Do People with Dementia Have to Pay for Care Homes? The Truth Behind the Fees

Have you ever wondered whether someone living with dementia has to pay for their care home? It’s one of the most common—and emotionally charged—questions families ask when faced with a dementia diagnosis. At Home Instead New Forest, we know that this journey can feel overwhelming. Understanding what support is available, when to seek it, and how to make informed financial decisions can make all the difference. This article breaks down the realities of dementia care costs in the UK and how families in the New Forest area can prepare.

Dementia care in a residential setting can be costly. On average, annual fees hover around £50,000. In more specialised or premium care homes, this figure can exceed £3,000 per week.

These costs typically cover accommodation, meals, and general care, but often exclude:

• Personal items (e.g. toiletries)

• Activities and excursions

• Hairdressing

• Specialist dementia therapies or nursing care

When budgeting for care, it’s important to factor in these extra expenses. Without planning, they can come as a shock.

For many people, the family home is their most valuable asset—and it’s often the biggest concern when it comes to care fees. Will it need to be sold? Not necessarily.

The value of a home may be included in the means test, unless:

• A spouse or civil partner lives there

• A relative aged 60 or over, or someone with a disability, lives there

In these cases, the home is usually excluded under what’s called the property disregard.

If the home is included and needs to be sold to pay for care, you can apply for a Deferred Payment Agreement. This allows the council to cover care home fees initially, and reclaim the costs when the house is sold later—usually after the person has died.

In some cases, the NHS may fund care—particularly when the person has complex or unpredictable medical needs. There are two key routes:

1. NHS Continuing Healthcare (CHC)

This is a full package of care, funded entirely by the NHS, for people with a primary health need. It is not based on diagnosis but on the nature of care required. CHC is not means-tested.

It can be hard to qualify, and many people are initially turned down. However, if you believe your loved one’s needs are severe, you can request a CHC assessment from your GP or care provider.

2. NHS-Funded Nursing Care

If someone is in a nursing home but doesn’t qualify for CHC, the NHS can still contribute a fixed weekly amount (around £254 in England) toward nursing costs.

If someone begins as a self-funder but their savings fall below £23,250, they may become eligible for council help.

However, be aware:

• The current care home may still be too expensive for council funding

• A top-up fee could be needed

• In some cases, the person may need to move to a more affordable home

Early planning can help avoid disruption. Talk to the care home and the council before funds are depleted.

If your loved one still has mental capacity, creating a Lasting Power of Attorney (LPA) for health and financial decisions is one of the most helpful steps you can take.

Without an LPA, families often face delays or complications when decisions need to be made about care or finances. The alternative may involve court applications that can take time and add stress.

Paying for dementia care is rarely simple. But families don’t have to face it alone. By learning about the financial assessment, NHS options, and care alternatives, you can make decisions with more confidence and less pressure.

At Home Instead New Forest, we provide not just care, but advice and local insight. Whether you’re planning ahead or need urgent support, we’re here to help you understand your options and protect your loved one’s wellbeing.

For more information about our dementia support services in Lymington, Totton, Lyndhurst and the wider New Forest area, please get in touch via homeinstead.co.uk/new-forest or call us directly.