The Cost of Dementia Care in the UK: The Data

The cost of dementia to the UK was estimated at £42 billion in 2024, and it is forecast to reach £90 billion by 2040, according to research commissioned by the Alzheimer's Society (Alzheimer's Society, Carnall Farrar research, May 2024, secondary source, accessed July 2026, subject to change).

Behind that headline sits a hard fact for families: most of the cost of dementia care is not met by the state. This page gathers the verified figures on what dementia costs, who pays for it, and how the care means test in England treats a person's income and capital. Every figure carries its named source and reference period. Care cost and means-test figures describe England unless stated, because the funding rules differ across the UK, and the wider picture connects to later-life planning through our estate planning guide. Figures are current as at July 2026 and are subject to change.

Key figures at a glance

Dementia is expensive, and a large share of the bill falls on individuals rather than the taxpayer. The Alzheimer's Society research estimates that 63% of dementia costs are borne by people with dementia and their families, while government thresholds decide how much of a care bill a person pays themselves. The table lists each headline figure with its source and period.

Figure	Value	Source & period
Total cost of dementia to the UK	£42 billion	Alzheimer's Society, 2024 (secondary)
Projected cost by 2040	£90 billion	Alzheimer's Society, 2040 forecast (secondary)
Share of cost borne by families	63%	Alzheimer's Society, 2024 (secondary)
Annual cost per person, mild dementia	£28,700	Alzheimer's Society, 2024 (secondary)
Annual cost per person, severe dementia	£80,500	Alzheimer's Society, 2024 (secondary)
People living with dementia (UK)	982,000	Alzheimer's Society, 2024 (secondary)
Upper capital limit, care means test (England)	£23,250 (subject to change)	gov.uk, 2026 to 2027
Lower capital limit, care means test (England)	£14,250 (subject to change)	gov.uk, 2026 to 2027
Attendance Allowance, higher rate	£114.60 a week (subject to change)	gov.uk, accessed July 2026
Dementia deaths, leading cause (E&W)	68,273 (12.1% of deaths)	ONS, 2024

The Alzheimer's Society rows are from named research (Carnall Farrar, May 2024) used as clearly-dated secondary context. The capital limits and Attendance Allowance rates are government figures, current as at July 2026 and subject to change. The deaths figure is ONS official statistics for 2024.

Cost measure (UK, 2024)	Estimate
Annual cost per person, mild dementia	£28,700
Annual cost per person, severe dementia	£80,500
Share of total cost, social care	Around 40%
Share of total cost, unpaid care	Around 50%
Share of cost borne by families	63%

Who pays for dementia care

Unlike NHS treatment, most social care in England is means-tested, so many people with dementia pay for their own care. A local authority assesses a person's capital, and in 2026 to 2027 someone with capital above the upper limit of £23,250 is generally expected to meet the full cost of their care, while below the lower limit of £14,250 their capital is not counted in the means test (gov.uk, 2026 to 2027, as at July 2026, subject to change). Between those two figures, a person contributes on a sliding scale.

Where the money goes. Because an estimated 63% of dementia costs fall on people with dementia and their families, and because unpaid care makes up around half of the total (Alzheimer's Society, 2024, secondary, as at July 2026, subject to change), the financial impact is often felt as a mix of care fees and lost income for family carers. The value of a person's home may or may not be counted in the means test depending on their circumstances, for example whether a spouse still lives there (gov.uk, Paying for your own care, accessed July 2026, subject to change).

Some people with dementia and a high level of health need may have their care funded by the NHS rather than a council, through NHS continuing healthcare. This is not means-tested, but it is only available where someone is assessed as having a primary health need, and eligibility depends on the assessment rather than the diagnosis alone (gov.uk, NHS continuing healthcare, accessed July 2026, subject to change). Many families find the assessment process complex, and it can be worth seeking guidance from a qualified professional.

Dementia costs the UK an estimated £42 billion a year, and most of that bill is met by families rather than the state.

Help with the cost of dementia care

Several forms of support can help with the cost, though none is designed to cover it in full. Attendance Allowance is a non-means-tested benefit for people over State Pension age who need help with personal care, paid at a lower rate of £76.70 a week or a higher rate of £114.60 a week depending on the level of need (gov.uk, Attendance Allowance, accessed July 2026, subject to change). It is not affected by income or savings.

Support (England)	Amount / basis	Source
Attendance Allowance, lower rate	£76.70 a week	gov.uk, July 2026
Attendance Allowance, higher rate	£114.60 a week	gov.uk, July 2026
Personal expenses allowance in a care home	£31.80 a week retained	gov.uk, 2026 to 2027
NHS continuing healthcare	Full NHS funding where eligible (not means-tested)	gov.uk, July 2026

Rates and thresholds are government figures, current as at July 2026 and subject to change. The personal expenses allowance is the minimum weekly income a council must let a care home resident keep. See our page on Care Home Fees for how residential costs are assessed.

What the numbers mean

Because an estimated 63% of the UK's £42 billion dementia bill falls on families (Alzheimer's Society, 2024, secondary, as at July 2026, subject to change), dementia is as much a financial event for a household as a medical one. A few themes are worth drawing out, hedged as general observations rather than predictions or advice.

