Paying for Care: A Guide
Unlike healthcare delivered in the NHS, residential and nursing care for older people is not free for everyone.
Paying for long-term residential and nursing care can feel overwhelming, and understandably so. Unlike NHS healthcare, care home services are not free for most people. How much you may need to contribute depends on your personal circumstances including your assets, income, and care needs. As a not-for-profit charity dedicated exclusively to caring for older people, OSJCT aims to provide clear, compassionate guidance every step of the way. If maintaining financial independence is important to you, consider speaking with a specialist care fees financial adviser.
How much does care cost?
Care home fees vary regionally; costs tend to be higher in the South and for nursing care compared to general residential care. Key pricing factors include:
- Geographic location
- Local staff salaries
- The national living wage for employees aged 25+
For an independent, up-to-date view of average regional fees, visit payingforcare.org.
Understanding funding options
You can generally meet care costs through a combination of funding sources:
NHS-funded nursing care (FNC)
If nursing care is required, the NHS may contribute via Funded Nursing Care or the Registered Nursing Care Contribution (RNCC) - a weekly payment made to care homes that can provide nursing services.
Local authority funding
If NHS funding does not apply, your local council will assess both your care needs and financial situation (means-tested). Councils may disregard the value of your home in the assessment if:
- Your spouse or civil partner remains at home
- A relative aged 60+, a disabled relative, or a child under 18 continues to live there
- You’re within the first 12 weeks of permanent care need
They may offer:
- Deferred Payments Agreements (loans against your property), or
- 12-Week Property Disregard, giving you time before the property value is assessed
Your council will outline these options during your financial assessment, and you can seek advice if you’re unsure.
Capital assets: common questions
Your total wealth including property, savings, and investments affects what you’re expected to pay. It’s vital to understand how these assets are counted or potentially disregarded. If unsure, seek advice from a reliable adviser, such as a member of SOLLA (Society of Later Life Advisers).
Getting good financial advice
Navigating care funding is intricate. Specialist care fees financial advisers can help clarify your situation, options, and rights. OSJCT is a SOLLA affiliate (though independent of their operations and receives no commission). You can find qualified advisers through SOLLA’s website or by calling 0333 2020 454.
Organising a lasting power of attorney (LPA)
An LPA allows someone you trust to make decisions on your behalf if you lose the capacity to do so. There are two types:
- Property and Financial Affairs LPA, and
- Health and Welfare LPA
If an Enduring Power of Attorney (EPA) exists, it may still work but it must be registered with the Court of Protection upon loss of capacity. Setting up an LPA now can avoid delays and reduce costs later.
Understanding your resident contract
Your contract with OSJCT outlines terms including:
- Fee expectations
- Responsibilities of both you and the provider
- What happens if you can no longer afford private rates
Familiarising yourself with these terms upfront helps avoid confusion or unexpected issues later.
Other helpful resources
When arranging or paying for care, you don’t have to face it alone. Below are trusted organisations listed in our guide that can provide specialist information, support, or financial advice.
A not-for-profit website offering free, impartial information on all aspects of care funding.
SOLLA helps you find independent financial advisers with expertise in funding long-term care, pensions, and retirement planning.
A public information and advisory service specialising in care fee issues for older people. They provide free advice on care home funding, benefits, and rights.
The independent regulator of health and adult social care in England. Their website offers inspection reports on care homes and services to help you make informed decisions.
A national organisation of lawyers specialising in older client law, including wills, powers of attorney, and long-term care planning.
A national charity providing free information, advice, and local services for older people and their families.
Speak to us
For more detail on how local authority funding works, download our full Paying for Care guide.
If you’d like to speak directly to someone who understands care costs and options, our friendly OSJCT team is here to help. Call us on 0800 988 8133 or make an enquiry.