Funding Options: What You Need to Know

Paying for a care home can feel a little daunting but once you understand the different options, it’s easier to navigate.

Here’s a quick guide to help you figure out how to pay for care and the funding options available.

1. Self-Funding (Private Payment)

If you have enough savings, assets, or income, you might need to pay for care privately. That means you or your family will cover the costs directly. Here’s how it works:

Check the Costs: Care home fees can vary depending on where you are, how much care you need and the type of home. On average, in the UK, it can cost anywhere from £500 to £1,900 a week, or more.

Savings & Assets: How much you’ll need to pay depends on your savings and assets. In the UK, if your assets are over £23,250 (as of 2025), you’ll probably need to self-fund. If your savings and property are below that, you might be eligible for some state support.

Income Matters: If you get a pension or have other regular income, this will be factored in when figuring out how much you’ll need to pay.

2. Government Support (State Support)

If your savings or income are limited, you could be eligible for financial help from your local council. They’ll do a means test to assess your finances and decide how much support you can get.

Means Testing: Local authorities will look at your savings, income, and assets to determine how much you should contribute to your care. You could qualify for full or partial state funding, but you might still need to contribute based on your income (check out the section below about Top-Up Fees).

NHS Continuing Healthcare: If you have serious health issues, the NHS might cover the full cost of your care under NHS Continuing Healthcare (CHC). This isn’t means-tested but it’s only available if you need complex, ongoing health care.

Deferred Payment Scheme: If you own a home but can’t afford care fees upfront, your council may offer a deferred payment scheme. This lets you move into a care home and delay payment until your home is sold or after your death.

3. Long-Term Care Insurance

Some people take out long-term care insurance to help cover care costs. If you’ve got a policy, it may cover some or all of your care home fees, depending on your policy’s terms. These policies usually kick in when you need full-time care.

4. Care Home Funding Options

Here are some extra options to consider:

Top-Up Fees: If you’re eligible for state funding but want to move into a more expensive care home than the one your council offers, you may need to pay a “top-up fee” to cover the difference.

Equity Release: If you own a home, you might decide to release some of its equity to pay for care. This means you’ll take out a loan against your property, which you’ll repay when the home is sold.

Family Contributions: Sometimes, family members pitch in to help cover the costs of care, especially when someone doesn’t qualify for full state support.

5. Funded Nursing Care (FNC)

If you need nursing care in a care home, you may qualify for Funded Nursing Care (FNC). This is financial support from the UK government to help with the cost of nursing care. It’s available to those who need regular, skilled nursing care (not just personal care), and is paid directly to the care home.

FNC won’t cover all your care costs – it only helps with nursing services, and you’ll still need to cover the rest of the fees yourself. Eligibility is based on an assessment of your care needs. The amount is reviewed every year.

For more details, visit the NHS page on NHS-funded nursing care.