How Much Does a Care Home Cost?

When thinking about care for an elderly loved one, one of the most common and pressing concerns is cost. Understanding how much a care home costs, what those fees cover and how they compare to other options is essential for making an informed decision that works for your family’s needs and budget.

In this article, we’ll break down the typical costs of care homes in the UK, look at what’s included in those fees, discuss who pays for care and consider alternatives like home care that may offer better value, greater flexibility and a more personal touch.

What is a care home?

Care homes provide accommodation and personal care for people who need extra support in their daily lives. This includes help with washing, dressing, eating and mobility. Some care homes, known as nursing homes, also provide medical care from qualified nurses.

Care homes vary widely in size, quality and services offered, and so do their costs. Most residents stay in a care home on a long-term basis, though some use care homes for shorter periods, such as during recovery from illness or surgery.

Average cost of care homes in the UK

The cost of living in a care home depends on several factors, including the type of care provided, location and the facilities available. As of 2024, the average weekly costs in the UK are approximately:

£816 per week for a residential care home (no nursing)
£1,078 per week for a nursing care home (with nursing care)

(Source: Carehome.co.uk)

That equates to:

£42,432 per year for residential care
£56,056 per year for nursing care

Costs tend to be higher in the South East and London, and lower in the North of England and parts of Wales or Scotland.

What do care home fees cover?

Care home fees typically include:

Accommodation (room and utilities)
Daily meals and snacks
Assistance with personal care (washing, dressing, toileting)
Laundry services
Social activities and entertainment
24/7 support from trained staff

Nursing care homes also include:

On-site nursing care from registered nurses
Medical support for chronic or complex health conditions

However, some extras may not be included in the basic fee. These can include:

Hairdressing and personal grooming
Outings or special events
Physiotherapy or chiropody
Private GP or dental appointments
Newspapers, magazines or internet access

Always ask for a clear breakdown of what is included and what incurs an additional charge when comparing care homes.

Who pays for care home costs?

In the UK, care home funding is means-tested, which means it depends on the individual’s financial situation.

Self-funded: If your loved one has assets over £23,250 (in England), they will usually be expected to pay for their own care. This includes savings, investments and property.

Partially funded: If assets are between £14,250 and £23,250, the local authority may contribute to care costs, but your loved one will need to pay the rest.

Fully funded: If assets are below £14,250, the local authority usually covers the cost of care. However, income (like pensions) may still be used towards fees.

NHS Continuing Healthcare (CHC) may fully fund care for people with complex medical needs, regardless of their financial situation. This is not means-tested but eligibility is tightly assessed.

Do you have to sell your home to pay for care?

If your loved one moves permanently into a care home and no partner or dependent relative continues living in their home, the property may be considered part of their assets and sold to fund care.

However, this doesn’t apply in all cases. The 12-week property disregard allows time to explore options before the value of the home is taken into account. You can also request a Deferred Payment Agreement (DPA) with the local council, which lets care home fees be paid later, from the eventual sale of the house or estate.

Is home care a more affordable alternative?

For many families, home care offers a more flexible and often more affordable alternative to residential care, especially in the earlier stages of support needs. Instead of moving into a care home, your loved one receives help in their own home.

Home care costs vary depending on the level of support needed, but as a guide:

Hourly rates typically range from £20 to £30
A live-in carer can cost from around £935 per week (depending on complexity of care)

In many cases, this can be significantly more cost-effective than a care home, especially if full-time care isn’t yet required. Home care also avoids the emotional disruption of leaving a familiar home environment.

Benefits of home care

Stay in the comfort and familiarity of home
One-to-one, personalised care
Greater independence and control
Flexible support, from a few hours a week to full-time live-in care
Continuity and companionship from a consistent carer
Reduced exposure to infections compared to communal living

For individuals who value independence and families looking for a more tailored approach, home care can offer a compelling alternative.

Talk to us about your options

At Trinity Homecare, we know that planning care for a loved one can feel overwhelming, especially when finances are involved. That’s why we offer friendly, confidential advice to help you understand all your options.

We provide award-winning home care that’s tailored to each person’s needs. Whether your loved one needs a few visits a week or full-time live-in care, our carers are trained, compassionate and committed to helping people live well in their own homes.

If you’re weighing up the cost of a care home versus home care, we’re here to help you make an informed choice. For a friendly, no-obligation chat, call us on 020 4572 5608 or fill out our online form. Our experienced team will be happy to talk you through your options and help you decide what’s right for your family.