-one care exceeds the needs that our staff can facilitate, an external provider will be brought in to provide this care, and would also be charged separately.
Additional items such as newspapers, toiletries, hairdressing appointments and special outings, for example, can be organised by our staff, but payment for them will sit outside the Weekly Fee.
How do I pay for a place in a care home?
Here are your options for arranging and paying for a care home:
Local Authority Funding aka state funding
How much you’ll have to pay depends on your finances and assets. If you’re able to pay all the costs yourself, you’re referred to as a self-funder.
However, you could be entitled to financial support from your local authority and help with care home costs, although this depends on your location, your savings and your assets. You will undergo a care needs assessment and a means test to identify if you’re eligible for financial help.
If your local authority is helping towards your costs, the care is classed as state-funded. It’s worth noting that the cost of living in a well-appointed Barchester home might be greater than what your local authority is willing to cover.
A third-party top-up fee would then need to be paid in order for you to be placed in the care home of your choice, which would make up the difference between the care home you’d prefer, and what your local authority will pay. This could be paid for by a family member or friend.
Care home fees are calculated weekly, but are charged monthly at Barchester. You can find the average weekly cost of care at a Barchester care home here.
This isn’t always the case with home care, as visits are often sporadic throughout the day or week, and can be short. Where you may require additional care as your needs change, the cost of home care can often exceed the cost of a care home.
Self funded care
Self funded care is when someone pays the full cost of their own care and support services. Usually, this applies to those with over £23,250 in savings and assets, and don’t receive financial help from their local council. As a self-funder, you can arrange your own care privately or ask the local council to arrange it for you at an extra cost. Your weekly income may be taken into consideration.
NHS Continuing Healthcare (CHC)
CHC is a fully funded package of care for individuals with ongoing high care needs which is arranged and paid for by the NHS, free of charge. All care costs will be covered, including care home fees, accommodation, personal care, and healthcare services. This applies to both living in a care home or your own home. You’ll need to go through an assessment which will determine if you’re eligible for it.
NHS Funded nursing care (FNC)
FNC is a flat-rate contribution from the NHS to help pay for nursing care fees. It is for those who live in a nursing home who have been assessed as requiring care from a registered nurse, and do not qualify for NHS continuing healthcare. The funding is paid directly to the care home and is not means-tested, so your income and savings do not affect eligibility.
A deferred payment scheme
A deferred payment scheme is a long-term loan that people can use to cover care home fees. Instead of selling their home, a local council will loan them the money to cover the fees. Usually, you’ll need to own your home and have less than a certain amount in savings.
Care home costs UK
There are different rules depending on where you live in the UK, and the local authority funding available is determined by how much income and capital you have (such as savings or property ownership).
How care home costs vary across the UK:
The cost of care does vary by location, and even from care home to care home. As mentioned, it depends on a number of factors, including the quality of life the home offers, and its purpose-built facilities. Home care costs differ from care home costs too, so it’s always worth checking the differences between the two to see which is more appropriate for you.
The amount you’ll have to contribute does also vary depending on where you live in the UK. You may be eligible for funding or some financial help depending on your assets and savings, though this depends on where you live.
For example, in England, you’ll be eligible for council funding if your savings and assets are below a certain threshold – this is £23,350 in England and Northern Ireland (until the changes are implemented in October 2025), but is higher in other parts of the UK.
In Scotland, from 10 April 2023, the capital limits are £20,250 for the lower limit and £32,750 for the upper limit. If you’re assessed as having capital above the upper capital limit, you won’t get help from your local council to pay care home fees over and above any assessed entitlement to free personal and nursing care.
In Wales, the capital limits are currently £24,000 for home care, or £50,000 for care in a care home.
Comparing the Cost of Care
It’s always sensible to compare the costs of care against your wants and needs. Care home costs include your overall care, and the accommodation you’re living in, whereas home care costs only cover the cost of your care. You will have to take into account the fact that you will still be required to pay for your bills and the cost of food if you choose home care.
Are next of kin responsible for care home fees?
No, next of kin are not legally responsible for your family members' fees. Unless you have joint assets, contracts or agreed to pay a top-up fee, then you are not financially involved in their care. However, family members can volunteer to pay a ‘top up fee’.
What is a top-up fee for a care home?
It’s an additional payment to cover the difference between a resident's personal budget and the higher cost of the home they would like to go for. Residents can ask a third party, such as a relative or friend, to pay a top-up fee. If the third party volunteers for this, they must sign a written agreement with the local council and the care home.
Financial advice and support services
Here’s a list of resources to guide you on your care journey: