Who pays for what across health and social care is anything but straightforward, and trying to navigate a path through this when there is an urgent or changing care need is invariably a difficult challenge.

Many people don't realise that there is a difference between health and social care, including that the former is free and the latter is means tested. For example, health care is free, provided and funded by the NHS. 

In contrast, The Local Authority (as opposed to the NHS) is only bound to provide social care services and this is means tested. For example, an individual who requires support getting dressed in the mornings and with transferring from room to room would be deemed to have social care needs. In this case, it would fall into the Local Authority’s remit and would not be the responsibility of the NHS.

Typical Costs of Care

According to authoritative Laing Buisson Care Homes for Older People studies, the average weekly cost of a UK residential care home in 2025 is £1,042, and for a nursing care home is £1,372.  Average care home costs have risen by 9.8% and 8.3% respectively since 2024.

The above represents weighted averages from the authoritative Laing Buisson Care Homes for Older People studies and illustrates the fact that care home fees have been rising at above-inflation rates for most of the past decade. There was a significant % increase in fees for 2024 which reflect a significant increase in inflation as well as the likelihood that reduced occupancy rates post pandemic had an impact.

However, the cost of a care home, either residential or nursing, varies considerably by region and the level of services and facilities available.

Unfortunately, data that separately highlights state-paid and self-paid fee inflation is hard to come by, so data is likely to understate the position for self-funders. Reference to recent editions of the same Laing Buisson Care Homes for Older People studies in respect of average UK fee levels for both residential and nursing care homes confirm the cross subsidy that exists.

Home care costs can also vary hugely depending upon location. As with care homes, there are significant regional variations and costs will also depend on what sort of care you need, how many hours of care you need and what times of the day and week you need it.

The UK Home Care Association suggests a recommended minimum hourly rate of £32.14 per hour.  This rate allows for full compliance with the new National Living Wage, the National Insurance contribution and threshold changes and the delivery of sustainable, good quality, regulated homecare services.

The Homecare Association emphasises that this is a minimum price, not a fair price that truly recognises the essential work of care workers. A fee rate of £33.87 per hour is deemed required to pay care workers an equivalent wage to an NHS Band 3 Healthcare Assistant with 2+ years' experience.

Establishing self-funder status

Key steps in establishing whether your care needs will have to be funded in part or in full by yourself or family include the following;

  1. Understanding the nature and extent of your care needs and the likely cost of meeting them.
  2. Understanding what care services you can secure free of charge from your local authority or other third party (e.g. charities and support services) to help meet these needs.
  3. If part of the need relates to health care, establishing whether you are eligible for free NHS Continuing Health Care funding (NHS CHC) – don’t forget, if you are not currently eligible, but your health deteriorates, your needs may become eligible in the future.
  4. If you are not eligible for NHS CHC, establishing whether you are eligible for NHS Funded Nursing Care (FNC).
  5. Understanding the extent to which your local authority will fund any assessed social care needs.
  6. Establishing whether you have any insurances that may cover some or all of your care costs.
  7. Understanding the impact (if any) that legislation may have on the funding of your care needs.
  8. Understanding your entitlement to state benefits.

 

Helping you to find your way

The care systems across the UK can be confusing and difficult to navigate, especially when you’re dealing with them for the first time, or in stressful circumstances where you are trying to get answers to urgent questions. Even worse is the fact that it’s difficult to know where to turn for reliable answers, or whether the answers you’re getting are accurate and up to date.

So we produced a selection of clear, accessible guides – from our guide getting the care you need, to our guide to accessing NHS Continuing Healthcare – to serve as reliable sources of information, support and guidance for anyone who is trying to find care, support or the right living environment for themselves or an older relative.

Click here to access our online store:
https://store.careboxonline.co.uk/

We have distilled years of experience supporting clients with the real, day to day issues that they face, as well as our practical understanding of the difference between what should happen in theory and what does happen in reality when people are trying to get the best outcomes for themselves or their loved ones.

Key Facts

  • One in eight people live for 8 years or more in a care home according to care annuities provider, JUST.
  • The UK has an ageing demographic.
  • Long term care if required, is on average the second largest form of expenditure in a lifetime after a mortgage.
  • Government budgets do not match the rising demand for care services.
  • Being able pay for your care affords you choice in terms of what care you receive, when you start receiving it, and where you choose to receive it.

Arrange a chargeable 1-Hour Consultation with an expert care adviser

If you have specific questions, a problem that needs fixing, or would simply like to ensure you are on the ‘front foot’ with your care planning to ensure you receive the care that’s needed and deserved, you might feel you need some tailored help and support.  That’s why we offer our personalised 1:1 telephone/online guidance sessions, where we take the time to get to know every single one of our clients and provide a personalised plan of action. Arrange yours today.