Care Home Fees Explained – Protect Your Assets with Expert Legal Advice
Navigating the complexities of care home fees can be daunting. Understanding the financial implications and legal responsibilities is crucial for both individuals and their families.
At Crane & Staples, we specialise in providing expert legal advice on care home fees. Our experienced solicitors can guide you through the process. We will help protect your assets and uphold your rights as far as possible.
Please contact us to book an appointment to discuss care home matters. We would be pleased to meet you in our office or on a video call. We also offer home visits within the local Hertfordshire area.
What is the average cost of a care home per week in the UK?
The cost of care homes in the UK varies significantly. It depends on the type of care and location. In 2025, the average cost of a care home is:
• £1,387 per week for a residential care home
• £1,545 per week for a nursing home
You can find out about the difference between a care home and a nursing home here.
However, these figures can fluctuate based on factors such as:
• Level of care required
• Location of the care home
• Facilities and amenities offered
For information about how to ensure you or your family member are being fairly treated by a care home, please consult the CMA guidance.
Is there a cap on care home fees in the UK?
Currently, there is no cap on care home fees in the UK.
Under Boris Johnson’s administration, there were plans to introduce an £86,000 cap. However, in July 2024, the Chancellor announced that the planned adult social care charging reforms inherited from the previous government will not proceed.
For further guidance on this, please refer to the Care UK website.
How much money can you have before you have to pay for a care home?
In England and Northern Ireland, you must fully fund your care home fees if your total savings and assets exceed £23,250.00. If your savings are between £14,250 and £23,250 you will be eligible for partial support.
What is the care home fee assessment?
The Local Authority conducts a financial assessment, also known as a means test, to determine how much you must contribute towards your care home fees.
This involves checking and verifying your savings and assets. Personal possessions are generally disregarded, provided they were not purchased to avoid care charges.
For more details on the assessment process, please refer to the NHS guide.
Are the first 12 weeks in a care home free?
While the first 12 weeks in a care home are not free, there is a rule called the 12-week disregard.
This means your Local Authority must disregard your property value for the first 12 weeks of a permanent placement. The purpose of the 12-week disregard is to give you time to settle in. It also allows you to decide what to do with your property and how to fund your care.
If the property is sold within the first 12 weeks, the disregard ceases to apply from the sale date. The proceeds are then counted as capital in the assessment.
For further details, please review the Age UK factsheet.
What is the 7-year rule for care home fees?
The 7-year rule for care home fees is a myth.
This misconception comes from the 7-year rule for Inheritance Tax Considerations. Gifts made more than 7 years ago are not counted for Inheritance Tax purposes.
However, the 7-year-rule does not apply to care home fees.
There is no time limit to how far back the Local Authority will go when conducting a financial assessment for care home fees.
This means the Local Authority can look as far back as they wish. They check whether you have given away assets to drop below the care home fee threshold.
Deprivation of Assets
If the Local Authority believe that you have deliberately given away assets to avoid care home fees, they may assess you as though you still had the assets in your possession. This is referred to as Deprivation of Assets.
Can I gift my house to a relative to avoid care costs?
If you gift your property to a family member deliberately to avoid care costs, it could be viewed by the local authority as Deprivation of Assets. If the local authority finds a deprivation of assets, the property will be factored into the financial assessment as though you still owned it. The local authority have discretion to look back at a deprivation of assets for an unlimited timeframe. They can overturn the gift of any asset if it is seen to deliberately avoid care costs.
For more information on gifting property, see: Inheritance Tax: Can I gift my house to my children and still live in it?
Will care home fees wipe out my children's inheritance?
It is important that if you go into care, your needs are met at an appropriate level. However, a main concern for people going into care is that the care home fees will ‘wipe out’ their children’s inheritance.
Care home fees can reduce the amount of inheritance left to your children, especially if you are self-funding your care and have significant assets. The impact depends on the cost of care. It also depends on your savings, property, and other assets.
While fees may not completely ‘wipe out’ an inheritance, without careful planning, they can substantially reduce the estate available. To protect your family’s inheritance, you should consider the strategies listed below. Please contact our solicitors for personalised advice on minimising the impact of care home fees on your estate.
How do I protect my assets from care home fees?
Potential ways to protect your assets from care home fees include:
- Wills and Trusts: Properly drafted wills and trusts can protect your share of a property, especially for joint owners. Please contact us for a consultation to discuss trust options.
