Understanding dementia care home costs in the UK

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Important takeaways:

Dementia care home costs vary depending on where you live in the UK, and there are a few things you need to be aware of:

• Do dementia sufferers have to pay care home fees in the UK? Yes
• Funding available for care home fees for dementia
• Ways you can pay for the cost of dementia care

People living with dementia pay more for their care than those with other conditions, because dementia costs are often associated with care, rather than treatment. 

Care is not provided on the NHS, but through the social care system, which is why the cost of dementia care is so high in the UK. 

People living with dementia have to fund the complete cost of their care, unless they have assets of less than £23,250 (in England) – with many people facing the very real prospect of spending all of their assets on care, until they hit the requirement needed.

Dementia can often be complex and involve symptoms that need tailored support, meaning the cost of care homes for dementia are often at a premium. On average, the cost of dementia care is 15% higher than standard social care – with some being up to 40% more expensive.

The cost landscape of dementia care in the UK

Dementia care home costs vary depending on where you live in the UK, however, the average cost of specialist dementia care home costs in the UK is £1,037 per week and £4,494 per month.

The average cost of dementia care home fees is usually higher than residential and nursing homes, namely because people living with dementia with complex needs may require special equipment to support them, as well as 24/7 care.

Currently in the UK, the cost of dementia is £34.7bn a year, which works out as an average annual cost of £32,250 per person living with dementia. Two-thirds of the cost is paid by people living with dementia and their families whether through unpaid care or private social care. 

According to the Alzheimer’s Society: “The total cost of care for people living with dementia is typically £100,000, but can cost as much as £500,000.”

Dementia care costs in England

As is true with most care costs and fees, dementia care home costs will vary depending on where you live in England.

Here is a weekly cost breakdown for nursing dementia care costs in England:

• East Midlands: £1,175
• East of England: £1,380
• Greater London: £1,619
• North East England: £988
• North West England: £1,312
• South East England: £1,552
• South West England: £1,449
• West Midland:£1,229
• Yorkshire and the Humber: £1,292

And here is a weekly cost breakdown for residential dementia care costs in England:

• East Midlands:£1,039
• East of England: £1,229
• Greater London: £1,476
• North East England: £943
• North West England:£1,042
• South East England: £1,411
• South West England:£1,267
• West Midlands: £1,110
• Yorkshire and the Humber: £1,052

The average residential dementia care costs in England is £1,174 per week, but this will vary on a number of factors, including the costs for extra services or activities at the care home; some dementia care homes are all-inclusive while others charge extra for certain services.

If you need help with funding, a person living with dementia can ask for a financial assessment. The Care Act 2014 states that if a person is going to receive care and support at a low cost, it may not always be necessary to do a full financial assessment. In this case, the local authority may decide to do a ‘light-touch’ financial assessment.

Your local authority will compare the person’s capital and income to the capital limits (the LA funding threshold being £23,250). This will show how much the person with dementia will pay for their care. 

Dementia care costs in Scotland

Dementia care costs in Scotland will vary depending on where you live, but on average, you can expect to pay around £1,358 per week on residential dementia care costs or £1,410 per week on nursing dementia care costs.

Everyone aged 65 or over in Scotland – regardless of income and assets – receives free nursing and personal care support, up to a certain limit, if their local authority feels they need it following an assessment.

As of April 2024: 

• The free personal care amount is £248.70 a week
• The funded nursing care amount is £111.90 a week

About Dementia and Age Scotland’s Peer-to-Peer grants programme is a funding opportunity for people living with dementia and unpaid carers in Scotland, offering grants of between £500 to £10,000 to current or former unpaid carers, or individuals or groups of people living with dementia.

There is currently a plan for a Scottish national care service to be in place by 2026, which will likely reform things like care costs, dementia care home costs, funding and choice.

Dementia care home costs in Wales

If a person living with dementia needs to move into a residential dementia care home, their council will decide whether they must make a contribution towards the fees, making their decision based on their income, capital and savings.

In Wales, if you have more than £50,000 in savings or capital assets in Wales, then you will usually have to pay the care home fees in full. 

If you live in a care home that provides nursing care, the NHS should normally contribute towards the fees to cover the cost of the nursing element. The amount that can be paid may vary according to which health board you are in. 

