Does the NHS Pay for Care Home Fees?
Many families assume that care home costs are entirely their own responsibility from the start. That is not always true. There are several routes through which the NHS contributes to, or in some cases fully covers, the cost of care. This guide explains each one clearly, who qualifies, and how to go about requesting an assessment.
What NHS funding is available to help with care home costs?
There are three main routes through which the NHS can contribute to care home fees. They are different in scope, eligibility, and how much they cover.
NHS Continuing Healthcare (CHC) covers the full cost of care, including accommodation, for people whose primary need is health-based. It is means-tested in the opposite of the way local authority funding works: it does not matter how much money you have. If you qualify, the NHS pays everything.
NHS-Funded Nursing Care (FNC) is a contribution the NHS makes towards nursing costs for people living in a registered nursing home who do not qualify for full CHC. It is paid directly to the home.
NHS Discharge Funding provides a short period of fully funded care following a hospital admission, designed to allow time for recovery and longer-term planning.
What is NHS Continuing Healthcare, and who qualifies?
NHS Continuing Healthcare (CHC) is a package of care arranged and funded entirely by the NHS for adults, whose primary care need is a health need rather than a social one. If someone qualifies, the NHS pays the full cost of their care including care home fees, accommodation, and all personal care. There is no means test.
Eligibility is based entirely on the nature, complexity, intensity, and unpredictability of someone's health needs. It does not depend on a specific diagnosis. Someone living with dementia, for example, may or may not qualify, depending on the severity and nature of their needs at the time of assessment.
The process works in two stages. First, a healthcare professional completes a Checklist Tool to determine whether a full assessment is warranted. If it is, a multidisciplinary team carries out a full assessment using the Decision Support Tool. A decision should be given within 28 days of the full assessment.
If someone is terminally ill or deteriorating rapidly, a Fast Track assessment is available, which bypasses the standard process.
How likely is it to be awarded NHS Continuing Healthcare?
It is genuinely difficult to qualify for CHC, and families should not assume eligibility just because a loved one has complex needs. In the 2024-2025 financial year, around 80% of full assessment applications in England were rejected.
That said, it is always worth requesting an assessment, particularly if someone has needs that are complex, unpredictable, or high in clinical intensity. Needs can change, and a person who does not qualify at one point may qualify later, if their condition deteriorates.
If you believe a decision has been made incorrectly, there is a formal appeals process. Independent support is available from Beacon CHC, which offers up to 90 minutes of free personalised advice. They can be reached via beaconchc.co.uk or on 0345 548 0300.
What is NHS-Funded Nursing Care, and does it apply at Lavender Fields?
NHS-Funded Nursing Care (FNC) is a contribution the NHS pays directly to a registered nursing home to cover part of the cost of nursing care provided by qualified nurses. It does not depend on financial means. If someone has been assessed as needing nursing care in a registered nursing home, they should receive it automatically.
From April 2026, the standard weekly FNC rate is £267.68. There is also a higher rate of £368.24 per week, which applies only to a small number of people who were receiving it before 2007 under a legacy arrangement.
FNC is paid directly to the care home and will usually appear as a reduction on the invoice a family receives. It is worth checking with any nursing home you are considering whether this is already factored into the quoted fee, or shown as a separate line.
What about funding after leaving hospital?
If someone has been in hospital and is being discharged, they may be entitled to a short period of fully funded care through NHS discharge funding. This is designed to allow time for recovery and for longer-term care plans to be made properly, rather than under pressure.
This funding is time-limited, typically up to six weeks for those with ongoing health needs. It is separate from CHC and does not guarantee ongoing NHS-funded care once the period ends.
If your family is navigating a hospital discharge, our guide to what to do when a loved one needs care after hospital discharge explains the process clearly and can help you ask the right questions at the right time.
What if someone does not qualify for NHS funding? The local authority means test
If NHS funding is not available, the local authority may contribute to care costs depending on a person's financial situation. A financial assessment will look at savings, income, and in most cases, property.
