Finding out that a care home is closing is one of the most distressing situations a resident or family can face. The immediate questions are always the same: How much notice will we get? Who is responsible for finding a new home? Will we get our money back? Does our loved one have to move even if it puts them at risk? The good news is that UK law gives care home residents significant protections when a closure is announced. The bad news is that many families do not know what they are entitled to and care homes do not always follow the correct process. This guide explains every right residents have, what the care home and the local authority are legally obliged to do, and exactly what steps to take from the moment a closure is announced.
Why do care homes close?
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Care home closures happen for several reasons, some planned and some sudden:
- Financial difficulties or insolvency: the provider can no longer sustain the business
- Regulatory action by the CQC: a home rated Inadequate may be closed by the Care Quality Commission following serious safety failures
- Staff shortages: inability to maintain safe staffing levels
- Change of ownership: a new owner decides not to continue operating the home
- Voluntary closure: the provider chooses to close a site, often for commercial reasons
The reason matters, because it affects how quickly the closure happens and who is responsible for managing it. A planned voluntary closure gives more time. A CQC-enforced emergency closure can happen within days.
Your legal rights when a care home closes: summary table
| Your right | What it means in practice | Legal basis |
|---|---|---|
| Minimum 28 days' written notice | The care home must give you at least 4 weeks' written notice before the closure date. Notice given only to the local authority — and not to the resident — is not legally valid. | Protection from Eviction Act 1977, s.5 |
| Right to a free care reassessment | The local authority must reassess your care needs and find a suitable alternative placement. This applies whether you are council-funded or self-funding. | Care Act 2014, s.18–20 |
| Right to be consulted on relocation | You must be involved in decisions about where you move. Your medical needs, emotional wellbeing, proximity to family, and cultural or religious preferences must all be considered. | Health and Social Care Act 2008, Regulation 9 (person-centred care) |
| Right to a suitable replacement placement | The council must find accommodation that meets your assessed care needs — not just the nearest available bed. They must consider your wishes and those of your family. | Care Act 2014 |
| Relocation costs must not fall on you | If the closure is not your fault, you should not be expected to pay removal or relocation costs. The care home or local authority should cover these. | CMA guidance on care home contracts 2018 |
| Right to a deposit refund | Any fees paid in advance must be refunded within 28 days. Non-refundable administration fees charged before admission are specifically criticised by the CMA and are often unenforceable under the Consumer Rights Act 2015. | Consumer Rights Act 2015; CMA guidance |
| Right not to be removed without a court order | Even after the notice period expires, a care home cannot physically remove a resident without a court order. If you refuse to leave, the home must go through the courts. | Protection from Eviction Act 1977 |
| NHS CHC residents: NHS must arrange alternative | If your care is fully funded by NHS Continuing Healthcare, the NHS — not just the council — is responsible for finding and arranging your new placement. | NHS Continuing Healthcare Framework |
What the local authority is legally obliged to do
Many families do not realise that the local authority has statutory obligations when a care home closes, regardless of whether you are council-funded or self-funding.
Under the Care Act 2014, if a care home is closing, the local authority must:
- Review your existing care plan and reassess whether your current needs can still be met
- Identify suitable alternative placements that meet your assessed needs not just what is available
- Consult you and your family throughout the process, not just inform you of a decision
- Consider your emotional and social needs alongside physical care needs proximity to family, existing friendships with other residents, cultural and religious needs
- Not rush the move moves should never happen faster than is necessary for safety
- Step in immediately if the closure is sudden or emergency the council has an urgent duty under the Care Act to meet needs where there is no other provider
Self-funders have the same rights as council-funded residents. Many families believe that because they are paying privately, the council has no obligation to help. This is incorrect. Under the Care Act 2014, the local authority must provide a care needs assessment and support with finding alternative accommodation for any resident in a closing care home, regardless of how their care is funded.
What happens to your deposit and advance payments?
This is one of the most common sources of dispute when a care home closes. Here is what the law says:
Fees paid in advance
Any fees paid in advance that cover a period after the closure date must be refunded. The refund should be paid within 28 days. If the care home is insolvent, the refund claim becomes a creditor claim against the estate, which may mean partial recovery only. Families in this situation should contact the insolvency practitioner appointed to manage the closure immediately.
