Planning for long-term care is something many people put off, yet it can become an important part of later-life financial planning. The cost of care, the rules around state support, and the different ways to fund it can all feel complicated.

Here are some of the most common questions people ask about long-term care funding in the UK, with clear and simple answers to help you understand the basics.

How much does long-term care cost?

Care costs vary depending on the level of support required and where you live.

Broadly speaking, residential care homes in the UK can cost around £1,076 – £1,710 per week, while nursing care can range from approximately £1,225 – £1,871 per week or more, depending on location and level of care required. Home care services can also be expensive, particularly when a high number of care hours or live-in support is needed.

Because care needs and locations vary, it’s important to plan for the possibility that costs could change over time.

Will the state pay for my care?

In many cases, people are responsible for funding their own care initially.

In England, local authorities typically only begin to contribute once your assets fall below around £23,250. This includes savings and investments, and sometimes the value of your property.

Before support is offered, the local authority will carry out a financial assessment and a care needs assessment.

However, each case is different, and some people may qualify for additional support depending on their circumstances.

Will I have to sell my house?

Not always.

Your property may be included when calculating your assets if you move permanently into residential care. However, there are situations where the property is not counted, such as when:

- A spouse or partner still lives there

- Certain dependants continue living in the property

There are also alternatives such as deferred payment schemes, where the local authority helps cover costs and recovers them later, often when the property is sold.

Some people also choose to rent out their property or explore other financial options.

How can I pay for care without running out of money?

People fund care in different ways, often using a combination of resources such as:

- Pension income

- Savings and investments

- Property assets

- Immediate needs annuities designed to cover care costs

Planning ahead can help create a strategy that balances maintaining quality care while preserving financial security.

A financial adviser can help you understand what options may be suitable based on your overall financial situation.

Can I protect my estate or inheritance?

Many people worry that care fees will significantly reduce the inheritance they leave behind.

While there may be ways to structure finances more efficiently, it’s important to understand that giving away assets purely to avoid care fees can be challenged by local authorities under deprivation of assets rules.

Good planning focuses on balancing care needs, personal financial security, and family considerations.

Professional advice can help you navigate these rules carefully.

Are there benefits or support schemes available?

Some financial support is available, depending on your health and circumstances.

Examples include:

- Attendance Allowance – for people over State Pension age needing help with personal care

- NHS Continuing Healthcare – fully funded care for those with significant health needs

- NHS-funded Nursing Care – support for nursing costs in care homes

Some of these benefits are not means-tested, meaning eligibility may depend on care needs rather than financial resources.

What happens if care needs change?

Care needs often evolve over time.

Someone might start with home care, then later move into residential care if their needs increase. Costs can also rise if medical or nursing support becomes necessary.

Because of this uncertainty, flexible financial planning is important. Regular reviews of finances and care arrangements can help ensure plans remain appropriate.

Should I plan now or wait until care is needed?

Many people only think about care funding when a crisis occurs, but planning earlier can give you more options.

Thinking about care as part of your retirement planning can help you:

- Understand potential costs

- Explore funding options

- Put plans in place before decisions become urgent

Even a simple discussion can make a significant difference later.

The importance of personal advice

While these answers provide a general overview, every individual’s financial situation, family circumstances, and health needs are different.

Rules around care funding can also change over time, and the best approach will depend on your personal goals and resources.

If you are unsure about how long-term care might affect your finances, it is often helpful to speak with a qualified financial adviser who can review your situation and help you make informed decisions.

Planning ahead may help provide greater clarity, financial security, and peace of mind for you and your family. Email info@thepennygroup.co.uk or call 0207 061 2345 if you have any questions or should you wish to speak to one of our advisers.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

The Penny Group Ltd is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 16/03/2026

References

PayingForCare (2025) How much does care cost? Available at: https://www.payingforcare.org/how-much-does-care-cost/ (Accessed: 5 March 2026).

Tier One Care (2025) Care home fees and costs in the UK. Available at: https://tieronecare.co.uk/planning-and-cost-of-care/care-home-fees/ (Accessed: 5 March 2026).

WTW (2025) Navigating long-term care costs in the UK: Funding options and strategies. Available at: https://www.wtwco.com/en-gb/insights/2025/05/navigating-long-term-care-costs-in-the-uk-funding-options-and-strategies (Accessed: 5 March 2026).”

William Humphries

Associate, Chartered Financial Planner at The Penny Group.

A guide to long-term care funding in the UK