Paying for care and nursing homes

Care home costs

Most people will have to pay something towards their care home costs. The amount you will pay depends on the type of care you need and the property, savings and investments that you have.

If you have savings and investments of less than £23,250, you could qualify for help to pay for your care home. 

To find out if you’re likely to qualify for help to pay for your care home, you can estimate your care costs. Get an estimate of how much you'll pay for care

How we work out what you will pay

We will do a financial assessment to work out how much you will pay towards the cost of your care. 

You'll find examples of financial assessments on this page.

Example 1: Arthur, has savings of £17,000 but doesn’t own any property

Arthur is 77 and needs to live permanently in a care home.

He does not own any property but does have around £17,000 in savings. 

He qualifies for help from the council to help pay his care home fees because he has savings of less than £23,250.

He will use some of his savings to pay for his care and support each week until his savings go below £14,250. 

How we work it out 

Arthur’s care costs

His care home fees cost £1,025 each week. 

What he pays 

After the financial assessment, his contribution towards his care home bill is £235.35 each week.

He also gets a personal expenses allowance of £30.65 per week.

What we mean by personal expenses allowance

The personal expenses allowance is an amount set by the Department of Health. It is the minimum amount you must be left with if you are in a permanent care home placement. 

How it’s worked out

Arthur’s weekly income includes:

• £175 state pension
• £80 private pension
• £11 of tariff income from his savings (he has £2,750 above the lower threshold amount of £14,250, so he pays £1 for every or part of £250).

His total income each week is £266.

Arthur keeps some of his income back, to cover daily expenses. This is £30.65 per week.

£266 income -  £30.65 personal expenses allowance = £235.35

This is the amount Arthur can afford to pay. 

What we pay 

Arthur pays £235.35 towards his care. 

The full weekly cost of his care home is £1,025. 

There is £789.65 left to cover the bill. This is the amount the council pays.

Example 2: Beryl, has savings of £13,000 and owns property with her husband

Beryl is 81 and needs to live permanently in a nursing home. 

She is married and owns the home she shares with her husband. She also has around £13,000 in savings.

Beryl qualifies for help from the council to pay towards her care home fees because she has savings of less than £14,250. 

The value of her home isn’t counted in her financial assessment, because her husband will continue to live in it. 

How we work it out 

Beryl’s care costs

Her nursing home fees cost £948 each week.

What she pays 

After the financial assessment, her contribution towards her nursing home bill is £184.35 each week. 

She also gets a personal expenses allowance of £30.65 per week.

What we mean by personal expenses allowance

The personal expenses allowance is an amount set by the Department of Health. It is the minimum amount you must be left with if you are in a permanent care home placement. 

How it’s worked out

Beryl’s weekly income includes:

• £175 state pension
• £80 private pension (we ignore 50% of this, as she shares it with her husband)

Her total income each week is £215.

Beryl keeps some of her income back, to cover daily living costs. This is £30.65 per week. 

£215 income - £30.65 personal allowance = £184.35

This is the amount Beryl can afford to pay. 

What we pay 

Beryl pays £184.35 towards her care. 

The full weekly cost of her nursing home is £948. 

There is £763.65 left to cover the bill. This is the amount the council pays.