Administration or reservation fees
Non-refundable administration fees charged before a resident moves in are specifically flagged by the Competition and Markets Authority (CMA) as potentially unfair and often unenforceable under the Consumer Rights Act 2015. If you paid such a fee and the home is closing, challenge it in writing; you have a reasonable chance of recovery.
Deposits
True deposits, held against damage or unpaid fees, must be returned at the end of the residency minus any legitimate deductions. The care home must provide a written breakdown of any deductions. If you dispute a deduction, raise a formal complaint with the care home and, if unresolved, with the Local Government and Social Care Ombudsman.
Step-by-step: what to do the moment you hear a care home is closing
- Get everything in writing immediately. Ask the care home manager for a formal written notice stating the closure date, the reason for closure, and what support the home is providing to residents. Verbal assurances are not enough.
- Contact the local authority adult social care team the same day. Do not wait for them to contact you. Request an urgent care needs assessment and ask specifically what the council is doing to support residents of that home. Keep a note of who you spoke to and when.
- Request a copy of your loved one's current care plan. The care home is obliged to provide this. You will need it when assessing alternative homes to ensure the new placement can meet all care needs.
- Document all preferences in writing. Write to the council stating your preferences, geographic area, type of home, any specific medical requirements, language or cultural needs. A written record makes it harder for the council to ignore your wishes.
- Visit alternative homes before committing. Do not accept the first available bed unless there is a genuine emergency. You have the right to visit and assess alternatives. Ask specifically about staffing levels, activities, CQC rating, and whether they have experience with your loved one's specific condition.
- Claim any refunds in writing. Send a formal letter to the care home manager requesting refund of all advance payments and any deposit, with a 28-day deadline. Keep a copy of the letter.
- If the home is insolvent, act fast. Contact the insolvency practitioner appointed immediately and register your refund claim as a creditor. The sooner you register, the better your position.
What to do if the process is handled badly
Unfortunately, care homes do not always follow the correct legal process when closing. Common failures include:
- Giving insufficient notice (less than 28 days)
- Giving notice only to the local authority and not to the resident directly
- Rushing relocations without proper consultation
- Refusing to refund advance payments
- Placing residents in homes that do not meet their assessed needs
If any of these occur, you have formal escalation routes:
| Problem | Who to contact | How |
|---|---|---|
| Insufficient notice / rushed relocation | Care Quality Commission (CQC) | cqc.org.uk/give-feedback-on-care |
| Local authority not fulfilling its Care Act duties | Local Government and Social Care Ombudsman | lgo.org.uk or 0300 061 0614 |
| Deposit or advance payment not refunded | Citizens Advice / solicitor specialising in consumer law | citizensadvice.org.uk or 0800 144 8848 |
| Home insolvent, refund at risk | Insolvency practitioner appointed to the home | Register as creditor immediately |
| Unfair contract terms, large non-refundable fees | Solicitor specialising in care home contracts | Law Society finder: solicitors.lawsociety.org.uk |
Relocation stress: the health risk families must understand
Research consistently shows that forced relocation carries health risks for elderly people, particularly those with dementia. This is sometimes called relocation stress syndrome and can manifest as increased confusion, deteriorating physical health, withdrawal, and in some cases accelerated decline.
UK courts have addressed this directly. In one case, a challenge to a local authority's decision to close a care home was made on the grounds that there was an increased risk of mortality for residents who had to move. While the court did not prevent the closure, it did confirm that local authorities must consider the individual health risks of relocation for each resident, not just the general population of the home.
What this means for families:
- Request an individual health risk assessment for your loved one specifically, not just a general process
- Ask the receiving home to arrange pre-move visits where possible, familiar faces and gradual introduction reduce relocation stress significantly
- Maintain as much of the existing routine as possible in the new home during the transition period
- Ensure the new home has the resident's full medical history and care plan from day one
Need to find a new care home urgently?
