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 short answer is yes – but only in certain circumstances. There are also rules in place to protect you. This guide explains what to expect, what your rights are, and what to do if something doesn’t feel right.

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.

Can a care home increase fees after you move in?

Yes, care home fee increases do happen and they can feel worrying if you’re not expecting them.

In most cases, though, there should be no surprises.

Increases must be clearly explained and justified in advance.   

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

The Competition and Markets Authority (CMA) has produced guidance for care homes highlighting their obligations under consumer law. Consumer law requires care homes to provide key
information upfront, so that residents can make informed decisions.

This obligation applies before as well as after the resident has moved in or signed a contract with you.

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 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. You must have a 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.

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.

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.

Fair care home contract changes

Changes that are usually reasonable:

• Adjustments due to increased care needs.
• Updates to services or facilities.
• Changes required by law or regulation.

Unfair changes

Changes that may be unfair:

• Sudden fee increases without notice
• Reducing agreed services without explanation
• Adding new charges that weren’t in the original agreement
• Charging fees for long periods after a resident has passed away

If something doesn’t feel right, trust that instinct — it’s always okay to ask questions.

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?

Fee changes can feel unsettling, especially when you’re already dealing with the emotional side of moving into care.

But you’re not without protection. With the right information and a clear contract, you can feel more confident about what to expect — and what to do if things change.

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, care home fees, read real reviews from residents and families and access expert guidance on care choices to help avoid surprises later.

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