How UK Care Fees Differ by Region, Setting and Care Needs
Care home fees in the UK can look confusing because the final cost depends on where the home is located, the type of care provided, and how complex someone’s needs are. This guide explains the main cost drivers, why prices often rise each year, and what funding routes may be available.
Paying for long term care is one of the largest financial commitments many families in the United Kingdom will ever face. Weekly fees can differ sharply between regions, even within the same town, and between residential homes, nursing homes and home based services. Understanding what drives these differences makes it easier to compare options and to plan ahead for changing care needs.
UK care home costs: what families should know
Across the UK, care homes usually charge a weekly fee that covers accommodation, meals, personal care and general living costs. On average, residential care for older people commonly runs to several hundred pounds per week, and in many areas it now exceeds a thousand pounds where residents pay privately. Nursing homes, which provide twenty four hour registered nursing support, are typically more expensive than standard residential homes.
Families often encounter two broad price levels. Self funding residents, who pay their own fees, are usually charged the full rate set by the home. People whose fees are partly or fully met by a local authority tend to be paid for at a lower, negotiated rate. The gap between the rate the council will pay and the home’s usual fee is sometimes covered through a third party top up from relatives. In addition, home care in the community is usually charged by the hour, with higher hourly rates in more expensive regions.
How fees vary by region and care setting
Regional differences in care costs reflect local wages, property prices and demand. Homes in London and the South East tend to charge the highest fees, especially in desirable areas where land and staffing costs are significant. Fees in parts of northern England, Wales, Scotland and Northern Ireland are often lower, though local hot spots and shortages of places can still push prices up.
Setting also matters. Urban care homes may charge more than those in smaller towns, but rural homes can face their own pressures, such as staffing shortages or higher transport and energy costs. Within each region, there can be a wide spread of prices between modern, purpose built homes offering larger rooms and extensive facilities and smaller homes with more basic accommodation. Home care in the community follows a similar pattern, with higher hourly costs in cities and more affluent districts.
Residential vs nursing care and cost differences
Residential care homes support people with personal care needs, such as help with washing, dressing and moving around, but they do not provide twenty four hour registered nursing on site. Nursing homes employ registered nurses around the clock and can support people with more complex conditions, such as advanced dementia, severe mobility problems or ongoing medical treatment.
Because of this additional clinical staffing and equipment, nursing homes are almost always more expensive than residential homes in the same area. The difference in weekly fee can be substantial. In England, some of this nursing cost may be covered by a flat rate contribution known as NHS funded nursing care, paid directly to the home for eligible residents. However, this contribution usually only covers part of the extra cost, so families still see a clear price gap between residential and nursing placements.
Why UK care home fees rise each year
Fees for care homes and home care services tend to rise annually, often from April when providers review their costs. Wage growth for care staff is one of the biggest drivers, particularly when the national living wage increases. Providers also face rising costs for food, energy, insurance, regulatory compliance and property maintenance, all of which must be reflected in the fees they charge.
Public funding arrangements add further pressure. Local authorities and the NHS negotiate the rates they will pay to providers, and in some years the increases they offer do not fully match the rising cost of delivering care. Where public fee rates lag behind, providers may rely more heavily on higher private fees to remain financially viable. Over time, this cross subsidy effect has contributed to a growing gap between what self funding residents pay and the rates paid for publicly funded places.
Funding care with public support and savings
When families compare individual homes, they quickly see that prices vary not only by region and care type but also by provider. Large national groups, local authority homes and smaller independent homes each set their own fee structures. The examples below give a broad illustration of self funded costs for different types of care, drawn from published guide prices and typical rates seen in practice.
| Product or service | Provider | Cost estimation |
|---|---|---|
| Residential care home place in South East England | Barchester Healthcare | Around £1,100 to £1,500 per week for self funded residents, depending on location and room type. |
| Nursing care home place in South East England | Care UK | Around £1,200 to £1,700 per week for self funded residents, with higher fees for complex needs suites. |
| Residential care home place in northern England | HC One | Around £900 to £1,300 per week for self funded residents, varying by region and facilities. |
| Residential place in a council run care home in England | Local authority provider | Commonly in the region of £750 to £1,050 per week, with fees set by each local authority and adjusted for assessed needs. |
| Hourly home care visit for older person | Independent home care agencies | Often between £18 and £30 per hour, with higher rates in London and the South East and for visits at nights or weekends. |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
These figures are only broad guides. Actual fees depend on the detailed assessment of a person’s needs, the specific home or agency, room size, whether the person shares a room, and what additional services are included. Some providers offer higher fees for short term respite or very high dependency care, and lower fees for long stay residents prepared to commit to a minimum period.
Public funding can reduce what individuals pay, but the rules differ in England, Scotland, Wales and Northern Ireland. In general, local authorities look at a person’s income and savings in a financial assessment. Those with assets above an upper capital limit usually pay the full cost of their care. Those with assets below a lower limit may have most of their fees met by the local authority, with a contribution from their income. Between the two limits, people are expected to use part of their capital on a sliding scale, alongside their income.
Local authorities may disregard the value of the person’s main home in certain situations, such as when a spouse or civil partner continues to live there. Deferred payment arrangements can allow people in residential care to delay selling their home by letting the council place a legal charge on the property and recover the costs later. In addition, some people with primarily health based needs may qualify for fully funded NHS continuing healthcare, which can cover the entire cost of care in a home or in the person’s own dwelling.
A number of benefits can also help with care related costs. Attendance allowance for people over state pension age, personal independence payment for younger adults with disabilities and carer’s allowance for eligible carers can all contribute to living and support expenses. For families looking at long term self funding, financial products such as immediate needs annuities and equity release are sometimes used, but each carries risks and requires specialist, regulated advice.
Understanding how UK care fees differ by region, by care setting and by level of need gives families a clearer picture of what future care might cost. By looking at both headline prices and the way public funding rules work, it becomes easier to compare options on a like for like basis and to consider how changing needs over time could affect both the type of care required and the budget needed to sustain it.
