The cost of dementia care at home

Dementia care costs

Over 900,000 people currently live with dementia in the UK, and this number is predicted to rise to 1.6 million by 2040, so it is important to understand what dementia care is and how much this could cost families. Here, we are looking at why dementia care costs are unique when compared to other types of care, the key factors that impact the cost, funding options for dementia care in the UK and other ways to manage this, how dementia care at home differs from other options, and how home care could provide the care families need. At Home Instead, our aim is to help people age positively and in place by bringing expert care to their home. For nearly 20 years, we have been providing the highest standard of care, and creating industry-leading training programmes for our Care Professionals that are accredited by nursing and medical professionals. Today, we are the world’s largest global domiciliary care network, supporting over 100,000 older adults with personalised, tailored care at home. So whatever questions you have about the cost of dementia care, we can help.

What are the key factors that affect dementia care costs? 

Every person with dementia will have slightly different needs, and the best dementia care is tailored to the individual’s abilities and preferences, rather than being a one-size-fits-all model. Some of the factors that influence cost include:  

Care Setting  

The setting in which care takes place has a significant impact on the cost of dementia care. The options are usually home care, a residential care home or a nursing home, and each has its benefits which you can read about in our guide: The Benefits of Home Care vs a Care HomeIn the case of a care home or nursing home, these are estimated to cost on average £800 to £1,078 per week depending on where you live in the country, according to Age UK. For those with moderate to severe dementia, this can be a good option as it offers constant care and supervision, as well as specialist nursing care in some facilities that can help to manage challenging behaviours and complex medical needs. While there are benefits to moving someone with dementia into a care home or nursing home (you can read more about this in our guide to live-in care vs nursing and care homes), home care is often considered the best option for those with dementia for several reasons:

• Flexibility – Home care enables clients to pay only for the care they need instead of full-time care straight away if they are in the early stages of dementia and do not require constant supervision. 
• Quality of life – Researchfinds that dementia patients may experience higher activity levels, quality of life, and feel more socially connected in their own home than in a care home. 
• Familiarity – Studies suggest that for a person with dementia, being in an unfamiliar setting with strangers (such as in a care home) can lead to feelings of stress, confusion and anxiety. 
• Cognitive health – One study found that after one month of home care, participants were less likely to develop acute confusion than those in care homes. 
• Personalisation – Generally, home care tends to mean older people receive a highly personalised care plan that makes them as comfortable as possible with one-to-one attention and less disruption to their routines.
• Connection – Home care enables more involvement and visits from family, friends and members of their community.

Live-in care is another great option that helps to keep an older person with dementia in their own, familiar environment, while also ensuring they have the constant care they need. Live-in care costs vary greatly depending on level of care, location and the specific provider, but as a rough guide, live-in care through an agency could range from £1,350 to £2,000 per week in the UK. You can learn more in our guide to how much a live-in carer costs.

Care Level  

Depending on the type of dementia, care may involve activities like:

• Assisting a person to wash and dress (personal care)
• Reminders to eat regular meals and help with cooking 
• Medication management
• Help with housework and looking after pets when this becomes too challenging
• Mobility support if and when necessary 
• Regular health checkups, and coordinating other healthcare professionals
• Organising cognitive and physical activities to help maintain mental stimulation
• Emotional support for clients and their families as the condition progresses 

The total cost of dementia encompasses healthcare costs, social care costs, and potential economic losses. The level of care will also be a major factor affecting how much dementia care costs, since different stages of dementia often have increased needs. For example:

• In the early stages of dementia, an older person may need minimal support such as medication reminders, companionship, and basic personal care or mobility support. At this stage, occasional visiting care may be sufficient. The annual cost of mild dementia is thought to be £28,700 per person.
• In the middle stages of dementia, care needs may increase to the point where a person with dementia requires more consistent help to manage behavioural changes, confusion, and reduced mobility. They may need intensive support with daily activities like bathing and eating, and costs usually increase to cover extra help from specially-trained caregivers who understand complex communication needs.
• In the late stages of dementia, full-time care may be required if the person’s behaviours are particularly challenging. Individuals in this stage could become non-verbal, experience stressful sundowning, or be confined to bed, all of which may require constant supervision and specialist care such as feeding support or pressure sore management. For this reason, late stage dementia care is often the most expensive; annual costs of severe dementia are thought to be £80,500 per person. You can learn more about this stage in our guide to advanced dementia.
• When end-of-life care is needed, costs may increase further. According to the charity Marie Curie, the estimated daily cost of palliative care in hospitals is thought to be £425, while end-of-life community care is around £145, so this could be a more affordable option. Average hourly home care rates are also thought to start at £20ph, so for those who need end-of-life care, live-in palliative care may be more practical.

