A nursing home in England costs £1,200-£1,600 per week in 2026, or £62,400-£83,200 per year. Specialist dementia nursing homes cost £1,400-£1,700 per week. That is roughly £11,000 per year more than a residential care home — the premium for 24-hour qualified nursing staff.
But here is what most families paying nursing home fees do not know: the NHS contributes £267.78 per week towards the cost of nursing care in a nursing home, regardless of how much the person has in savings. That is £13,924 per year — and many self-funders never claim it because nobody tells them it exists.
This guide covers what nursing homes actually cost by region and care type, the FNC contribution you should be claiming, and every other funding route available.
This guide covers England only. Scotland, Wales, and Northern Ireland have different care funding systems.
Last updated: March 2026.
Average Nursing Home Costs by Region
Nursing home fees vary significantly depending on where you live and the level of care needed.
| Nursing home type | Average weekly cost (2026) | Annual cost |
|---|---|---|
| Standard nursing | £1,200-1,600 | £62,400-83,200 |
| Dementia nursing | £1,400-1,700 | £72,800-88,400 |
| London / South East | £1,500-1,800+ | £78,000-93,600+ |
| North / Midlands | £1,000-1,400 | £52,000-72,800 |
London and the South East carry a 15-25% premium over the national average, driven by higher property costs, staff wages, and operational expenses. The North of England and the Midlands sit at the lower end of the range, though quality varies as much as price. Fee data is benchmarked against LaingBuisson's annual care home market report.
These fees are all-inclusive: accommodation (private room, usually with en-suite), all meals and refreshments, personal care, nursing care from qualified nurses 24 hours a day, an activities programme, housekeeping, and laundry.
Nursing Home vs Residential Care Home: The Price Difference
| Residential care home | Nursing home | Difference | |
|---|---|---|---|
| Average weekly cost | £1,300 | £1,512 | +£212/week |
| Average annual cost | £67,600 | £78,600 | +£11,000/year |
The price difference reflects three things:
- Qualified nurses on duty 24/7 — registered nurses are paid significantly more than care workers, and a nursing home needs several to cover all shifts
- Clinical equipment and supplies — wound care materials, clinical monitoring equipment, medical-grade supplies
- Higher insurance premiums — nursing homes carry greater clinical liability
The question for families is whether the person genuinely needs nursing care. If their needs are personal care only (washing, dressing, medication prompting, meals), a residential care home provides the same quality of life at £11,000 less per year. If they have clinical needs, a nursing home is essential.
For help understanding which level of care is right, see our guide to the difference between a care home and a nursing home and our guide on what nursing care in a care home actually means.
The £13,924 per Year Many Families Do Not Claim
NHS-Funded Nursing Care (FNC) is the most commonly missed contribution in the entire care funding system.
What it is
The NHS pays £267.78 per week (2026 rate) towards the cost of nursing care for anyone in a registered nursing home who has nursing needs. This is paid directly to the nursing home, reducing the bill.
Who qualifies
Everyone in a nursing home who receives nursing care. There is no means test. It does not matter if the person has £10,000 or £1,000,000 in savings. If they are in a nursing home and receiving nursing care, they are entitled to FNC.
Why families miss it
FNC should be applied automatically. In practice, it is sometimes not set up — particularly for self-funders who pay fees directly to the home without council involvement. The nursing home receives the payment, so from their perspective there is less urgency to set it up if the full fee is being paid anyway.
What to do
Ask the nursing home: "Is NHS-Funded Nursing Care being applied to our fees?" If not, contact your local Integrated Care Board (ICB) to request an FNC assessment. The assessment is straightforward — it confirms that the person is receiving nursing care in a registered nursing home.
At £267.78 per week, this is £13,924 per year. Over a typical 2-3 year nursing home stay, that is £26,000-£40,000. It is worth a phone call.
Worked Scenario: The Power of FNC and Attendance Allowance
To see how these non-means-tested benefits change the financial reality for a self-funder, let's look at the math.
The Situation: Arthur (84) needs to move into a nursing home in Yorkshire. He has £60,000 in savings, so he must self-fund his care. The nursing home quotes a fee of £1,300 per week.
Without Claiming Entitlements: Arthur pays £1,300 every week. His £60,000 savings will drain down to the £23,250 council threshold in just 28 weeks (about 6.5 months).
With FNC and Attendance Allowance Claimed:
- The nursing home applies for FNC. The NHS pays £267.78/week directly to the home, dropping Arthur's bill to £1,032.22/week.
- The family applies for the higher rate of Attendance Allowance, giving Arthur an extra £114.60/week in income.
- Arthur's net weekly drain on his savings is now: £1,032.22 - £114.60 = £917.62 per week.
- At this new rate, his savings will last 40 weeks before hitting the threshold.
Result: By claiming two benefits that are entirely independent of his wealth, Arthur's family bought themselves an extra 3 months of financial runway and saved nearly £20,000 in a single year.
All Funding Routes for Nursing Home Care
| Funding route | Who qualifies | Amount | Means-tested? |
|---|---|---|---|
| NHS Continuing Healthcare | Primary health need | Fully funded | No |
| NHS-Funded Nursing Care | Anyone in a nursing home | £267.78/week | No |
| Council funding | Assets below £23,250 | Means-tested | Yes |
| Attendance Allowance | Self-funders over pension age | £76.70 or £114.60/week | No |
| Deferred payment agreement | Homeowner with low savings | Full fees deferred | Yes |
NHS Continuing Healthcare (CHC)
If the person has a "primary health need," the NHS funds all care costs — including the accommodation and nursing fees. There is no means test. CHC is assessed by the local Integrated Care Board through a multidisciplinary team assessment.
