Guide · rules for England, checked 18 September 2026
Care fees: who pays, and when the house counts
Most people believe the house is taken straight away. It is not. Here is what actually happens, in the order it happens.
1. The council assesses the need first
Nobody pays anything until a needs assessment says care is needed. If the main need is a health need, NHS continuing healthcare pays the whole cost with no means test. In a nursing home the NHS pays £267.68 a week towards the nursing part whoever is funding the rest.
2. The home is ignored for 12 weeks, and often for good
For the first 12 weeks of permanent care the value of the home is ignored. It stays ignored for as long as any of these people live there: a husband, wife or partner; a relative aged 60 or over; a relative who is ill or disabled; a child under 18.
3. Savings are counted against two limits
| Savings and investments (not the home) | Who pays |
|---|---|
| More than £23,250 | You pay the full fee yourself |
| £14,250 to £23,250 | The council pays; you contribute £1 a week for every £250 above £14,250, plus most of your income |
| Under £14,250 | Only your income counts, less a personal allowance of about £31 a week |
Scotland's limits are £22,750 and £36,750, with free personal care of £260.30 a week. Wales has a single limit of £50,000.
4. When the home does count, it does not have to be sold
If nobody in the list above lives there, the home counts after 12 weeks. The council must then offer a deferred payment agreement: it pays the fees and takes the money back from the sale of the house later, usually after death. Interest is 4.65% a year from 1 July 2026, compounding, plus a set-up fee of about £450 to £720 and an annual fee of about £144. You can also let the house to cover part of the cost.
5. What it costs
People paying their own way pay about £1,300 a week for a residential home and £1,535 for nursing care, more in the South East and London, less in the North. Councils pay about £900 and £1,225, so a home that charges more needs a top-up from family once the council is paying.
6. What genuinely helps
- Ask for a continuing healthcare assessment if there is a serious health need.
- Set up both lasting powers of attorney so someone can deal with the council and the bank.
- Couples: ask a solicitor about owning as tenants in common with a will that leaves each half to the children. The survivor’s half is then usually valued at little or nothing in a later means test, and the residence nil-rate band is kept.
- Know the numbers before a crisis. Half of families need care arranged within a month.
Sources: Care and Support Statutory Guidance; Age UK factsheets 38 and 40 (2026); NHS funded nursing care rate 2026-27; council deferred payment pages (2026); carehome.co.uk and Lottie fee surveys (2026); Association of Lifetime Lawyers survey (Sep 2025).