Care home fees: what you pay for and why they vary

A care home’s weekly fee depends on the kind of care (nursing costs more than residential), the person’s needs, the room, the area, and who is paying. People who pay for themselves often pay more than the council pays for the same room. Get every home’s fee, what it includes and how it can rise in writing before you choose.

What drives the weekly fee

• Type of care. Nursing homes employ registered nurses around the clock, so they usually charge more than residential homes. Our guide to nursing and residential care explains the difference.
• The person’s needs. A home can quote more for someone who needs two staff to help them move, or a lot of care at night. The CMA says the final fee should be confirmed after the care needs assessment, and you should have time to consider it.
• The room. Size, an en-suite bathroom, a garden view or a ground-floor position can all change the price within the same home.
• The area. Fees vary between parts of the country, so compare homes near each other.
• Who pays. Councils negotiate their own rates. Self-funders are charged the home’s own rate, which is often higher.

The self-funder premium

The Competition and Markets Authority (CMA) studied the UK care home market and reported in November 2017. It found that self-funders’ fees were on average 41% higher than those paid by councils in the same homes, a difference of £236 a week, or over £12,000 a year.

Read that figure for what it is. It is an unweighted average from the CMA’s sample of homes run by large providers, using fees from before the report, and the CMA said the gap was slightly lower, though still significant, for smaller providers. We have not found a more recent official measure of the gap.

The Office for National Statistics estimated that 37.0% of care home residents in England (about 137,480 people) were self-funders between March 2022 and February 2023. That is the latest edition it has published.

What a fee usually includes, and what costs extra

A weekly fee normally covers the room, meals and drinks, heating and lighting, laundry, cleaning and personal care. Common extras include hairdressing, chiropody, newspapers, a personal phone line, toiletries, outings, and a member of staff to go with the resident to hospital appointments.

Homes differ, so ask each one for a written list of what the fee covers and the price of every extra. The CMA says homes should tell you what you will pay when you first get in touch, show key information clearly on their website, and give you their standard contract terms before you agree to anything.

How public payments reduce the fee

England: if a resident of a nursing home is assessed as needing care from a registered nurse, the NHS pays £267.68 a week (2026-27, from 1 April 2026) straight to the home. Ask the home to show it on the fee breakdown, so you can see what you are paying for and what the NHS is.

Scotland: the council pays £260.30 a week towards personal care, plus £117.10 for nursing care where needed (from 1 April 2026), to the home for anyone assessed as needing it, including people who pay the rest themselves. The bill you get should be the fee minus those payments.

How fee increases should work

The CMA’s guidance on consumer law says the contract should explain clearly when fees can change, for example at an annual review or after a big change in care needs, and how the change will be worked out. A term giving the home an unlimited right to raise fees is likely to be unfair.

You should usually get at least 28 days’ notice of a change, and if you object you should be able to leave without penalty before it takes effect. Ask each home how much its fees rose in each of the last few years and when its next review is due.

Deposits, upfront payments and fees after death

The CMA lists upfront payments as potentially unfair unless they are a fair deposit or an advance payment of the regular fees, and says the home should tell you about any upfront payment. It also says charging fees for an extended period after a resident dies may be unfair. Get both terms in writing.

When the council is paying

In England, the council sets a personal budget for the care home place. The statutory guidance says it must have regard to the actual cost of good quality care when setting it, and must make sure at least one suitable home is available within that budget. If you choose a dearer home, someone pays the difference as a top-up.

If you pay for yourself now but your savings could fall to the council’s upper limit (£23,250 in England for 2026-27, £36,750 in Scotland from 6 April 2026), ask the home before moving in whether it would accept the council’s rate, or would expect a top-up. Our guide to paying for a care home explains the means test and top-ups.

Why we do not publish an average fee

We only print figures from a named, dated source, and we have not found a current, official average self-funder fee for each area. Many councils publish the weekly rates they pay care homes, which is a useful local benchmark. For any particular home, the only reliable figure is the one it gives you in writing.

How to choose a care home, and what to get in writing →