Care Home Costs UK 2026: Complete Pricing Guide
A detailed breakdown of care home costs in the UK for 2026, including regional variations, what's included in fees, and all available funding options.
Michael Thompson
Care Finance Advisor
Care Home Costs UK 2026: Complete Pricing Guide
Understanding care home costs is essential when planning for long-term care. This comprehensive guide breaks down current pricing, regional variations, and all the funding options available to help manage these costs.
Average Care Home Costs in 2026
Care home costs vary significantly depending on the type of care, location, and amenities. Here's what you can expect to pay:
National Averages
| Type of Care | Weekly Cost | Monthly Cost | Annual Cost |
|---|---|---|---|
| Residential Care | £850-1,100 | £3,685-4,770 | £44,200-57,200 |
| Nursing Care | £1,050-1,400 | £4,550-6,070 | £54,600-72,800 |
| Dementia Care | £950-1,350 | £4,120-5,850 | £49,400-70,200 |
| Specialist Nursing | £1,200-1,800 | £5,200-7,800 | £62,400-93,600 |
Regional Cost Variations
Costs vary dramatically across the UK:
Most Expensive Regions
- London: 30-50% above national average
- South East: 20-30% above average
- South West: 10-20% above average
Most Affordable Regions
- North East: 10-15% below average
- Wales: 5-15% below average
- Yorkshire: 5-10% below average
What's Included in Care Home Fees?
Standard Inclusions
Most care home fees cover:
- ✅ Accommodation (private or shared room)
- ✅ All meals and snacks
- ✅ Personal care assistance
- ✅ Laundry services
- ✅ Cleaning and housekeeping
- ✅ Activities and entertainment
- ✅ Utilities (heating, lighting, water)
- ✅ 24-hour staff support
Often Extra
You may need to pay separately for:
- 📌 Hairdressing and beauty treatments
- 📌 Chiropody and podiatry
- 📌 Newspapers and magazines
- 📌 Telephone calls
- 📌 Private transport
- 📌 Specialist therapies
- 📌 Premium room upgrades
- 📌 Accompanied outings
Tip: Always ask for a full breakdown of what's included and any potential additional costs before committing to a care home.
Factors That Affect Pricing
Location
Urban areas, especially London and the South East, command significantly higher fees due to:
- Higher property costs
- Increased staff wages
- Greater demand
Level of Care Required
The more support needed, the higher the cost:
- Basic residential care is most affordable
- Nursing care with 24/7 qualified nurses costs more
- Specialist dementia or complex care is most expensive
Room Type
- Shared rooms: Becoming rarer but still 10-20% cheaper
- Standard single rooms: The norm
- En-suite facilities: May add £20-50 per week
- Premium suites: Can add £100+ per week
Home Quality and Amenities
Homes with superior ratings, extensive grounds, or premium facilities naturally charge more.
How to Pay for Care
Self-Funding
If you have assets above £23,250 (in England), you're considered a self-funder and will pay the full cost of care.
Options for self-funders:
- Using savings and investments
- Renting out or selling property
- Equity release schemes
- Care fees annuities
- Deferred payment agreements
Local Authority Funding
If your assets are below £23,250, the council may contribute to your care costs:
| Asset Level | Contribution |
|---|---|
| Below £14,250 | Council pays (you contribute from income) |
| £14,250-£23,250 | Partial council funding |
| Above £23,250 | Self-funding |
Note: Your main home may be excluded from the assessment if your spouse or dependent relative lives there.
NHS Continuing Healthcare (CHC)
If you have a "primary health need," you may qualify for fully NHS-funded care:
- Free at the point of delivery
- Covers all care costs
- Requires clinical assessment
- Reassessed annually
Funded Nursing Care (FNC)
Even if you don't qualify for full CHC, you may receive:
- Currently £219.71 per week (2025/26)
- Contributes towards nursing costs
- Available to all in nursing homes
Attendance Allowance
A non-means-tested benefit for those over 65:
- Lower rate: £72.65 per week
- Higher rate: £108.55 per week
- Can be used towards care costs
Planning Ahead
Care Fees Planning Options
Immediate Care Annuities
- Pay a lump sum
- Receive guaranteed income for life
- Protects against rising costs
Deferred Payment Agreements
- Council pays while you're in care
- Repaid from estate after death
- Interest charged
Long-Term Care Insurance
- Purchase before needing care
- Covers future care costs
- Becoming more available
Getting Financial Advice
Consider consulting:
- A specialist care fees advisor
- An independent financial advisor (IFA)
- Age UK's information service
- Your local council's adult services
Questions to Ask About Fees
When evaluating care homes, ask:
- What is the weekly/monthly fee?
- What does the fee include?
- What additional services cost extra?
- When and how often do fees increase?
- What is the notice period for fee increases?
- Is there a contract, and what are the terms?
- What happens if funding runs out?
- Are there any hidden charges?
Fee Increases
Care home fees typically increase annually:
- Average annual increase: 5-8%
- Usually reviewed in April/May
- 30-60 days notice typically required
Conclusion
Care home costs represent a significant financial commitment, but with proper planning and an understanding of available funding options, the burden can be managed. Don't hesitate to seek professional advice and take time to explore all options available to you.
Need help finding affordable care? Search our directory to compare care homes in your area, or contact us for guidance on funding options.