The key thresholds in England for 2025-26 are:
Above £23,250 in assets: you are expected to pay the full cost of care yourself (self-funding)
Between £14,250 and £23,250: you contribute on a sliding scale, with £1 per week assumed for every £250 of assets above the lower threshold
Below £14,250: your assets are disregarded and the council contributes towards your care costs
Note that your home is typically included in the financial assessment unless a spouse, civil partner, or dependent relative continues to live there. If your property is included but you do not want to sell it immediately, a Deferred Payment Agreement allows the council to fund care costs with the property used as security, repaid when the property is eventually sold.
Does a local authority funded place mean a choice of care home?
Not in the same way. If the local authority is funding care, they will pay a set rate and offer placements at homes that accept it. That rate is typically lower than what premium care homes charge private payers.
You can choose a home that charges more than the council rate, but a family member or third party must agree to pay a top-up to cover the difference. That top-up cannot legally come from the resident's own assessed income, and the person agreeing to pay it should be confident they can sustain it long-term. Care home stays can last for several years, and a top-up of even £200 per week adds up to over £10,000 per year.
Should we get independent financial advice?
For most families, yes. The rules around care funding are complex, they change, and the financial consequences of not understanding them can be significant. An independent financial adviser who specialises in later life planning can help you:
understand what funding routes your family may be eligible for
plan how assets could be structured to cover care costs sustainably
avoid decisions that could be treated as deprivation of assets by the local authority
The Society of Later Life Advisers (SOLLA) maintains an accredited directory at solla.org.uk. Advisers listed there have specific expertise in care funding and are independently accredited.
What does this mean for families considering Lavender Fields?
Lavender Fields is a fully private-pay care village. Local authority-funded placements are not available at Provence House. Families who are self-funding, or who may qualify for NHS Continuing Healthcare, are the primary audience for our care.
If there is any possibility that NHS Continuing Healthcare may apply, it is always worth requesting an assessment before making any arrangements. The assessment can be requested by a GP, social worker, or another healthcare professional involved in your loved one's care.
For families who are privately funding care, the no-increase guarantee at Lavender Fields provides meaningful long-term certainty: fees adjust annually for inflation and sector costs, but never because a resident's needs change. You can review what is included in full on our pricing page, or explore more about the care journey at Lavender Fields.
Frequently asked questions
Can the NHS ever fully pay for a care home place? Yes. If someone is assessed as eligible for NHS Continuing Healthcare, the NHS funds the full cost of their care, including accommodation. This applies regardless of how much money the person has.
What is the NHS-Funded Nursing Care rate in 2026? From April 2026, the standard weekly NHS-Funded Nursing Care rate is £267.68. This is paid directly to the nursing home and covers part of the cost of nursing care from a qualified registered nurse.
How do I request an NHS Continuing Healthcare assessment? Ask a GP, district nurse, social worker, or any healthcare professional involved in your loved one's care. You can also contact your local NHS Integrated Care Board (ICB) directly. The hospital discharge team can also initiate the process if your loved one is in hospital.
What happens if we disagree with the CHC eligibility decision? You have the right to appeal. The process starts with a local resolution request to the ICB. If that is unsuccessful, you can request an independent review from NHS England. Beacon CHC provides free independent advice and support throughout the process.
Does having savings affect whether someone qualifies for NHS Continuing Healthcare? No. NHS Continuing Healthcare is not means-tested. Eligibility is based entirely on assessed health needs, regardless of the person's financial situation.
We have been told our relative does not qualify. Should we accept that? Not necessarily, particularly if their condition has changed since the last assessment. Needs are reassessed when circumstances change, and many successful CHC awards come after an initial rejection. Independent support from Beacon CHC is free and well worth accessing if you are unsure.
Understanding what you may be entitled to is an important part of planning for care. If you would like to speak to the team at Lavender Fields about funding, fees, or what care at Provence House involves, get in touch or start your enquiry here.