Care home cost guide to London (2026): Fees and funding

London is the most expensive part of the UK for residential and nursing care. This guide explains typical weekly fees in London, how to reduce costs, what’s usually included and the main funding routes.

London care home costs: typical weekly fees

Care home fees vary widely by borough, type of building, staff ratios, and the kind of care required. But these figures which come from fees data collected by carehome.co.uk are very useful in giving an idea of what you can expect to pay.

There are currently 570 care homes listed on carehome.co.uk and six of those listed charge over £2,500 a week.

Residential care (personal care, no on-site nursing)

• London average (self-funded residential): £1,548 per week
• England average for self-funders (residential): £1,298 per week

Nursing homes (includes registered nurses)

• London average (Self-funded nursing care): £1,759 per week
• England average for self funders nursing care: £1,535 per week

Dementia care (residential dementia and nursing dementia)

Specialist dementia support can exceed standard residential and nursing fees.

• London average (Self-funded dementia residential care): £1,599 per week
• England average for self funders dementia residential care: £1,343 per week

• London average (Self-funded dementia nursing care): £1,767 per week
• England average for self funders dementia residential care: £1,564 per week

Council-funded vs self-funded rates (why the same room can cost different amounts)

There is a difference between what councils typically pay and what private individuals pay:

• Residential care: councils – £908 per week (figures from LaingBuisson) vs private pay £1,298 per week (England average).
• Nursing care: councils – £1,225 per week (figures from LaingBuisson) vs private pay £1,535 per week (England average).

London tends to sit above these national averages. This gap is one reason families sometimes see higher ‘private pay’ quotes.

What’s normally included in care home fees

Most London care homes include:

• Accommodation (room and utilities)
• Meals and basic snacks
• Personal care (washing, dressing, mobility support)
• Laundry
• Activities programme
• Basic GP access / coordination (varies)

Often charged extra (check the contract):

• Hairdressing, chiropody/podiatry, private physiotherapy
• Escorting to appointments
• Some continence products
• Premium room options (larger rooms, en-suite, garden view)
• Some specialist dementia/1:1 support packages

Tip: Ask for a written breakdown of core fee vs top-ups/extras

Why London is pricier than the rest of England

London care home prices are influenced by:

• Higher staffing costs, competition for trained carers and wage pressures
• Property and operational costs (rent, maintenance, compliance)
• Greater concentration of premium/luxury developments
• Demand from both UK residents and international families

This is why London can be hundreds of pounds per week higher than many other regions.

Who pays? The three main funding routes in England (and how they apply in London)

Route 1: Self-funding

You typically self-fund if you have savings and capital above the threshold.

• If you have more than £23,250 in savings/capital, you usually pay the full cost yourself.
• If your savings fall towards £23,250, you can request a needs assessment and financial assessment as you may then become eligible for help.

Route 2: Local authority (council) support

If your savings and capital are below the threshold, the council may contribute.

• The council will do a needs assessment and a financial assessment to work out how much you pay.
• Even with support, you will usually contribute most of your income, while keeping a small weekly amount for personal spending also known as Personal Expenses Allowance which is £30.65 per week.

Each London borough will carry out its own financial assessment, but they work within the national Care Act framework.

Route 3: NHS funding (Continuing Healthcare)

Some people with complex health needs qualify for free care arranged and funded by the NHS, even in a care home.

• NHS Continuing Healthcare (CHC) covers the full package of care for eligible individuals.
• Eligibility is based on health needs, not diagnosis or finances.

If someone is in a nursing home but does not qualify for CHC, they may still receive NHS-Funded Nursing Care (FNC) – a weekly contribution toward the nursing element.

Common hidden costs and pitfalls especially in London

1) Third-party top-ups

Care homes tend to be more expensive in London and if the council rate won’t cover your preferred home, a family member may be asked to pay a ‘top-up’. Always get clarity on:

• Whether it can increase annually
• What happens if the payer can’t continue to pay

2) Care fee inflation

Care home fees often rise annually. When planning, assume there will be annual fee increases and ask the care provider about what is a typical yearly fee increase.

3) Deprivation of assets

Transferring property or gifting money to qualify for council support can be challenged. This issue has become more prominent as care costs rise.

If you’re considering any asset transfer, take regulated financial and legal advice.

Practical planning: how to estimate your likely bill

A quick way to plan is to work in three steps:

Step 1 – Identify what kind of care you need

• Residential vs nursing vs dementia nursing

Step 2 – Estimate London weekly fee

Use realistic ranges:

• Residential care (self-funded London): around £1,548 per week
• Nursing/dementia nursing (self-funded London): around £1,759 per week

Step 3 – Work out the monthly/annual fee

Multiply weekly fees:

• £1,548 per week = £6,192 per month and £80,496 per year
• £1,759 per week = £7,036 per month and £91,468 per year

How to reduce costs without compromising safety

Here are common cost-saving approaches that help reduce your care home costs

1. Consider outer boroughs (still within London but often these may be cheaper than central zones)
2. Compare room types (standard vs premium suites)
3. Ask about respite-to-permanent transitions (sometimes this offers flexibility)
4. Explore CHC and FNC eligibility early if health needs are complex

Checklist of questions to ask any London care home

Before you sign, ask:

Costs and contracts

• What is the weekly fee, and what does it include?
• What are the extras, and how are they charged?
• What is the annual fee increase policy?
• Are deposits required?

Care and quality

• Staff ratio day vs night
• Dementia training / specialist support
• How medication is managed
• CQC rating and most recent inspection summary

Funding compatibility

• Will the home accept council rates if finances change?
• Do they require top-ups?
• What happens if your savings fall below £23,250?

Organisations in London that can help older people needing care

If you’re exploring care options in London (care at home, day support, residential care, nursing or dementia care), there are several trusted organisations that can provide free advice, practical support, advocacy, and local signposting.

1) Age UK London and local Age UK branches

Best for: general advice, benefits guidance, care options, local services, community support
Age UK London is a regional charity supporting older Londoners and helping connect them to services. If you want help specific to your borough, Age UK London lists local Age UKs across London, which often provide advice, social groups, home help services, and support with navigating care.

2) Your local council’s Adult Social Care team (London boroughs)

Best for: needs assessments, care funding assessments, arranging council-funded care
Every London borough has an Adult Social Care team responsible for:

• Care needs assessments (what support someone requires)
• Financial assessments (what the person must contribute)
• Arranging care packages, home care, or placements where eligible

Tip: Even if someone is currently self-funding, it can be helpful to request an assessment early so there’s a plan in place if needs change.

3) Independent Age

Best for: free advice on care, housing, and money, especially for people in financial hardship

Independent Age specialises in advice for people struggling financially. Independent Age

4) The Silver Line Helpline

Best for: loneliness, emotional support, friendly conversation, signposting
The NHS lists The Silver Line as a dedicated helpline for older people, available 24/7, offering a listening ear and help connecting to services.

5) Alzheimer’s Society (London services)

Alzheimer’s Society is best for dementia-specific information, local dementia services, support groups and dementia advisers.

6) Carers UK (support for family carers in London)

If you’re a family member caring for an older adult (even informally), Carers UK provides advice, rights guidance, and support.

8) Citizens Advice (London branches)

Best for: benefits, debt, housing, and general legal/consumer advice
Citizens Advice London can help families understand their rights and what help they may be able to get.

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