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Paying for Care: An Overview
Deciding that a loved one needs to receive dementia care can be a hard decision that is made even harder due to the uncertainties surrounding dementia care home costs. Who pays for dementia care depends upon the finances of the person living with dementia as well as the level of care they might require.
If funds are available to pay for their own care, people with dementia will be expected to pay for their care home fees themselves. If they don't have sufficient funds, then there is support available. It may also be possible to split the cost of dementia care homes between them and the local authority if you choose for your loved one to live in a care home that has higher fees than the local authority alone can cover.
How Much Does Dementia Care Cost?
In the UK, depending on your circumstances, dementia care home costs often range between £1,000 and £3,000 per week. For many, this is beyond their means, and government support won't cover fees of anything close to the upper figure. But, if they qualify for funding, your loved one will still receive a budget that entitles them to receive care in some capacity.
Residential Dementia Care Costs vs Nursing Dementia Care Costs
The type of care your loved one needs will significantly impact how much you can expect to pay:
- Residential dementia care costs typically start from around £1,000 per week. This covers accommodation, meals, and support with daily activities.
- Nursing dementia care costs are generally higher, starting from around £1,200 per week, as they include 24-hour nursing care from qualified professionals.
Bear in mind that some luxury care homes can charge well above the average cost of dementia care stated above. The home costs across the UK also vary significantly by region, with care home fees in England typically being higher in the South East and London compared to other areas.
Hidden Costs of Dementia Care Homes
When researching dementia care home fees, it's important to ask care home providers about any additional costs on top of the overall care fees. These might include:
- Extra charges for specialist dementia care
- Entertainment and activities at the care home
- Personal care items
- Hairdressing or other services
- Top-up fees for enhanced amenities
Make sure you find out the full cost and ensure you ask the care home providers you are talking to about any hidden fees beyond the average weekly cost.
Will the Council Help Pay for Dementia Care Home Fees?
When the time comes for someone with dementia to receive additional care, you first should speak to your local authority to understand the exact level of care they need. This is done by undertaking a care needs assessment, whereby a council professional, such as an adult social worker, will visit your loved one to assess them and determine the level of care they may need.
It is relatively simple to organise a needs assessment, which you can do via the government's website by entering your postcode to start the process.
During the assessment, the social worker will speak to you about how you might pay for care home fees for dementia, and if need be, they will arrange for you to have a financial assessment known as a means test. This is the part of the process when it will be determined how much financial support your loved one might qualify for based on the level of care they might need. They will then be assigned a budget. As highlighted above, this budget will be enough to ensure your loved one can receive care in at least one care home that offers the level of support they need.
What Happens if the Chosen Care Home Costs More Than the Council Budget?
If you find a care home that better suits your loved one's needs but costs more than the council's allocated budget, you can arrange to pay a 'top-up fee'. This is the difference between what the council will pay and the cost of the care home you prefer. However, it's important to note that:
- The top-up fee must be affordable long-term
- The person paying the top-up fee must sign an agreement with the care home
- You should make formal arrangements with the care home regarding how these payments will be made
Does Your Level of Finance Impact What You Have to Pay?
To determine the level of financial support your loved one will receive, the council will undertake a means test. During this process, the council will assess their assets to work out whether or not they are in a position to pay for their own care. However, if they own their home this will not be included if their partner or another relative still lives there.
As of 2023, if your loved one has assets that are worth more than £23,250 then they will be expected to pay for their care fees in full. If their assets total less than £23,250, then they are likely to qualify for financial support.
Self-Funding Dementia Care
If your loved one is paying for their own care (self-funding), understanding the cost of care homes in the UK will help you plan accordingly. When considering care homes, ask for a detailed breakdown of:
- The basic cost of a care home place
- Additional charges for specialist dementia care
- Any expected annual increases in fees
- What happens if funds run low
Will the NHS Pay for Dementia Care?
People living with dementia are often assessed as having social care needs rather than health care needs, which means they usually don't qualify for full NHS funding. However, there are two main types of NHS funding that might be available:
NHS Continuing Healthcare
If your loved one's needs are primarily health-related, they might be eligible for NHS Continuing Healthcare. This is a package of care arranged and funded by the NHS for individuals with complex, ongoing healthcare needs. If eligible for NHS Continuing Healthcare, the NHS will pay for all the care, including accommodation costs in a care home.
NHS-Funded Nursing Care
If your loved one needs to move into a nursing home that provides nursing care, but they don't qualify for NHS Continuing Healthcare, they might still be eligible for NHS-funded nursing care. This is a contribution paid directly to the nursing home to cover the nursing care component of your fees, currently around £200 per week.
Exploring Financial Support for Self-Funders in Dementia Care
Depending on the circumstances of your loved one, they may be entitled to receive financial support through other means. Speak to your local authority to see whether or not your loved one would qualify for:
- Attendance Allowance: This benefit provides extra financial support to help with personal care for those over 65 who have a physical or mental disability, including dementia.
- Personal Independence Payment (PIP): Available for individuals under 65, PIP offers financial aid for those living with long-term disabilities or health conditions like dementia.
- Housing Benefits: Depending on income and assets, your loved one may qualify for housing-related benefits to support accommodation costs.
