The rising cost of long-term care remains one of the most pressing financial issues for families in the UK. In 2025, the rules around care home payments continue to shape how much individuals must contribute towards their accommodation and care needs. Understanding how costs are assessed, the thresholds in place, and the financial aid available can make a significant difference to planning ahead and protecting family finances.
How Care Home Costs Are Assessed
Find YOUR ideal care home NOW!
In the UK, care home funding is means-tested. This means that the amount you pay depends on your income, savings, and property value. Local authorities carry out a financial assessment (sometimes called a means test) to determine how much support you may receive.
- If your assets exceed the upper threshold, you are expected to self-fund.
- If your assets are below the lower threshold, the local authority contributes more towards your costs.
- Between these thresholds, you contribute part of your income and savings, with the local authority covering the rest.
Care Home Payment Thresholds in 2025
| Nation | Upper Capital Limit | Lower Capital Limit | Notes |
|---|---|---|---|
| England | £23,250 | £14,250 | Above the upper limit = full self-funding |
| Scotland | No fixed limit (different model) | Varies | Personal and nursing care contributions are provided |
| Wales | £50,000 | £24,000 (home care) | Higher thresholds than England |
| Northern Ireland | £23,250 | £14,250 | Same limits as England |
Typical Costs of Care Homes in 2025
On average, care home fees in the UK are:
Residential care: £800–£1,200 per week.
Nursing care: £1,200–£1,500 per week.
These figures vary depending on region, level of care required, and the type of accommodation.
Financial Aid and Support Available
Elderly people may be entitled to additional help with costs through:
Local authority funding – for those with limited assets.
NHS Continuing Healthcare – full funding for individuals with complex medical needs.
Attendance Allowance – for those needing personal care at home or in a facility.
Pension Credit – additional income support for those with low pensions.
Planning Ahead
The complexity of care funding rules makes planning essential. Families are encouraged to review options early, understand eligibility for benefits, and seek professional guidance to avoid unexpected financial burdens.
Official guidance can be found on the government’s website: Paying for your care – GOV.UK.
FAQ – Care Home Payments in 2025
How much can I keep before paying care home fees in England?
If you have more than £23,250 in savings or assets, you will generally need to pay your own care costs.
Are care home rules the same across the UK?
No. Each nation (England, Scotland, Wales, Northern Ireland) has its own funding thresholds and support systems.
Can I keep my home if I move into care?
Your property may be included in the means test unless your spouse or certain dependants still live there.
What financial aid can help with care costs?
Options include Attendance Allowance, Pension Credit, and in some cases NHS Continuing Healthcare.
When should I start planning for care home funding?
Ideally as early as possible, especially if you have property or savings, to ensure you understand the financial implications.
Need help finding a care home?
Senior Home Plus offers free personalized guidance to help you find a care facility that suits your health needs, budget, and preferred location in the UK.
Call us at 0203 608 0055 to get expert assistance today.
Share this article :
Latest posts
You are looking for an establishment for your loved one ?
Get availability & prices
Fill in this form and receive
all the essential information
We would like to inform you of the existence of the opposition list for telephone canvassing.
