Wealth
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.
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.
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.
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:
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.
People fund care in different ways, often using a combination of resources such as:
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.
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.
Some financial support is available, depending on your health and circumstances.
Examples include:
Some of these benefits are not means-tested, meaning eligibility may depend on care needs rather than financial resources.
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.
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:
Even a simple discussion can make a significant difference later.
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
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