Arranging care for yourself or someone you love is a significant step. Understanding how care is funded can feel overwhelming at first, but you do not have to navigate it alone.

How a care home placement is funded will depend on individual circumstances, including assessed care needs, income and capital such as savings or property.

A helpful starting point is understanding whether needs are mainly related to:

• Health care
• Social care

This distinction determines who may be responsible for funding support.

When the NHS May Be Responsible

If care is needed because of complex, intense or unpredictable health needs, the NHS may contribute towards — or fully fund — the cost of care.

There are two possible NHS funding routes for people living in care homes.

NHS Continuing Healthcare (CHC)

NHS Continuing Healthcare (CHC) is funding provided by the NHS for individuals assessed as having a primary health need .

If someone is eligible, CHC usually covers the full cost of care, including accommodation and personal care. It is not means-tested.

Eligibility is decided through a structured NHS assessment that looks at:

• The nature of needs
• Their intensity
• Their complexity
• Their unpredictability

If you think health needs may be the main reason care is required, we encourage you to read our which explains the process in more detail.

Funded Nursing Care (FNC)

If nursing care from a registered nurse is required, but the person does not qualify for full NHS Continuing Healthcare, the NHS may pay a weekly contribution directly to the care home towards nursing costs.

For 2026/27, the rate is £267.68 per week (subject to annual review).

This contribution relates to nursing care only and does not cover accommodation or personal care costs.

When the Local Authority May Contribute

If needs are primarily social care related, your local authority may provide financial support depending on:

1. A care needs assessment
2. A financial assessment

If capital exceeds £23,250 (England), individuals will usually be expected to fund their own care. If assets fall below this threshold, support may become available following assessment.

If your capital is approaching this level, we recommend contacting the local authority at least three months in advance, so there is time to plan smoothly.

In certain circumstances — such as where a spouse or dependent relative continues to live in the property — the value of the home may not be included in the financial assessment.

Funding arrangements need to be confirmed before moving into the home, and we are always happy to guide you towards the right contacts to begin those conversations.

Many families choose to fund their own care, either independently or by topping up local authority support.

If you are self-funding, you are free to choose any care home able to meet assessed needs. Some families also find it helpful to seek advice from an independent financial adviser when planning longer-term arrangements.
 

Clear and Transparent Agreements

Everyone moving into the home will receive a written contract, regardless of how their care is funded.

This document sets out clearly:

• The room to be occupied
• Care and services included in the fee (including meals)
• Fees payable for privately funded placements
• Any additional services not included in the standard fee
• Rights and responsibilities of the individual moving into the care home
• Rights and responsibilities of the provider
• Notice periods and terms of placement

We believe transparency and clarity are essential to building trust from the very beginning.