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Who Pays for Care Home Fees? A Plain-English Guide (2026)

CS
Claire Saltwater26 August 2026
Who pays for care home fees — a 2026 guide to self-funding, council funding and NHS funding.

Working out who pays for a care home is the question that worries families most. There are three main routes — and many people end up using a combination of them.

Whether you pay the fees yourself, your council contributes, or the NHS steps in comes down to two things: how much you have, and what kind of needs you have. Here's how it fits together.

The three ways care gets paid for

  • Self-funding — you pay the fees yourself, usually because your savings or property put you over the means-test threshold.
  • Local authority (council) funding — the council pays some or all of the cost after a financial assessment.
  • NHS funding — the NHS contributes to, or fully covers, care where your needs are primarily health-related.

How your savings decide it (England)

For council help, the key numbers are the capital thresholds — frozen since 2010:

Who pays, based on your savings Council may fund mostYou contributeYou pay in full £14,250 £23,250Under £14,250: savings aren’t counted (you still contribute from income).£14,250–£23,250: a "tariff income" of about £1/week for every £250 of savings.Over £23,250: you’re a self-funder and meet the full cost yourself.England, 2026. Wales, Scotland and Northern Ireland use different thresholds.
Above £23,250 you self-fund; below £14,250 your savings aren’t counted.

How the council works it out

You don't have to guess — the council assesses both your needs and your finances, free of charge:

The two free assessments 1 Contact council Ask adult socialservices for anassessment 2 Needs assessment What care andsupport you need 3 Financial assessment What you can affordto contribute 4 Your outcome Self-funded,part-funded or fullyfunded
Both assessments are free to request — start here before comparing homes.

Self-funding vs council-funded — what changes

Self-funder or council-funded? If you self-fund• You pay the full weekly fee• You choose any home you can afford• Ask about NHS FNC if nursing is needed• Get regulated financial advice (SOLLA) If the council funds• You contribute from income + savings• Council pays up to its agreed rate• A "top-up" may be needed for a pricier home• You keep a Personal Expenses Allowance
Self-funders often pay more than the rate councils negotiate with homes.
Even if you’ll clearly self-fund, still request a needs assessment — it can unlock NHS contributions and benefits, and it’s free.
💬 Compare care homes and guide prices near you. Search the AskBart directory to see homes, CQC ratings and costs in your area — or ask Bart for help finding the right one.

Frequently asked questions

Does everyone pay the same care home fees?

No. Self-funders often pay more than councils’ negotiated rates, and prices vary by region, care type and home.

Will the NHS ever pay the whole cost?

Yes — through NHS Continuing Healthcare, if your needs are assessed as primarily health-related. It’s not means-tested.

Do I have to sell my house?

Not always. If a spouse or certain relatives still live there it isn’t counted, and a Deferred Payment Agreement can delay selling.

CS

Claire Saltwater

Editor · AskBart

Claire Saltwater is AskBart's Editor and a care-home industry veteran. One of AskBart's earliest team members, she has spent years working in and around social care — so she understands first-hand the difficult, often overwhelming decisions families face when choosing a care home. Claire writes and edits AskBart's advice guides with one goal: clear, genuinely independent information, free of jargon and sales pressure. Away from her desk she loves a good farmers' market and time with her two young children.

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