Cost of Care Homes in the UK: 2026 Fees and Funding

The average residential care home in the UK costs about £1,298 a week in 2026, and a nursing home about £1,535 a week (carehome.co.uk, data as at September 2025, updated July 2026, subject to change). That is roughly £67,500 a year for residential care and £79,800 a year for nursing care.

Those are self-funded averages, and the real figure depends heavily on where you live, the type of care needed and the individual home. This guide sets out the current numbers, explains the means test that decides who pays, and shows where careful planning may help limit the impact of care fees on an estate. Figures are current as at August 2026 and are subject to change.

How much does a care home cost in 2026?

Care homes fall into two broad types. A residential home provides accommodation, meals and help with daily living. A nursing home adds round-the-clock care from registered nurses, which is why it costs more. The table below shows the current UK averages for people paying their own fees.

Type of care	Average per week	Average per year
Residential care home	£1,298	£67,496
Nursing home	£1,535	£79,820

Source: carehome.co.uk, self-funded averages, data as at September 2025, article updated July 2026. Subject to change. Individual homes vary widely.

Care home costs by region

Location is the single biggest factor. Fees in London and the South East run well above the national average, while much of the North and Midlands sits below it. The figures below give a sense of the spread for self-funded placements.

Area	Residential (per week)	Nursing (per week)
London	£1,548	£1,759
North West England	£1,143	£1,422

Source: carehome.co.uk, data as at September 2025, updated July 2026. Subject to change. Regional averages hide large differences between individual homes.

Why nursing homes cost more than residential care

The extra cost of a nursing home reflects the registered nursing element. Where a resident in a nursing home needs that nursing care, the NHS pays a set weekly contribution direct to the home, known as NHS-funded nursing care. From 1 April 2026 the standard rate is £267.68 a week, up from £254.06 (gov.uk news, 9 March 2026, subject to change). This is paid regardless of savings, but it covers only the nursing portion, not the wider cost of the placement.

Capital	What happens (England, 2025-26)
Above £23,250	Full self-funding
£14,250 to £23,250	Sliding scale, plus income
Below £14,250	Capital disregarded, income still counts

Does your home count towards the fees?

For a permanent care home placement in England, the value of a person's home is usually included in the means test. There are important exceptions. The property is generally disregarded where a spouse or civil partner, or another qualifying relative such as someone over 60 or a dependent child, still lives there. It is also disregarded for the first 12 weeks of a permanent stay.

Where a home does need to be counted, a council may offer a deferred payment agreement, which lets the fees build up as a charge against the property so that it does not have to be sold during the person's lifetime (gov.uk, 2025-26, subject to change). Residents also keep a Personal Expenses Allowance of £30.65 a week that councils cannot take into account (gov.uk local authority circular, 2025-26, subject to change).

Deprivation of assets. Councils can look at whether someone has given away money or property mainly to avoid care fees, known as deliberate deprivation of assets. Where they decide that has happened, they can assess the person as if they still held those assets. This is one reason later-life gifting is a matter for careful, individual consideration rather than a general rule of thumb.

Free care: NHS Continuing Healthcare

Some people with significant ongoing health needs qualify for NHS Continuing Healthcare, which covers the full cost of a care home placement, including accommodation, and is not means tested. Eligibility depends on the nature and complexity of the health needs rather than a diagnosis, and it is assessed by the NHS (NHS, as at August 2026, subject to change). Where someone does not qualify for full funding but is in a nursing home and needs nursing, the NHS-funded nursing care contribution described above may apply instead.

Planning ahead for the impact of care fees

Care fees are one of the largest costs many families face in later life, and they interact with a will, an estate and any inheritance tax position. Planning cannot make fees disappear, and no arrangement can guarantee that a home is kept out of a means test, but organising affairs in good time gives more room to consider the options. A few practical points tend to matter most.

A lasting power of attorney. If someone loses capacity without one in place, family may need to apply to the Court of Protection before they can manage money or arrange care. Setting up a lasting power of attorney in advance is usually simpler and quicker.
Keep the will current. How a couple own their home, and how a will is drafted, can affect what happens on a first death and what is later assessed. This sits within wider estate planning.
Understand the tax picture. Care spending reduces an estate, while gifts made to limit fees carry their own rules; our guide to inheritance tax explains how the allowances work.
Take individual advice early. The right approach depends entirely on personal circumstances, so it is worth speaking to a suitably qualified professional before acting.

For a fuller explanation of how funding and thresholds fit together, see our dedicated guide to care home fees, or arrange a consultation to talk through your own situation.

Key facts at a glance

Average residential care: about £1,298 a week (carehome.co.uk, Sept 2025 data, subject to change).
Average nursing care: about £1,535 a week (carehome.co.uk, Sept 2025 data, subject to change).
England upper capital limit: £23,250; lower limit: £14,250 (gov.uk, 2025-26, subject to change).
NHS-funded nursing care standard rate: £267.68 a week from 1 April 2026, up from £254.06 (gov.uk news, 9 March 2026, subject to change).
Personal Expenses Allowance: £30.65 a week (gov.uk, 2025-26, subject to change).

Frequently asked questions

How much does a care home cost in the UK in 2026?

A residential care home costs around £1,298 a week on average in 2026, roughly £67,500 a year, and a nursing home around £1,535 a week, roughly £79,800 a year (carehome.co.uk, data as at September 2025, updated July 2026, subject to change). These are self-funded averages, and individual homes vary widely by area and type of care.

At what savings level do you have to pay for a care home?

In England, if your capital is above £23,250 you generally pay the full cost of a care home yourself. Between £14,250 and £23,250 you contribute on a sliding scale alongside your income, and below £14,250 your capital is left out of the assessment, though income is still counted (gov.uk local authority circular, 2025-26, subject to change). Wales sets its own limits.

Do you have to sell your house to pay for care?

Not always. The value of a home is generally disregarded in the means test where a spouse, civil partner or another qualifying relative still lives there, and for the first 12 weeks of a permanent stay. Where the home is counted, a council may offer a deferred payment agreement so the fees become a charge on the property rather than requiring a sale during the person's lifetime (gov.uk, 2025-26, subject to change).

What is NHS-funded nursing care worth in 2026?

The standard NHS-funded nursing care contribution is £267.68 a week from 1 April 2026, up from £254.06, paid by the NHS direct to a nursing home for residents who need registered nursing care (gov.uk news, 9 March 2026, subject to change). It is not means tested, but it covers only the nursing element, not the full cost of the placement.

Is care free if you have a health condition like dementia?

Care is not automatically free because of a particular diagnosis. Some people with significant, complex health needs qualify for NHS Continuing Healthcare, which is not means tested and covers the full placement, but eligibility is assessed on the nature of the needs rather than the condition itself (NHS, as at August 2026, subject to change). Many people with conditions such as dementia do not meet the threshold and are means tested in the usual way.

Are care home costs different in Scotland and Northern Ireland?

Yes. Scotland operates a separate system that includes free personal and nursing care contributions from the local authority, with its own capital thresholds. Northern Ireland runs a broadly similar means-tested system to England but with its own rules. The figures in this guide are for England, with Wales setting its own limits, so check the relevant national guidance for your area. Subject to change.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax and client care, working with families across England and Wales.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.

Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It describes the position in England, with Wales, Scotland and Northern Ireland setting their own rules. Care costs are self-funded averages from third-party data and individual fees vary widely. Figures and rules are current as at August 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider individual circumstances.

Cost of care homes in the UK: what to expect in 2026