Care home fees explained: funding care in Wales and England

Working out how to pay for a care home is one of the most stressful parts of arranging care — and one of the most misunderstood. This guide explains, in plain English, who pays for what. (Figures are correct for 2025/26; thresholds can change, so always check the latest or ask for an assessment.)

The three main ways care is funded

1. Self-funding — you pay the fees yourself, usually because your capital is above the threshold.
2. Local authority support — the council contributes after a needs assessment and a means (financial) assessment.
3. NHS funding — for those with significant health needs, through NHS Continuing Healthcare or Funded Nursing Care.

Most people fall into one of these, and some move between them over time.

Funding in Wales

Wales has the most generous rules in the UK, with a single capital threshold of £50,000 for residential care home fees:

• If your capital and savings are above £50,000, you fund your own care.
• If they’re below £50,000, your local authority should help with the cost, based on what you can afford to contribute from income.

Unlike England, Wales does not have a separate lower threshold. There’s also a weekly cap on what local authorities charge for non-residential (home) care. For the current figures, Age Cymru and GOV.WALES publish up-to-date factsheets.

Funding in England

England uses two thresholds:

• Above £23,250 in capital — you pay your own fees (self-funding).
• Below £14,250 — your capital is not counted, though you still contribute from income such as pensions.
• Between £14,250 and £23,250 — you contribute on a sliding scale (a “tariff income”).

The means assessment — and your home

If you ask the local authority for help, they carry out a financial assessment of income and capital. For permanent residential care, the value of a person’s home can be counted — but it’s disregarded in important cases, such as when a husband, wife, partner or a dependent relative still lives there. Because these rules are complex, it’s wise to get advice before selling or signing anything.

NHS Continuing Healthcare

If a person has significant, ongoing health needs, they may qualify for NHS Continuing Healthcare (CHC) — in which case the NHS pays their full care home fees, regardless of savings. In a nursing home, the NHS may also pay a Funded Nursing Care contribution toward the cost of nursing. Both are assessed separately from local authority funding, and it’s always worth asking to be considered.

Top-up fees

If you choose a home that costs more than the local authority will pay, a family member can sometimes pay a third-party top-up to cover the difference. Make sure any top-up is genuinely affordable for the long term before agreeing to it.

Where to get help

You don’t have to work this out alone. A few good places to start:

• A free assessment of need from your local authority — anyone can request one.
• Independent guidance from Age Cymru, Age UK and the Money Helper service.
• A conversation with the care home itself — a good home will be transparent about fees and what’s included.

At BIRA, our team can talk you through the options and arrange a free, no-obligation assessment so you know exactly where you stand. Get in touch whenever you’re ready, or read more about the types of care we provide.

This guide is general information, not financial or legal advice. For decisions about your own circumstances, seek advice from a qualified adviser.