Many people in nursing homes qualify for CHC but are never assessed. If the person has complex medical needs, advanced dementia, or is approaching end of life, ask for a CHC assessment. Fast-track CHC can be arranged within 48 hours for rapidly deteriorating conditions.
See our guides to CHC eligibility and appealing a CHC refusal.
Council funding
The standard means test applies. Above £23,250 in assets, you pay the full cost. Between £14,250 and £23,250, the council contributes. Below £14,250, the council pays in full. Property is usually included in the assessment after a 12-week disregard.
See our means test guide for the full breakdown.
Attendance Allowance
If the person is self-funding, Attendance Allowance pays up to £114.60 per week and is not means-tested. Important: Attendance Allowance stops after 28 days if the person becomes council-funded. It continues for self-funders.
Deferred payment agreement
If the person's main asset is their home and their liquid savings are low, a deferred payment agreement allows the council to cover fees while the house is retained. The debt is repaid later from the property sale or estate.
For a comprehensive guide to every funding option, see our care home funding hub.
For a personalised assessment of which routes apply to your specific situation, our Funding Guide checks all options in one report.
What Is Included in the Fees
Standard nursing home fees cover:
- Accommodation — a private room, usually with en-suite bathroom
- All meals and refreshments — breakfast, lunch, dinner, snacks, and drinks
- Personal care — washing, dressing, toileting, medication administration
- Nursing care — wound care, clinical monitoring, medication management, 24-hour nursing
- Activities programme — daily organised activities and entertainment
- Housekeeping and laundry — room cleaning, bed changing, personal laundry
What is usually charged separately
- Hairdressing (visiting hairdresser, charged per appointment)
- Chiropody / podiatry (may be NHS-funded)
- Premium rooms (larger rooms, better views, or ground-floor access)
- Specific outings (entrance fees, meals out)
- Personal toiletries (most families bring their own)
Fee increases
Ask about the fee increase policy before signing the contract. Most nursing homes increase fees annually — typically by 3-8%. Check:
- How much notice must the home give before increasing fees?
- Is there a cap on annual increases?
- What is the increase based on (inflation, wage costs, "at the home's discretion")?
Open-ended increase clauses with no cap are a financial risk over a multi-year stay.
How to Reduce Nursing Home Costs
1. Claim NHS-Funded Nursing Care
As described above — £13,924 per year. If you are not claiming it, start today.
2. Check CHC eligibility
Even if the initial screening suggests the person does not qualify, request a full multidisciplinary assessment. CHC eligibility changes as the person's condition changes. A person who was not eligible 12 months ago may be eligible now.
3. Negotiate the fee
Councils pay nursing homes less than self-funders. The gap can be £100-£300 per week. This means there is room to negotiate, particularly if the home has low occupancy.
A Critical Edge for Self-Funders (The MSIF Benchmark): You do not need to guess what the council pays. RightCareHome analyzes the Market Sustainability and Improvement Fund (MSIF) data—the exact rates local authorities pay for nursing beds. If a nursing home quotes you £1,600/week (minus FNC), but the MSIF data shows your council pays them £1,150/week for the same bed, you have massive leverage. Our Funding Calculator automatically provides the MSIF benchmark for your council area to help you negotiate a fairer rate.
4. Claim Attendance Allowance
If self-funding, £114.60 per week at the higher rate is £5,960 per year. Combined with FNC, that is over £19,000 per year in contributions — nearly a quarter of the average nursing home fee.
5. Consider a deferred payment agreement
If the person owns a home and has limited liquid savings, a DPA avoids a forced property sale. Interest applies (4.75% APR from January 2026), but it buys time.
For a full guide to reducing costs, see our article on how to reduce care home fees legally.
Finding a Nursing Home
Not all nursing homes are equal. What to check:
- CQC registration — confirm the home is registered for "Treatment of disease, disorder or injury" (the CQC category for nursing homes)
- Specialist expertise — if the person has dementia, Parkinson's, stroke, or another specific condition, check the home's experience with that condition
- Staffing ratios — ask how many nurses and care workers are on duty during the day and at night. A good ratio is 1 nurse per 5-8 residents
- Staff turnover — high turnover means inconsistent care. Ask how long the manager and senior nurses have been in post
Our Funding Calculator matches you to nursing homes based on 156 quality factors — CQC performance, specialist capability, staffing patterns, location, and fees. It also provides your exact local MSIF rates, giving you a starting point based on evidence, not advertising.
Get Your Custom Funding Action Plan
For a thorough check on a specific home, see our verification checklist.
Regional Worked Example: North East vs South East
| North East | South East | |
|---|---|---|
| Typical weekly fee | £1,100 | £1,500 |
| NHS FNC deduction | -£267.78 | -£267.78 |
| Net weekly cost | £832.22 | £1,232.22 |
| Annual net cost | £43,275 | £64,075 |
The same FNC contribution applies regardless of region, but the gap in out-of-pocket costs is over £20,000 per year. This is why regional fee data matters when planning a budget.
Sources
- NHS — NHS-Funded Nursing Care
- CQC — Care Quality Commission: Find and Compare Services
- LaingBuisson — UK care home fee benchmarking data (2025/26)
- GOV.UK — Attendance Allowance
- Skills for Care — The State of the Adult Social Care Sector and Workforce