If your loved one's care home is closing, Senior Home Plus provides free, impartial guidance to help you find a suitable alternative — quickly. Our advisors understand the urgency of care home closures and can help you identify available placements that match your loved one's specific needs, location preferences, and budget.
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FAQ: Care home closures and residents' rights UK
How much notice must a care home give before closing?
At minimum, 28 days' written notice under the Protection from Eviction Act 1977. This notice must be given directly to the resident — giving notice only to the local authority or to family members is not legally sufficient. If less than 28 days' notice is given, this is a breach of the resident's legal rights and should be reported to the CQC immediately.
Can a care home close without warning?
In practice, yes, if the CQC takes emergency action to close a home due to serious safety failures, the closure can happen very quickly. In these cases, the local authority has an emergency duty under the Care Act 2014 to step in and arrange alternative placements immediately, regardless of how the resident's care is funded.
Who pays for relocation when a care home closes?
Relocation costs should not fall on residents or families if the closure is not their fault. In practice, the care home provider or the local authority (for council-funded residents) should cover removal and relocation expenses. If you are asked to pay and the closure was not your doing, challenge this in writing and seek advice from Citizens Advice.
Can I get my deposit back if a care home closes?
Yes. Any fees paid in advance for a period after the closure date must be refunded within 28 days. If the home is insolvent, you need to register as a creditor with the insolvency practitioner to recover your money, the earlier you do this, the better your chance of full recovery.
Does the local authority have to find me a new care home?
Yes, for both council-funded and self-funding residents. Under the Care Act 2014, the local authority must conduct a care needs reassessment and help identify suitable alternative placements. They are not, however, obliged to find you the exact home you choose — they must find one that meets your assessed needs.
What if the new care home offered doesn't meet my loved one's needs?
You have the right to refuse a placement that does not meet assessed care needs and to request alternatives. Put your objection in writing to the council, specifying exactly which needs are not met by the proposed placement. If the council does not respond adequately, escalate to the Local Government and Social Care Ombudsman.
Can a care home remove a resident by force after the notice period?
No. Under the Protection from Eviction Act 1977, a care home cannot physically remove a resident without a court order, even after the notice period has expired. If a care home threatens to forcibly remove your loved one, contact a solicitor immediately.
What rights do residents with dementia have when a care home closes?
All the same rights as any other resident, but with additional considerations. If a resident lacks mental capacity, their next of kin or appointed attorney must be fully involved in relocation decisions. A Best Interests Assessment under the Mental Capacity Act 2005 must be conducted before any move. The local authority must also appoint an Independent Mental Capacity Advocate (IMCA) if no appropriate person is available to represent the resident's interests.
Related guides that may help
- What to do if a loved one's rights are violated in a care home — step-by-step complaints process, CQC and ombudsman routes
- How the Human Rights Act protects elderly people in care homes — Articles 2, 3, 5 and 8 explained
- Nursing home costs in the UK — funding, means testing and what happens when savings run out
- NHS Continuing Healthcare — if your loved one qualifies, the NHS covers all costs regardless of assets
- Am I legally responsible for my elderly parents? — what adult children are and are not obliged to do
Summary
When a care home closes in the UK, residents have the legal right to a minimum of 28 days' written notice, a free care needs reassessment by the local authority, consultation on relocation decisions, a suitable alternative placement that meets their assessed needs, refund of any advance payments within 28 days, and protection from forced removal without a court order. These rights apply to both council-funded and self-funding residents and are backed by the Care Act 2014, the Protection from Eviction Act 1977, and the Consumer Rights Act 2015.
Key Takeaways
- Residents must receive at least 28 days' written notice, notice to the council alone is not legally valid.
- The local authority must reassess care needs and find a suitable alternative for all residents, funded or not.
- Residents and families must be consulted on relocation, not just informed.
- Advance payments and deposits must be refunded within 28 days.
- Non-refundable admin fees are often unenforceable under the Consumer Rights Act 2015.
- A care home cannot physically remove a resident without a court order.
- NHS CHC residents: the NHS must arrange alternative accommodation, not just the council.
- Relocation stress is a real health risk, push for a gradual, well-supported transition.
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