Costs rise with the illness. With per-person cost climbing from £28,700 to £80,500 between mild and severe dementia (Alzheimer's Society, 2024, secondary, as at July 2026), the financial pressure tends to build over the years a condition progresses, not all at once.
The means test decides exposure. Whether a family faces the full cost turns on the £23,250 upper capital limit (gov.uk, 2026 to 2027, as at July 2026, subject to change), and homeowners are more likely to sit above it, so property wealth often drives who self-funds.
Capacity matters early. Because dementia can affect the ability to make decisions, many people choose to put a lasting power of attorney in place while they still can, so that someone they trust can manage finances and care arrangements later.

None of this points to a single right answer, and none of it is advice for any particular person. It is worth being clear about one boundary: deliberately giving away assets to reduce a future care bill can be treated by a local authority as deprivation of assets and challenged, and there is no fixed time limit on how far back a council can look (gov.uk, accessed July 2026, subject to change). For that reason, care fees planning is about understanding and limiting the impact of care costs within the rules, not avoiding them. Many people choose to discuss their position with a qualified professional. For the wider context, see the scale of the condition in our data on dementia in the UK.

Dementia care costs in Scotland, Wales and Northern Ireland

The care means-test figures on this page describe England, and the funding rules differ across the UK. Scotland provides free personal and nursing care for those assessed as needing it, which changes what a person pays. Wales and Northern Ireland operate their own means tests with their own capital limits. The Alzheimer's Society cost estimates and the ONS deaths figure cover the UK or England and Wales as noted, but the amount a family pays depends on the nation. If care may cross more than one UK nation, it can be worth checking the local rules and taking advice in the relevant nation.

Sources and methodology

Every figure on this page comes from a named source and has been checked against it. Cost estimates are drawn from research the Alzheimer's Society commissioned from Carnall Farrar (CF), published in May 2024 and used here as a clearly-dated secondary source. Means-test thresholds and benefit rates are government figures. The deaths figure is ONS official statistics.

Alzheimer's Society, The economic impact of dementia (Carnall Farrar research), May 2024. Total UK cost (£42 billion, rising to £90 billion by 2040), per-person costs by severity, the 63% family share, the split between social and unpaid care, and 982,000 people living with dementia. Secondary source.
gov.uk, Social care charging for care and support 2026 to 2027 local authority circular. Upper capital limit (£23,250), lower capital limit (£14,250) and personal expenses allowance (£31.80 a week), subject to change.
gov.uk, Attendance Allowance: what you'll get. Lower rate (£76.70) and higher rate (£114.60) a week, subject to change.
gov.uk, NHS continuing healthcare and gov.uk, Paying for your own care. How care is funded, when the NHS pays, how the home is treated, and deprivation of assets.
ONS, Deaths registered in England and Wales: 2024 (published 9 October 2025). Dementia and Alzheimer's disease as the leading cause of death (68,273 deaths, 12.1%).

Government thresholds and benefit rates are current as at July 2026 and subject to change. Alzheimer's Society estimates carry the modelling caveats set out in the source research; the ONS figure is official statistics for 2024.

Frequently asked questions

How much does dementia care cost in the UK?

The total cost of dementia to the UK was estimated at £42 billion in 2024, forecast to reach £90 billion by 2040, with an average annual cost per person of £28,700 for mild dementia and £80,500 for severe dementia (Alzheimer's Society, 2024, secondary source, as at July 2026, subject to change). Individual costs vary widely with the level of care and where you live.

Who pays for dementia care?

Most social care in England is means-tested, so many people pay for their own care. In 2026 to 2027 someone with capital above the upper limit of £23,250 is generally expected to meet the full cost, and capital below £14,250 is not counted (gov.uk, 2026 to 2027, as at July 2026, subject to change). An estimated 63% of dementia costs fall on families (Alzheimer's Society, 2024, secondary, as at July 2026).

Is dementia care free on the NHS?

Not usually. NHS treatment is free, but ongoing social care is generally means-tested. Some people with a high level of health need may qualify for NHS continuing healthcare, which is not means-tested, but it depends on an assessment of a primary health need rather than the dementia diagnosis alone (gov.uk, accessed July 2026, subject to change). Many families find the assessment complex.

What benefits help with dementia care costs?

Attendance Allowance is a non-means-tested benefit for people over State Pension age who need help with personal care, paid at £76.70 or £114.60 a week depending on need (gov.uk, accessed July 2026, subject to change). A care home resident must also be left with a personal expenses allowance, £31.80 a week in 2026 to 2027 (gov.uk, 2026 to 2027, as at July 2026, subject to change).

Can I give my home away to avoid dementia care fees?

Deliberately giving away a home or other assets to reduce a future care bill can be treated by a local authority as deprivation of assets and challenged, and there is no fixed time limit on how far back a council can look (gov.uk, accessed July 2026, subject to change). Care fees planning generally focuses on understanding and limiting the impact of care costs within the rules, and many people choose to take advice from a qualified professional first.

Do these cost figures apply across the whole UK?

The Alzheimer's Society cost estimates are UK-wide and the ONS deaths figure covers England and Wales, but what a family actually pays depends on the nation. The means-test limits here are for England; Scotland provides free personal and nursing care for those assessed as needing it, and Wales and Northern Ireland set their own limits. If care may cross more than one UK nation, it can be worth checking the local rules.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax, independent financial advice 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 is based on the law and figures of England and Wales, and other UK jurisdictions may differ. Statistics are drawn from the named sources above for the periods stated. Government thresholds and benefit rates are current as at July 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 their individual circumstances.

The Cost of Dementia Care in the UK