What is the average cost of a care home per week in the UK

Are You Prepared for the Costs of Residential Care?

Moving into a care home is a significant life change, and one of the biggest concerns for families is the cost. Whether you or a loved one is considering residential care, understanding the financial aspects can help you plan effectively. Care home fees in the UK vary widely, depending on factors such as location, level of care, and additional services required.

For those paying for their own care, the average cost of a residential care home is £1,266 per week, while a nursing home costs £1,528 per week. Over a year, this amounts to £65,832 for residential care and £79,456 for nursing care.

But what exactly do these fees cover, and how can families navigate the financial side of care? Let’s break down the costs and funding options to give you a clearer picture.

average cost of a care home

Understanding Care Home Costs

What Determines the Cost of a Care Home?

Several factors influence care home fees, including:

  • Location: Care homes in London and the South East tend to be the most expensive, while those in the North of England and Wales are more affordable.
  • Type of Care Needed: Residential care is generally less costly than nursing care, which includes medical support.
  • Specialist Services: Dementia care or other specialised care needs may increase the overall cost.

Average Weekly Costs in the UK

  • Residential Care: £1,266 per week
  • Nursing Care: £1,528 per week
  • Dementia Residential Care: £1,306 per week
  • Dementia Nursing Care: £1,552 per week

For those requiring specialist services, costs can exceed £2,000 per week.

Who Pays for Care Home Fees?

Your financial responsibility for care home fees depends on your assets and location within the UK. Each country has its own funding thresholds and guidelines.

England & Northern Ireland

Scotland

  • Those with assets above £35,000 pay for their own care.
  • If assets fall between £21,500 and £35,000, partial funding is available.
  • If assets are below £21,500, full local authority funding is provided.
  • Personal care is free for those assessed as needing it.

Wales

  • The threshold is £50,000. If assets are below this, the local authority funds the care.

Funding Options for Care Home Fees

Selling Your Home

Many people fund care by selling their home. However, this isn’t always necessary, as there are other financial options available.

Keeping Your Home

  1. Renting the Property – Generating rental income can help cover care fees, though tax will apply.
  2. Deferred Payment Scheme – Available in England, Scotland, and Wales, allowing local authorities to cover care fees and recover costs later.
  3. Equity Release – A financial product that allows homeowners to access funds from their property, though this comes with high interest rates.

Care Fee Annuities

A care fee annuity provides a guaranteed, tax-free income to cover care costs. This is a one-off purchase and is non-refundable, meaning any remaining funds do not pass to your estate.

Financial Support for Self-Funders

Even if you pay for your own care, you may be entitled to financial support through benefits and allowances.

Attendance Allowance (AA)

  • Available for those over 65 who require care.
  • Lower rate: £72.65 per week (daytime support required).
  • Higher rate: £108.55 per week (day and night support required).
  • Not available if local authority funding is received.

Personal Independence Payment (PIP)

  • Available for those under 65 with daily living or mobility needs.
  • Daily living component: £72.65 (standard) or £108.55 (enhanced).
  • Mobility component: £28.70 (standard) or £75.75 (enhanced).

NHS Funded Nursing Care (FNC)

For individuals in nursing homes, the NHS may cover some nursing costs:

  • England: £235.88 per week (standard) or £324.50 (higher rate).
  • Scotland: £111.90 for nursing care and £248.70 for personal care.
  • Wales: £201.74 per week.
  • Northern Ireland: £100 per week.

NHS Continuing Healthcare (CHC)

  • Fully covers care and accommodation costs.
  • Eligibility is based on health needs, not financial status.
  • Often denied for dementia patients as they are assessed as needing social care rather than healthcare.

State-Funded Care: How It Works

Care Needs Assessment

Your local authority will assess your care needs, considering physical, emotional, and social requirements.

Financial Assessment (Means Test)

A financial assessment determines your eligibility for funding. The value of your home is disregarded for the first 12 weeks of care.

If an individual is found to have deliberately reduced their assets to avoid care fees, it may be classified as deprivation of assets, which can lead to funding being denied.

Personal Budget

If funding is granted, the council will set a personal budget outlining:

  • The cost of care.
  • The amount the individual contributes.
  • The amount covered by the local authority.

Attendance Allowance or PIP stops after 28 days if local authority funding is received.

Care Home Top-Up Fees

If a chosen care home is more expensive than the local authority budget, the additional cost must be covered by a third party (family member, friend, or charity). The resident themselves cannot pay this fee.

Personal Expenses Allowance (PEA)

Residents in care homes keep a small allowance for personal items:

  • England: £30.15 per week.
  • Scotland: £34.50 per week.
  • Wales: £43.90 per week.
  • Northern Ireland: £27.19 per week.

Finding the Right Care Home

Key Considerations

When choosing a care home, consider:

  • Location – Proximity to family and friends.
  • Services – Ensure it meets both current and future care needs.
  • Costs and Fees – Clarify what is included to avoid unexpected charges.
  • Reviews and Ratings – Check independent reviews on sites like carehome.co.uk.

Need Expert Advice?

Navigating care home costs can be complex, but planning ahead ensures peace of mind. For tailored guidance, visit Home Instead New Forest to explore care options and expert support.

Stay informed and make the right choices for your loved one’s future.

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