21 Aug 2026

More than half of retirees worried about care costs: what you need to know

Residential care costs on average £1,300 per week in the UK

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Many of us will require care at some point in our lives – but it can prove a huge financial challenge, thanks to rising prices and complex rules.

New Which? research has revealed that an increasing proportion of retirees are worried about covering the costs.

This comes as the prime minister Andy Burnham has committed to reforming the ‘broken’ social care system in England.

Here, we explain what’s happening to care costs and your options for funding care.

How much will care cost?

Care costs have been rising faster than inflation for years, so it's no surprise that people are concerned about how to pay for it.

Of the UK retirees we surveyed in May 2026, 55% said they’re concerned about affording care in the future, up from 46% in 2024 and 51% in 2025.

Care in a residential home typically costs £1,300 per week in the UK if you pay yourself, according to data from care-finding service Lottie. But how much you’ll pay will depend on the type of care you need, as well as where you live.

Nursing care costs on average £1,512 per week, while nursing dementia care – typically the most extensive type of support – costs £1,585.

And costs can vary widely by region. This map shows the average cost of residential care by region:

Source: Average residential care home costs from Lottie.org. Average prices are based on costs for self-funders based on the care homes listed on its site. No average cost data available for Northern Ireland. Correct as of 10 April 2026.

But knowing the weekly cost alone won't help you calculate the total bill, as it's far more difficult to predict how long you'll be in a care home.

The British Geriatrics Society reports average life expectancy as 24 months in care homes without nursing and 12 months for those with nursing, but everyone's health is different.

If you do run out of money, local authority funding will kick in, but in some situations this may require moving care homes.

Find out more: care home costs across the UK

What's happening to care costs?

Research from social care consultancy Carterwood found that across Great Britain, the average quoted weekly fee for personal residential care for self-funders rose 8.5% between 2024 and 2025

Rising wages and the increasing cost of things such as food and energy have increased the cost of providing care in recent years, but there are other factors at play.

For years, there has been a substantial gap between the fees paid by self-funders and local authorities, as councils on tight budgets face rising demand for services.

The majority of care homes in the UK are run by private companies, and researchers have warned that funds are leaking out of the care system, rather than being reinvested to improve services

Analysis by Reclaiming our Regional Economies in 2025 found that private care companies delivering public-sector-funded care in the North East, South Yorkshire and West Midlands made £256m profit between 2021 and 2024.

And despite providing a vital service, care workers are some of the lowest paid across the job market. The Joseph Rowntree Foundation has warned that turnover related to low pay is a huge drain on the social care sector, from the cost of covering vacancies to the time lost to hiring and training staff.

The care crisis

Recommendations for fixing the care system due in 2027

Prime Minister Andy Burnham has committed to fixing England's 'broken' social care system.

Possible options for reform range from a basic level of free personal care for everyone (similar to what’s offered in Scotland), a cap on care costs or an NHS-style care system that’s free at the point of use.

The Casey Commission – which was launched in 2025 to review social care in England – has been brought forward, with final recommendations now due in 2027.

Bear in mind that the recommendations may not be implemented, or may take several years to implement.

A previous proposal by Boris Johnson's government to cap care costs at £86,000 per person was postponed and eventually abandoned after being deemed unaffordable.

Everyone in England is invited to have their say as part of the Big Conversation on Care. Visit the Casey Commission's website for more information.

Will I be eligible for help?

If you need care, there are three ways you might pay for it: local authority funding, NHS funding (in certain cases) or from your own savings.

Local-authority funding is means-tested, and how much support you’ll receive depends on your savings, assets and income. This table shows the capital limits across the UK for 2026-27

Country	Upper capital limit	Lower capital limit
England	£23,250	£14,250
Scotland	£35,000	£21,500
Wales	£50,000	N/A
Northern Ireland	£23,250	£14,250

If your savings are above the upper capital limit, you’ll need to pay for care yourself.

You’ll qualify for full support if your savings are below the lower capital limit, but you’ll likely have to contribute some of your income (including the state pension) towards the cost of care. If your savings are between the two limits, you’ll also have to pay a tariff income of £1 a week for every £250 of savings.

You must be allowed to keep a certain amount for day-to-day spending, known as the personal expenses allowance (or minimum income amount in Wales). Here are the 2026-27 allowances:

England: £31.80
Northern Ireland: £36.62
Scotland: £37.65
Wales: £46.35

Find out more: how moving into a care home affects your income and benefits

What you need to know about paying for care

1. Check whether you’re eligible for local authority funding

If you need care, the first step is to contact your local authority for a needs and financial assessment, even if you think you might need to pay your own care fees.

This is because the needs assessment may offer solutions other than moving into a care home, or show you’re eligible for NHS funding.

And owning a home doesn’t automatically disqualify you from support: the value of your home usually isn’t included in the means test if you receive care at home, or if certain people still live there (a spouse or civil partner, relatives aged 60 or over, disabled relatives, your children under the age of 18 or an estranged/divorced partner if they're a lone parent).

In Scotland, everyone who needs it is entitled to free personal and nursing care from their local authority, which can help cover some of your care home fees. Visit mygov.scot for more information.

2. Understand other forms of support

If your needs are primarily health-related, you may qualify for support under the NHS continuing healthcare (CHC) scheme in England, Wales and Northern Ireland.

This funding isn’t means-tested, but the chances of receiving it are slim: in the first quarter of 2026-27, just 18% of those assessed for standard continuing healthcare in England were deemed eligible.

NHS CHC isn’t available in Scotland, but the NHS may pay for ongoing care in a hospital setting, depending on your needs.

If you receive care in your home, you may be eligible for free home adaptations, such as handrails and wheelchair ramps, as long as they cost less than £1,000 each.

And make sure you're receiving all the benefits you're entitled to: attendance allowance and pension age disability payment in Scotland aren't means-tested, and provide support with care costs.

Find out more: what happens to income and benefits when you move into care

3. Consider your options for self-funding

If you need to pay for your own care, there are various options to consider.

If you already have health insurance or long-term care insurance, this can help cover the costs.

An immediate needs annuity provides a guaranteed monthly income to cover the costs of long-term care. Unlike income from standard annuities, the money is paid directly to the care provider and isn’t taxed.

You won't usually get your original payment back if you no longer need care, so you should consider seeking financial advice if you're considering this option.

In some cases, you may need to sell your home to cover the costs of care. If you don’t want to sell your home straight away, you may be able to get a deferred payment agreement from the local council.

Under this agreement, the council pays your care fees, and you don’t have to repay them until you’ve sold your home or after you’ve died.

A financial adviser can help you understand your options for paying for care, and the rules around how moving into a care home will affect your income and benefits. The Society of Later Life Advisers accredits advisers who are specialised in later-life planning and the financial needs of older people.