- Renting Your Property: Consider renting your property to generate income for care fees. Remember to report rental income on your tax return.
- Deferred Payment Agreement: If your capital is above £23,250, then you’re likely to have to pay your care fees in full. If you are unable to sell your home or you do not wish to sell it within your lifetime, you may be able to ask your Local Authority about a Deferred Payment Agreement.
A Deferred Payment Agreement allows the Council to contribute towards your care home fees. They reclaim the funds when your property is sold or after your death. You would need to speak to your Local Authority regarding a Deferred Payment Agreement.
Can my relative continue to live in my house if I go into care?
A person’s property is generally not considered for financial assessment if the property is still occupied as the main home of any of the following:
• spouse, partner, former partner, or civil partner, except where you are estranged;
• a lone parent who is your estranged or divorced partner;
• a relative/family member who is either:
-aged 60 or over;
-a child of yours aged under 18; or
-incapacitated.
If you are living with your adult child when you go into care and they are not aged over 60 or incapacitated, the property may be included in your assets. This means you may need to sell it to pay for care.
We recommend seeking legal advice if you are unsure about your family’s housing arrangements when moving to a care home.
What happens when the money runs out?
If you are self-funding your care and your savings and assets fall beneath the £23,250 threshold, the council may begin assisting with fees. They will need to conduct an assessment and agree you need a care home. Therefore, it is best to contact them to request this as you approach the threshold.
If you or a relative are struggling to pay care home fees, you can review the following for further guidance: Paying for permanent residential care.
Are next of kin responsible for care home fees?
A next of kin is not legally obligated to bear the responsibility of an individual’s care home fees. Some may choose to contribute towards the cost of another’s care. Although, there is no legal requirement for them to do so.
For more information about this, please refer to the UK Care Guide website.
Who is legally responsible for care home fees?
If you are self-funding your care, a contract will exist between you and the care home. This makes you legally responsible for paying your care home fees.
As noted above, family members are not legally required to contribute. However, if a family member or another person chooses to help with the fees and signs the contract, they then become legally responsible for making the payment.
Care Home Fees and Capacity
If someone loses mental capacity and can no longer manage their finances, it is important to know who is responsible for paying care home fees. In these cases, a Lasting Power of Attorney (LPA) for Property and Financial Affairs can be used to manage payments, sell property if needed, and deal with financial assessments on their behalf.
Without an LPA in place, the Court of Protection will appoint a deputy. Your deputy will manage your finances, including care home fees. Obtaining Deputyship can be a lengthy and costly process. Setting up an LPA in advance ensures a trusted person can manage your finances. They can also pay care home fees if you lose capacity.
Please contact us to discuss setting up a Lasting Power of Attorney, obtaining a Deputyship for someone who has lost capacity, and protecting your finances if you need care in the future.
Do dementia sufferers have to pay care home fees?
Dementia sufferers may have to fund their care home fees depending on their financial situation. In some circumstances, where the person with dementia has complex health and care needs, they may be eligible for NHS continuing health care. A dementia diagnosis alone is not an automatic qualification for NHS continuing health care.
For further guidance about this please consult the NHS website.
Can I refuse to pay?
You cannot simply refuse to pay care home fees if you are legally responsible for them. If you do not pay, the care home may follow formal procedures. Ultimately, this could result in a request for you to leave. It is important not to let non-payment reach this stage.
If you are struggling to pay, your Local Authority may be able to provide support or funding assistance. Family members are not legally obliged to cover fees for someone who was self-funding.
Seeking advice early and discussing options with the care home can help prevent financial difficulties and protect your care.
Can you claim care home fees back after death?
It may be possible to reclaim care homes fees after death if:
- the person receiving care was self-funding; and
- you can provide evidence that they should have been eligible for NHS Continuing HealthCare.
Whilst we do not advise on appeals, we can recommend you to a specialist in this area during your appointment.
Specialist Legal Advice for Care Home Fees
Arranging care and understanding care home fees can feel overwhelming. However, with expert legal guidance, you can make informed and confident decisions. Whether you want to plan ahead by putting Lasting Powers of Attorney in place, make a Will to protect your assets, or need advice about care home fees for yourself or a loved one, we are here to help.
At Crane & Staples, we provide tailored legal advice. We can help protect your assets and guide you through every step of the process. Please contact us to make an appointment. We can discuss your care home fee concerns and plan for the future with confidence.
