Can a care home change fees or contract terms after you move in?

Could my care home fees change or other contract terms after I’ve moved in? If you want to know can care homes increase fees the answer is yes under certain conditions. This guide helps you understand your rights concerning a care home fees change and what care homes are legally allowed to change.

At a glance

• Care homes can change fees or contract terms after move-in but only if this is clearly stated in the contract and proper notice is given.
• Fee increases are usually linked to rising costs or increased care needs and must be explained in writing.
• Unfair or unexpected changes, such as sudden charges or reduced services, can be challenged by residents or families.

Care home fees UK: Can a care home increase cost after you move in?

Yes, a care home can increase fees, but increases must be clearly explained and justified in advance.   

Understanding your care home contract’s terms and conditions, including care home fees is vital.

Your care home contract should outline the cost of the service and how payments will be made. It will include any deposit required, weekly fees, top-up fees, additional charges and notice period for any increases.

Care homes typically raise fees due to:

• Rising staffing and operational costs.
• Increased care needs of the resident.
• Annual or inflation-linked reviews.

A care home can only raise its fees within the rules set out in the contract and consumer protection laws.

A care home may increase a resident’s fees if you request and receive an enhanced service or better room, provided that this is clearly different from the service you are already paying for within the standard weekly fees and that you retain the choice as to whether you want to pay for it.

Any potential fee increases should be outlined in the care home contract before you move in.

What is a care home contract?

A care home contract helps ensure your rights are protected and your care home is held accountable for its services including a care home trial period and care home notice period. 

The contract’s terms and conditions must be written simply and clearly, avoiding jargon, so that you can easily understand your rights and responsibilities.

How much notice must a care home give?

Most care homes are required to give written notice. You should be given at least 28 days notice before fees increase or terms change.

Notice periods should be clearly stated in:

• The resident agreement.
• Terms and conditions.
• Admission contract.

If notice isn’t provided, families have the right to question or challenge the increase.

Can care homes change contract terms?

Yes but care homes cannot make unfair or unexpected changes to contracts once a resident has moved in.

The care home contract should clearly specify the level of care and the services the care home will provide during your stay.

Your contract should also include details of the process if your care needs change and your care plan needs to be adjusted.

Legitimate care home contract changes

Legitimate contract changes may include:

• Adjustments due to increased care needs.
• Updated service offerings.
• Regulatory or legal compliance changes.

Unfair changes

Unfair changes may include:

• Sudden fee increases without notice.
• Reducing agreed care services.
• Introducing new charges not in the original contract.
• Requiring care home fees to continue to be paid for extended periods after a resident has died.
• Requiring upfront payments, unless it is a fair deposit or an advance payment of the regular residential fees.

What if care needs increase?

If a resident’s care needs increase significantly, a care home may:

• Reassess care requirements.
• Propose a higher fee to reflect extra support.
• Discuss alternative care options if needs exceed what the care home can safely provide.

Any changes must be explained, documented and agreed upon.

Contract changes: What are your rights as a care home resident or relative?

Residents and families have the right to:

• Receive clear, written contracts.
• Be informed of any changes in advance.
• Ask for a breakdown of fees.
• Challenge unfair or unclear increases.
• Right to Leave:  If you are unhappy with the changes, you or your family member should be able to leave the care home without penalty before the new terms take effect. A care home must give residents a pro-rata refund of any prepayments they have made if they decide to leave before the change takes effect.

For residents funded by a local authority, top-up payments for care homes can only increase on the anniversary of the placement and with at least four weeks’ notice.

If concerns arise, you can:

• Speak directly with the care home manager.
• Request a contract review.
• Seek independent guidance.

To read more about rights for care home residents you can visit the UK government website.

How can I make a care home complaint?

If you as a resident wish to make a complaint, the care home’s formal complaints procedure should be outlined in the care home contract.

You always have the right to make a complaint about your care or the way you are treated. The care setting is obligated to make it easy for you to complain. Staff must never discourage you from doing so.

How can you avoid unexpected care home fee changes?

Before choosing a care home, you should:

• Ask how often fees are reviewed.
• Check notice periods for increases.
• Clarify what is included and excluded in fees.
• Understand top-up fees and additional charges.
• Understand what should be included in a care home contract’s terms and conditions and seek legal advice if necessary before signing it.      

Using carehome.co.uk, you can compare care homes, read real reviews, and access transparent information to help avoid surprises later.

You can compare care home fees and services, read verified reviews from residents and families and access expert guidance on contracts and care choices.

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