Understanding Palliative Care Costs and Funding

If your family is facing the prospect of palliative or end-of-life care, uncertainty about costs is the last thing you need. This guide explains what palliative care involves, what you are likely to pay, and where financial support may be available, including the latest funding rates for 2025/2026.

What is palliative care?

Palliative care is specialist support for people living with a serious, life-limiting condition. The focus is on quality of life rather than curing, managing pain, providing comfort, and supporting the whole person and their family through a difficult time.

Palliative care can be provided at home, in a hospice, hospital, or a care home. Many families find that a care home offering dedicated palliative support provides the right combination of round-the-clock professional care and a warm, homelike environment.

It is worth understanding the distinction between palliative care and end-of-life care. Palliative care can begin at any stage of a serious illness, while end-of-life care typically refers to the support provided in the final weeks or days of life. The two often overlap, and a good care team will provide both, seamlessly.

What does palliative care in a care home cost?

Costs vary depending on the care home, the level of support required, and whether the placement is privately funded or supported by the NHS or local authority.

For privately funded residents in England, care home fees typically range from around £1,200 to over £2,000 per week, depending on the setting and the complexity of care needs.

At Lavender Fields, our fees are all-inclusive and do not increase as care needs change. This is an important reassurance for families: regardless of how a loved one's condition progresses, the fee remains stable, reviewed only annually in line with inflation and sector costs. Full details are available on our pricing and what's included page.

Who funds palliative care? The main options explained

Funding for palliative care can come from several sources, and many families are eligible for support they are not aware of.

NHS Continuing Healthcare (CHC)

NHS Continuing Healthcare is a package of ongoing care funded entirely by the NHS for people whose primary need is a health need, rather than a social care one. If your loved one qualifies, the NHS meets the full cost of their care, including accommodation regardless of income or savings. It is not means-tested.

Eligibility is assessed through a structured process using the NHS Decision Support Tool, which looks at 12 areas of care need including behaviour, cognition, communication, and medication requirements. The criteria are strict, but it is worth ensuring a formal assessment takes place.

An organisation called Beacon offers up to 90 minutes of free, independent advice on CHC and can be contacted on 0345 548 0300. You can also ask your GP, social worker, or hospital discharge team to initiate an assessment on your behalf.

NHS Funded Nursing Care (FNC)

If a person does not qualify for full CHC but is living in a nursing care home and has assessed nursing needs, they may be eligible for NHS Funded Nursing Care. This is a flat-rate NHS contribution paid directly to the care home on the resident's behalf.

In  April 2025, the standard FNC rate in England increased to £254.06 per week. From 1 April 2026, it rose further to £267.68 per week, a 5.4% increase announced by the Department of Health and Social Care in March 2026.

FNC does not cover the full cost of care, but it reduces the amount the family pays. Ask the care home whether their quoted fees are inclusive of FNC or whether it is deducted separately.

Local authority funding

Where a person's savings and assets fall below the upper capital limit, currently £23,250 in England for 2026/2027 by the GOV.UK local authority circular,  the local authority may contribute to care costs following a means-tested financial assessment.

It is worth noting that local authority funding rates are typically set below the fees charged by premium care providers. This may mean a top-up contribution is required even where local authority support is in place.

The planned £86,000 cap on lifetime care costs that had been proposed by the previous government was cancelled by the Labour government in July 2024. Capital limits therefore remain at their current levels for the foreseeable future.

Fast-track CHC for end-of-life care

Where a person is approaching the end of their life and has an urgent, rapidly deteriorating care need, a fast-track CHC assessment can be requested. This process is significantly faster than a standard CHC assessment, and can result in full NHS funding being put in place within 48 hours.

If your loved one is near the end of their life and you are concerned about funding, ask the clinical team involved in their care whether a fast-track referral is appropriate. This is a route that families are often not made aware of until it is raised directly.

Does a care home's palliative care fee cover everything?

This depends on the care home. In many settings, fees are structured separately for accommodation, personal care, and nursing or clinical care. Additional charges for therapies, specialist equipment, or other services may also apply.

At Lavender Fields, our approach is transparent. Our fees are all-inclusive, covering care, accommodation, food, and full access to the village's facilities. Families should not face unexpected bills at an already difficult time.

Planning ahead: what families can do now

Where possible, starting conversations about funding and care options before a crisis makes a real difference. It allows families to understand their financial position, explore all funding routes, and choose a care home based on quality rather than urgency.

Practical steps include reviewing the person's savings and assets, seeking advice from an independent financial adviser with later life expertise, and contacting the relevant NHS CHC team. When looking for a financial adviser, seek someone registered with theSociety of Later Life Advisers (SOLLA), whose members specialise in later life funding decisions including care costs.

Ourcare journey page gives a broader overview of how we support families at every stage, from first enquiry through to long-term and end-of-life care.

Compassionate care at Lavender Fields

At Provence House, ourcompassionate and palliative care is built around dignity, comfort, and the individual. We believe that end-of-life care should feel like care, not a process — and that families should feel supported, informed, and never alone in what they are facing.

Our team is available to talk through your situation, explain our approach, and answer any questions about funding or fees, with no pressure and no obligation.

Frequently asked questions about palliative care funding

Can the NHS fund palliative care in a private care home? Yes, if the person qualifies for NHS Continuing Healthcare. CHC funding follows the individual and can be used in any registered care setting, including private care homes.

What is the current NHS Funded Nursing Care rate? The standard rate is £254.06 per week for 2025/2026, rising to £267.68 from 1 April 2026. This is paid directly to the care home by the NHS.

What assets are included in a local authority financial assessment? The assessment typically includes savings, investments, and property (unless certain exemptions apply, such as a spouse or dependent still living in the property). The upper capital limit is currently £23,250 in England.

Can a person receive palliative care in a care home rather than a hospice? Yes. Many people prefer the environment of a care home to a hospice, particularly if they have already built relationships with the care team or are moving from residential care into end-of-life care within the same setting. The quality of palliative care in a good care home is comparable to that of a hospice.

We are struggling to fund care right now. Who can help? Contact your loved one's GP or hospital team about a CHC assessment, or request a Carer's Assessment and needs assessment from your local authority. For independent guidance, Beacon (0345 548 0300) offers free CHC advice, and SOLLA-registered advisers can help with financial planning for care costs.

Talk to us

If you are trying to understand your options for palliative or end-of-life care near York or Pocklington, we would be glad to have an honest, unhurried conversation.Contact the team at Lavender Fields orfind out more about what is included in our fees.