Paying for a care home

Find out how care home costs are worked out, how much you may need to pay, and how financial assessments and council support affect what you pay.

How care home costs are calculated

Care homes are placed into cost bands, from band 2 (lower cost) to band 5 (higher cost).

How much you may need to pay depends on your income, savings and other assets. Your home may also be included in the financial assessment, depending on your situation.

Find out more about care home costs in our factsheets:

Paying for residential care - how care fees and assessments work
Living in a care home - how we work out what you will pay - how care home costs are calculated
Living in a care home - third party payments (top-ups) - top-ups when a home costs more than the council pays

Council support for people with lower income or assets

If your income and assets, including property, are below £23,250, you may qualify for council support.

The council will carry out:

a care and support needs assessment to understand what care you need
a financial assessment to look at your income, savings and any benefits you may be entitled to

If you are eligible, the council will help pay towards your care costs, up to a standard amount for your type of care.

Find out more about what a care and support assessment is and how it works

How your home affects what you pay

The value of your home may affect how much you need to pay for care, depending on your situation.

Temporary care or someone still lives at your home

The value of your home is not included if:

your care is temporary, or
someone still lives there who is:
- your partner
- a relative aged 60 or over, or someone claiming disability benefits
- a child under 16 who you or a former partner supports

Permanent care

If your care is permanent and your other savings and assets (not including your home) are less than £23,250, the following rules apply:

The council pays for the first 12 weeks of permanent care, if care is needed.
During these 12 weeks, you pay from your income and savings, but your home is not included.
After 12 weeks, if your home is included in the assessment, you will need to pay the full cost of your care.

Self-funders: paying the full care home cost

Some people pay the full cost of their care home themselves. These people are known as self‑funders.

You are classed as a self-funder if:

your care needs have been assessed, but you are not eligible for council support
you are eligible for care, but your savings or assets are above £23,250
you have chosen not to have a financial assessment by the council

Practical advice for self-funders on assessments, choosing a suitable home, costs and help with paying for care can be found in the A self-funder's guide to care and support factsheet.

Universal Deferred Payments Scheme

Self‑funders may be able to use the value of their home to help pay for care home fees. Read more about this in the Universal Deferred Payments Scheme factsheet

This video explains what deferred payments are and how they work: Paying for Care: Self-funding and deferred payments (Looking Local) [YouTube, 2 minutes]