- Pension Credit: For those over the State Pension age, Pension Credit offers a supplement to weekly income, potentially easing other expenses.
For those looking to enhance the quality of care through additional services, some providers offer top-up funds for self-funders. This option allows families to tailor care to specific needs and preferences.
To better understand the available funding routes and explore financial support, read our comprehensive guide on funding for dementia care fees.
Alternatives to Care Homes
Before deciding on a care home, it's worth exploring all available options:
Live-in Care
For some people with dementia, live-in care at home might be preferable and, in some cases, more cost-effective than moving into a care home. This involves a professional carer living in your loved one's home to provide round-the-clock support.
Respite Care
If you're caring for someone with dementia at home, respite care offers temporary relief. Many care homes offer short-term stays, allowing family carers to take a break while ensuring their loved one receives proper care.
When Should Someone Living with Dementia Move into a Care Home?
Knowing when the time is right for your loved one to move into a care home can be challenging. Some signs that might indicate it's time to consider this option include:
- Increasing safety concerns at home
- Deteriorating physical health
- Significant changes in behaviour
- Caregiver stress and burnout
- Increasing care needs that can't be met at home
For more guidance on this difficult decision, see our article on "When should someone with dementia go into a care home?"
How to Find a Care Home for Someone with Dementia
When looking for a suitable care home for someone living with dementia, consider the following:
- Specialist dementia care: Ensure the home has staff trained specifically in dementia care
- Location: Choose somewhere accessible for family and friends to visit
- Care Quality Commission (CQC) ratings: Check the home's official quality ratings
- Environment: Look for dementia-friendly design features
- Activities: Ensure there are appropriate and engaging activities for residents
- Staff-to-resident ratio: Higher ratios generally mean more personalised care
Your local authority can provide a list of care homes in your area, or you can use our home finder service at Ashberry Care Homes.
Preparing for the Move to a Care Home
Once you've chosen a care home, preparation is key to helping your loved one adjust:
- Visit the care home together several times before the move
- Bring familiar items from home to personalise their space
- Create a life story book to help staff understand your loved one's history and preferences
- Plan the moving day carefully to minimise stress
- Be prepared for an adjustment period
For more detailed advice, read our guide on "How to prepare someone living with dementia for moving into a care home".
Enquire Today About Dementia Care
If you and your loved one need a break, our Dementia care team at Ashberry Care Homes is here to help. Drop us a message today for more information or to book a visit.
Frequently Asked Questions About Dementia Care Home Costs
How much are dementia care home costs compared to home care?
The cost of residential dementia care versus home care varies significantly based on individual needs. Home care for people living with dementia typically costs between £20-30 per hour, meaning that 24-hour home care can actually exceed the cost of a care home in many cases. However, for those needing only a few hours of support daily, home care may be more economical. When comparing care in a nursing home to care at home, consider not just the hourly rates but also additional costs like home modifications, meals, utilities, and emergency response systems. The integrated care board in your area may provide guidance on which option offers better value based on your loved one's specific care needs.
If my loved one has dementia and needs to move to a different care home, will the fees change?
When someone with dementia needs to move to a different care home, you should expect potential changes in dementia care home fees. The costs will depend on several factors:
- The new home's fee structure and location (home costs across the UK vary significantly)
- Whether they're moving from residential care to a nursing home (which typically costs more)
- Whether they require more specialist dementia care in the new setting
- Any changes in their eligibility for funding
If your loved one qualifies for NHS-funded nursing care in their new placement, this contribution would be paid directly to the nursing home on top of overall care fees. Always check with both care homes and your local authority about managing the transition of payments and any notice periods required by the original care home.
How much do residential or nursing home fees for dementia care increase each year?
Dementia care in the UK typically sees annual fee increases that outpace inflation. Care home fees for dementia tend to rise by 5-10% per year on average, though this varies widely depending on:
- Location (care home fees in England, particularly in London and the South East, often increase faster)
- Type of care provider (corporate chains versus independent homes)
- Local market conditions and demand
- Changes in regulatory requirements
Understanding how much you need to contribute now and how this might change over time is crucial when planning for long-term care. Many families find that their savings deplete faster than anticipated due to these annual increases. Ask prospective care homes about their fee increase history and policy before making arrangements with the care home.
What happens if we run out of money for paying for a care home?
If you're currently self-funding but anticipate that your loved one's assets may eventually fall below the £23,250 threshold, it's important to contact social care services before reaching this point. When paying care becomes difficult:
- The local authority will reassess your loved one's financial situation
- They may take over some or all of the care home fee payments
- However, if the current care home costs more than the local authority is willing to pay, you might need to:
- Continue paying a top-up fee
- Move to a care home that accepts the local authority rate
- Negotiate with the current home to accept the local authority rate
People with dementia are often particularly sensitive to changes in the environment, so planning ahead and understanding much you need to contribute long-term is essential. Costs will help you plan more effectively if you speak to financial advisors who specialise in care funding options.
Need a Hand Finding the Right Care Home?
At Ashberry Care Homes, we look after your loved ones with care focused on dignity, sensitivity and independence.
We understand the concerns that people have when choosing a care home either for themselves or for a loved one. In our care, residents and their families are at the heart of everything we do and are always treated with respect and consideration.
