Planning for care home fees

Yes. There are two bodies that contribute towards care home fees:

• The NHS (based on your condition)
• Your local council (based on your finances).

The NHS will only pay your fees if you are very ill. The Local Authority will do a financial assessment to see if you are eligible for state-funded care. They may not make any contribution if you own more than £23,250 in assets – but we can help you structure your assets to make sure you still get the state support you are entitled to.

The financial assessment will only consider the share you own – not the whole value of your house. This is why if you live with a partner, it can be beneficial to become tenants in common rather than joint tenants. This way you can designate a smaller share of the property to one of you, or put it in a trust.

The value of your share is judged at its ‘market value’ (what you could sell it for). However, it’s possible to argue that the value of your share is lowered because fewer people would want to buy half a house with someone they don’t know.

Unless you become very ill, it’s likely you will have to pay for most or all your care home costs. Some common consequences that can sadly happen for those without proper planning are:

• You have to sell your home to pay for fees
• Your loved ones won’t get the inheritance you wanted to give them
• You can’t take advantage of state support you should be eligible for.

Remember also there is currently no cap on care home fees.

According to research, the average weekly cost of living in a residential care home in the UK in 2025 is £1,266.

This means the average monthly cost will be £5,064. If you don’t plan for these potential costs, your home may need to be sold to pay for your care. This could leave very little for your loved ones when you die.