UK Care Home Fees Calculator — 2026
How much will care home fees actually cost you — after the means test?
Estimate weekly and annual care home fees, what the Local Authority means test will contribute, and how long your savings will last. Covers England, Wales, Scotland and Northern Ireland with correct thresholds. Includes 12-week property disregard, tariff income, Funded Nursing Care, and pointers to NHS Continuing Healthcare.
Estimates only. Financial assessment is done by your Local Authority under the Care Act 2014. Get independent advice before selling assets or arranging care.
How the Local Authority means test works (England)
The two capital thresholds
England and Northern Ireland use a two-threshold system under the Care Act 2014:
- Above £23,250 (upper limit): You’re a self-funder. You pay the full care home fee.
- Between £14,250 and £23,250: The council contributes, but “tariff income” of £1/week per £250 capital above the lower limit is added to your assumed weekly income.
- Below £14,250 (lower limit): No capital counted. Council pays, leaving you enough income for Personal Expenses (£32.45/week in 2024-25).
The income contribution
All your income (State Pension, occupational pension, benefits other than Attendance Allowance and Disability Living Allowance mobility component) is used towards fees, except the Personal Expenses Allowance (PEA) of £32.45/week. If your spouse remains at home, half of any joint pension is disregarded.
Worked example — self-funder
Care home fee £1,160/week. Capital £40,000 (above £23,250 limit) → self-funder. You pay £1,160/week from savings and income — about £60,320/year. Capital depletes at roughly £780/week after your £380 weekly income goes in. £40,000 → £23,250 takes about 21 weeks; then means-tested support begins.
Worked example — means-tested
Capital £20,000 (in the £14,250–£23,250 band). Tariff income: (£20,000 − £14,250) ÷ £250 = £23/week. Weekly income £380 + tariff £23 = £403 assumed. Less PEA £32.45 = £370.55 contribution from you. The Local Authority pays the rest up to their agreed rate — you may have to pay a top-up if the home costs more than the LA rate.
Capital thresholds and free care rules across England, Wales, Scotland, Northern Ireland
| Country | Upper limit | Lower limit | Free care payments |
|---|---|---|---|
| England | £23,250 | £14,250 | Funded Nursing Care £235.88/wk (nursing only) |
| Wales | £50,000 | — (single threshold) | Funded Nursing Care £199/wk |
| Scotland | £32,750 | £21,500 | Free Personal Care £248.70/wk + Free Nursing Care £111.90/wk |
| N. Ireland | £23,250 | £14,250 | Funded Nursing Care £100+/wk (varies by Trust) |
Scotland — Free Personal & Nursing Care
Scots aged 65+ in a care home receive £248.70/week for personal care and, if in a nursing home, an additional £111.90/week for nursing. These are flat payments regardless of means. Residential (“hotel”) costs remain means-tested against the Scottish thresholds.
Wales — single high threshold
Wales uses a single capital threshold of £50,000 — well above England’s £23,250 self-funder line. Below £50,000, you receive Local Authority support and contribute from income less PEA (£39/week in Wales).
When is your property disregarded? Deferred Payment Agreements explained
Property disregards
Your home is not counted as capital if any of the following people live there:
- Your spouse, civil partner, or a partner who lived with you
- A relative aged 60+
- A relative who is incapacitated
- A dependent child under 18
- An ex-partner who is a lone parent
The 12-week disregard
If none of those apply, the Local Authority still disregards your property for the first 12 weeks of permanent residence. This gives time to sell or arrange alternative funding. After 12 weeks, the property is counted — often pushing you back above the £23,250 threshold.
Deferred Payment Agreements (DPA)
You can ask the council to loan against your property’s value so you don’t have to sell during your lifetime. Interest accrues (currently ~5–6% in 2024-25). The debt is repaid when the property is eventually sold, usually after death. Many councils charge a small admin fee. Widely misunderstood — DPAs are available to anyone, not only those in financial difficulty.
Gifting property to avoid the means test
Councils can use “deliberate deprivation” rules to treat gifted assets as still belonging to you if they conclude the transfer was done to avoid care fees. There is no safe time limit — the test is intent. Gifts made years before care was foreseeable are much harder to challenge; recent transfers are routinely caught.
When the NHS pays for all your care — Continuing Healthcare explained
NHS Continuing Healthcare (CHC)
If your primary need is a health need rather than social care, the NHS pays for 100% of your care — not just the nursing element. That includes accommodation, personal care, and nursing in a care home, or full-cost home care. CHC is assessed using the Decision Support Tool (DST) across 12 care domains, looking for a level of need with sufficient nature, intensity, complexity or unpredictability to be a ‘primary health need’.
About 160,000 people receive CHC nationally. Successful applications often hinge on having an independent advocate at the DST meeting — the Beacon service (charity) offers help.
Funded Nursing Care (FNC)
A flat payment of £235.88/week (2024-25) paid directly to the nursing home by the NHS, covering the registered-nurse element of care. Available to all nursing home residents who don’t qualify for full CHC — regardless of income or savings. Reduces your weekly fee by this amount.
Attendance Allowance
Attendance Allowance (£110.40/week higher rate, £73.90/week lower in 2024-25) is payable if you have a physical or mental disability and you’re 65+. Important: AA stops when the LA starts funding your care. Self-funders can and should continue claiming. Not means-tested.
❓ Frequently askedFrequently asked questions
What is the £23,250 care threshold?
The upper capital limit in England and Northern Ireland. Above this, you’re a self-funder and pay the full care home fee. Below £14,250 (lower limit) no capital is assessed. Between the two limits, tariff income of £1/week per £250 is added to your assumed income.
Does my house count towards the means test?
Not if your spouse, civil partner, a relative over 60, or a dependent child lives there. Otherwise the property is disregarded for the first 12 weeks, then counted. A Deferred Payment Agreement lets you avoid selling during your lifetime.
Can I give my house away to avoid care fees?
Risky. Councils use “deliberate deprivation” rules to treat gifted assets as still yours if they conclude the transfer was intended to avoid care fees. No safe time limit — it depends on intent. Gifts made long before care was foreseeable are harder to challenge; recent transfers are routinely caught.
How much do care homes cost in the UK?
2024 averages: residential £1,160/week (£60,320/yr), nursing £1,410/week (£73,320/yr). Vary hugely by region — London and SE often 30-50% above national average. Specialist dementia homes often cost £1,500+/week.
What is NHS Continuing Healthcare?
If your primary care need is a health need rather than social care, the NHS pays for 100% of your care including residential/nursing costs. Assessed via the Decision Support Tool across 12 domains. Worth applying — the financial difference is enormous — but criteria are strict.
Should I take out a long-term care insurance policy?
Pure long-term-care policies largely disappeared from the UK market after 2010. Remaining options: immediate needs annuities (purchased at entry to care — exchanges capital for a lifetime payment to the care home, tax-free) and enhanced annuities. An IFA specialising in later life (look for SOLLA membership) can model these.