Care Search Care Advice Job Search Industry Resources Search for Care Homes in your area... Search Advice Home / All Topics Paying for Care articles Care Home Fees Advice Who Pays for What? Care home fees and costs: How much do you pay? What are top-up fees in a care home? Benefits you can claim in a care home Financial assessment for care home fees What is NHS continuing healthcare funding? Dementia and health needs eligibility NHS-funded nursing care (FNC): Eligibility and rates Do I have to sell a jointly owned property to pay for care home fees? Can I put a property into a trust to avoid care home fees? How moving into a care home affects your pension Deprivation of assets to avoid paying for care home fees Attendance Allowance in care homes Who pays for a care home when the money runs out? Who is responsible for unpaid care home fees after death? Deferred Payment Agreements to pay for care home fees Equity release to pay for care Using an Immediate needs annuity to pay for care Who Pays for What? Long-term residential care can be costly so once you have been assessed as needing this extra care and support, the next step is to find out how you are going to pay for it. Around half of care home residents fund themselves and are referred to as self-funders and the other half are state-funded and are paid for by the local authority. The amount you pay towards your care and how the state will pay depends on where you live in the UK - England, Wales, Scotland or Northern Ireland - as well as the value of your savings, investments and your property. This video provides an overview of when you may have to fund your care home fees yourself and in what circumstances your local authority will provide support. Self-funders If you are a self-funder and over the age of 65 and need care and support, you will be able to claim Attendance Allowance. This is £60 a week. If you need help during the day and night, or if you are terminally ill, you will get £89.60 a week. The amount is paid tax free and is not means tested. Attendance Allowance isn’t available in care homes in Scotland, as everyone over the age of 65 in Scotland is entitled to free personal care, if the local authority has assessed them as needing it. In England, Wales and Northern Ireland, self-funders may also be able to get help with their nursing care costs, through Funded Nursing Care (FNC) or Continuing Healthcare Funding (CHC). FNC is a flat rate contribution paid directly by the NHS to the care home towards the cost of the nursing care. CHC is not means tested and pays for the cost of a person’s care, funding a person’s health and social care (personal care) needs as well as their care home accommodation. Self-funders pay for their care a number of ways. These include selling their home or renting it out. People who sell their home can then pay their care home fees by investing the money, putting the money into a high-interest account or buying a care fee annuity. State-funded If you are eligible for state funding, benefits such as a state pension or a private pension will be used to help pay for the cost of care. However, you will still need an income each week. This is called the Personal Expenses Allowance and is a set amount that a person should be left with. This varies according to which part of the UK you live in. If you would like a more expensive care home than that chosen by the local authority, it may still agree to pay for it, providing a third party, such as a family member, friend or charity pays the extra. You, as the resident, cannot pay this extra amount, which is often referred to as a top-up fee. To find out if your local authority will contribute towards your care home fees, contact them to arrange a free Needs Assessment. The assessment identifies your care needs, what care you require and how much support you need. To determine whether your local authority should pay for some or all or your care costs, they will follow up with a Financial Assessment, also known as a means test, which looks at your capital and income. Your local authority will pay for some or all of your care home fees if you have capital below a certain limit. In England, the upper capital limit is £23,250 and if you have below this amount, your local authority should fund some of your care. The capital limits vary across the UK. Further reading Paying for residential care is expensive and it is easy to get confused when trying to understand out how everything works and what support you are entitled to. Below are answers to some frequently asked questions about care home fees that you may find useful. Who pays for care home fees when the money runs out? Who is responsible for unpaid care home fees after death? Do I have to sell a jointly owned property to pay for care home fees? Article By: Sue Learner Last Updated: 24 Aug 2021 Frequently Asked Questions Who pays for care home fees? You either have to pay for all of the care home costs yourself or your local authority pays for all or some of the costs. Around half of care home residents fund themselves, also known as self-funders. The other half are state-funded and receive support from the local authority. Learn More What help can self-funders get with care costs? Self-funders and people over 65 can claim up to £89.60 a week in Attendance Allowance. In Scotland, people over 65 can get personal care for free. Other financial support includes Funded Nursing Care (FNC) or Continuing Health Healthcare Funding (CHC). Learn More How much does the council pay towards care home fees? If you are eligible for state funding, your local authority will pay for all or some of the costs, based on a needs assessment and a means test. If the council pays for some of the costs, the amount depends on the value of your savings, investments and your property, which is looked at during the means test. Learn More How do self-funders pay for their care home fees? Self-funders pay for their care a number of ways, including selling their home or renting it out. Those who sell their home can fund their care by investing the money, putting the money into a high-interest account or buying a care fee annuity. Learn More Do I have to pay for nursing care? Self-funders in England, Wales and Northern Ireland may receive help with nursing care fees. Funded Nursing Care (FNC) is a flat contribution paid directly by the NHS to the care home. If you are eligible for Continuing Healthcare Funding (CHC), the NHS will cover your health and social care costs and care home accommodation. 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