Location Variations  

It is important to also consider your location when researching the cost of dementia care, as rates vary depending on where you live in the country. For example, in cities and more urban areas, dementia care is more accessible, but could cost more due to a higher cost of living and associated higher wages. On the other hand, dementia care in more rural areas may be more affordable due to a generally lower cost of living. Regional differences also affect the cost of dementia care. For example, cities like London in the south cost much more than suburban areas in Scotland, due to the cost of living in those areas, available staff, and location demand.You can find more information on the cost of care in different regions of the UK below:

• Cost of care in England
• Cost of care in Scotland
• Cost of care in Wales
• Cost of care in Northern Ireland

As a brief overview, there are several ways you could pay for home care, or have it paid on your behalf, depending on where you live and your individual circumstances. 

1. Fully-funded care – Those who qualify for means-tested support after a Care Needs Assessment can use this for either home care if they wish to stay in their own residence, or to pay for care home or nursing home fees. NHS Continuing Healthcare can also offer fully funded care for those who require ongoing healthcare outside of hospital due to disability, an accident or a major illness, but this is very difficult to qualify for due to the strict criteria.
2. Partially-funded care – If the Care Needs Assessment determines you are entitled to partial funding, you may be able to use benefits such as Attendance Allowance or Personal Independence Payments (PIP) to cover some of the additional fees. Some benefits can help with general living costs and therefore make it easier to spend on dementia care, such as Universal Credit, Pension Credit, Winter Fuel Payments and more. Older adults in the UK may also be entitled to free prescriptions, free vision testing and glasses, and subsidised hospital travel costs, all of which could help to save money in other areas in order to lessen the financial burden of dementia care. 
3. Self-funded care – The Alzheimer’s Society estimates that almost half of older people fully fund their own care home place or nursing home place, and self-funded home care often relies on things like savings, investments, pensions, property, equity release and more.

You can learn more about paying for care and funding in each UK country here, or if you need more guidance on the best option for you, reach out to an accredited financial adviser from the Society of Later Life Advisers (SOLLA) who can steer you in the right direction.Also, speak to your GP if you have been diagnosed with dementia or are caring for someone with this condition, as they may be able to advise on other resources that can help with the financial strain of dementia care. In addition, certain charities such as Dementia UK, Alzheimer’s Society and Age UK offer resources, assistance and advice for dementia patients on how to cover the cost of care. If you have urgent questions about this, you may find it helpful to call Alzheimer’s Society’s helpline for anyone affected by dementia on 0333 150 3456.

How can families make dementia care costs easier? 

Managing dementia care costs can be a challenge for many older people and their families, but there are ways to address the financial burden of care and utilise the support available to you. Here are some tips for making dementia costs easier: 

• Plan ahead – As soon as an older relative is diagnosed with early-stage dementia, it is important to begin planning for their future care immediately, especially if they have rapid onset dementia. You can learn more in our guide to making an Advance Statement for care.
• Get legal advice – Set up a Power of Attorney document to protect your older loved one’s health decisions and finances, and make sure that the appropriate person is trusted with their treasured belongings and savings. This can avoid instances where families are blocked from making decisions for their loved one. You can learn more in our guide to getting Power Of Attorney for an elderly parent with dementia.
• Combine care types – Combining informal, familial care with necessary professional support can make costs easier. For example, if possible, have a professional caregiver provide visiting care for their morning and evening personal care routine and medical care, and enlist the help of a trusted family member to provide companionship and monitoring throughout the day. This ensures they receive the specialist care they need but also relies on families to provide basic care during hours when professional care may not be necessary.
• Check eligible benefits – Always check which benefits you may be eligible for, such as Carer’s Allowance, to make monthly budgeting easier.  
• Make use of local services – Things like adult day centres or respite care can make long-term informal caregiving more sustainable for families, so don’t get trapped by carer’s burnout – research what is available in your area to help. 
• Consider home care – Specialist dementia care from experienced home care providers like Home Instead can provide tailored support at home throughout all stages of dementia, and avoid an older loved one being placed in a care home if they do not want this. 

At Home Instead, we understand the unique needs of people living with dementia and how those needs differ significantly from standard care. We can create a bespoke, flexible package that makes costs transparent with no hidden fees. For example, one of our clients with mid-stage dementia required a package of specialist care for 14 hours per week, which cost them £490 per week. If you are curious to know what a package of personalised dementia care might cost you, reach out to our friendly team to discuss your needs, and organise a free, no-obligation assessment for your loved one. Our experienced, supportive Care Professionals provide the help needed to manage the progressive and unique care needs of an older person with dementia in the comfort of their own home, where they feel safe. Whether you think you need  24-hour home care or just occasional respite, our specialist home dementia care can be tailored to your needs, incorporating everything from daily personal care to mental engagement. We’re an award-winning home care provider and part of a worldwide organisation devoted to providing the highest-quality relationship-led care for older people in their own homes. Arranging care for yourself or your loved one shouldn’t be stressful, so whatever questions you would like answered, feel free to reach out to the Home Instead team to discuss your needs.