Dementia care home costs in Northern Ireland

On average, the costs for care homes in Northern Ireland are £706 per week for a nursing care home and £551 per week for a residential care home – of course, some dementia care home costs will be more on average.

When looking at different homes, ask about their fees, and if anything comes at an additional cost.

Paying for dementia care

There are several types of funding available to help cover the costs of dementia care in the UK. These include:

1. Local authority funding is provided by your local authority and is means-tested, meaning your income and savings will be taken into account to determine the level of funding you receive. This can cover dementia care home fees or the costs of care at home, including live-in care, support with daily living and home adaptation
2. Personal funding where your loved and/or their family pay for the totality of their care
3. Personal budget funding is provided by the local authority, allowing individuals to manage their own care budget. You can choose how your funding is used, whether paying for respite care in a care home, or receiving care at home from a carer
4. NHS Continuing Healthcare (CHC) (not available in Scotland) is a fully-funded package of care provided and funded for people with complex, ongoing healthcare needs through their local integrated care board (ICB). This funding is available for those who are assessed as having a “primary healthcare need” and can cover the costs of nursing care, personal care and accommodation
5. If you need to move into a nursing home, and are not eligible for NHS Continuing Healthcare funding, the NHS may help with the costs of the nursing care component of your fees for your care home or dementia care home fees. NHS-funded nursing care (FNC) means the NHS contributes towards your fees by paying a flat rate directly to the care home
6. There are a number of charities in the UK who offer funding to support people with dementia and their families, including the Alzheimer’s Society and Dementia UK
7. Other sources of funding available include equity release schemes and insurance policies like long-term care insurance.

The eligibility criteria for each type of funding may vary, and the amount of funding you receive will also depend on your individual circumstances.

Challenges and considerations in dementia care funding

Whether at home or in a care home, dementia care home costs and the cost of dementia care can be financially overwhelming for the person living with dementia and their loved ones. 

Families often need to cover a significant portion or all of dementia care home costs, with many feeling the financial strain. The UK’s means-testing system can often be confusing and complex, with many families unsure of what they are entitled to. 

Despite the availability of services, families often struggle to access them due to bureaucratic hurdles, long waiting lists, and geographic disparities. This can delay the diagnosis and initiation of care, leaving families feeling frustrated and unsupported.

To help manage the financial burden associated with care home fees for dementia and paying care home fees for dementia, there are a few things that can help you prepare. 

Budgeting 

Budgeting for care can be difficult as you don’t know what your future needs will be (like dementia care home costs), or how long you will need care for. 

For example, the average cost of dementia care homes in the UK will vary depending on the type of care home and your location, but it’s worthwhile to try and have a plan in place for your loved one. 

It may be worth:

• Seeking professional financial advice on care and retirement 
• Looking at ways to fund your care, such as Deferred Payment Agreements, equity release and if you are eligible for any benefits. Speaking with an equity release expert would be important here as this decision is not to be taken lightly

There is a proposed legislation that from October 2025 there will be a cap on care home fees in England, meaning no one will need to pay more than £86,000 towards their care fees during their lifetime (but this may not happen). There is no cap planned at the moment for Scotland, Wales or Northern Ireland.

Additional care home fees

If your loved one has dementia, some care homes will add an additional supplement on top of overall care fees which funds the care home’s specialist dementia activities and staff training.

When you move your loved one into a care home, check what is covered by the fee. Being aware of the costs will help you plan your budget and ensure that there will be no surprises on your invoice. It will also help you decide what services you may want to reduce or add to your loved one’s care plan.

Benefits

Some benefits will end once you permanently move into a care home, so you will need to let your local benefits office know, but you may still be entitled to some benefits while living in a care home, including:

• Personal Expenses Allowance
• Basic State Pension and New State Pension 
• Pension Credit
• Employment and Support Allowance (ESA)
• Attendance Allowance
• Personal Independence Payment (PIP)
• Disability Living Allowance (DLA)
• Armed Forces Independence Payment (AFIP)
• Universal Credit (UC)
• Bereavement Support Payment (BSP) 
• Statutory Sick Pay (SSP)

Frequently asked questions

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