Is live-in home care cheaper than a care home in 2026?

If you’re deciding between live-in care and a care home, cost is likely to be one of your biggest considerations. Live-in care allows you or a loved one to receive round-the-clock support in the comfort of your own home, but is it cheaper than moving into a care home?

The answer depends on the level of care needed, where you live and whether care is needed for one person or a couple. This guide compares live-in care and care home costs in the UK, explains what affects the price and helps you decide which option offers the best value for your circumstances.

Is live-in care cheaper than a care home?

Live-in care usually costs between £900 and £2000 a week.

The average cost of living in a residential care home for self-funded residents is £1,317 a week. It costs an average of £1,564 a week in a nursing home.

Based on these figures, a residential care home is often the less expensive option for one person, particularly when their needs require a high level of support. However, the cheapest option for you will depend on your individual circumstances.

For example, live-in care may offer better value if two people in the same household both need care. It may also allow you to remain in your own home without paying the costs associated with moving into residential care.

Remember to compare the total cost of each option, not just the weekly care fee. Staying at home means continuing to pay household bills, maintenance and potentially mortgage payments. Moving into a care home may change these expenses, but you will need to consider what happens to your property and other assets.

What affects the cost of live-in care and care homes?

Several factors influence how much you pay for care. Understanding these can help you compare your options more accurately.

1. The type and amount of care you need

Care costs are closely linked to your individual needs.

If you need help with washing, dressing, preparing meals and taking medication, the cost may differ from that of someone who needs specialist support, complex care or regular nursing input.

Care homes that employ registered nurses generally charge more than residential homes that do not provide nursing care. Similarly, live-in care costs can increase if you require more intensive support or specialist expertise.

A care needs assessment can help establish the support you require and identify suitable care options. You can then request quotes based on the same needs to make a fair comparison.

2. How many people need care?

If you and your partner both need support, live-in care may be more affordable than arranging care separately for two people.

With a live-in care arrangement, one carer may be able to support both people, depending on their needs and the level of care required. The provider will assess whether this is appropriate and whether additional carers are necessary.

Some care homes offer accommodation for couples, although availability and pricing vary.

Compare the combined cost of supporting both people at home with the cost of two care home places. Be sure to account for the amount of support each person needs, as more complex care requirements may mean that additional carers are needed.

3. The type of care home you choose

Care home fees vary according to location, facilities and the level of care provided.

A residential home offering personal care may be less expensive than a nursing home providing ongoing clinical support. Specialist dementia care and homes offering additional facilities or luxury accommodation may also charge higher fees.

Location matters, too. Fees can differ considerably between regions and even between homes in the same area.

When comparing care homes, look beyond the headline price. Ask what is included in the weekly fee and whether there are additional charges for services, activities, transport or more intensive care.

What financial support are you eligible for?

In terms of estimating the difference in cost between live-in care and a care home for you personally, you need to find out if you are eligible for any funding towards your care.

Your local authority may pay for some or all of your care, depending on your finances. They measure your finances through financial means test. Local authority funding does mean you may have less choice  about which care home or home care service you receive due to budget limitations, unless somebody is willing to pay a top-up fee for you.

You may also be assessed as being eligible for some of the following:

• NHS continuing healthcare funding
• NHS-funded nursing care (FNC)
• Personal Independence Payment (PIP)
• Attendance Allowance

How your home affects your finances

A big factor in whether live-in home care is cheaper than a care home is how much your home costs you and whether you can use it to pay for your care.

For example, if you are still paying a large mortgage, it may cost you more to stay at home than to sell up and move into a care home.

Moving into a care home also allows you to rent out your home and use the money to pay for your care, or to set up a Deferred Payment Agreement with the council.

On the other hand, the value of your home is not taken into account during a financial assessment as long as you still live there. This could mean that you qualify for more funding from your local authority if you stay in your home than if you don’t. This changes again if you jointly own the property – if your partner will still be living there, it won’t be taken into account as an asset whether you choose a care home or live-in care.
 

Is live-in care or a care home best for me?

While you can be advised on what is best for you financially and what suits your needs according to your care needs assessment, the choice lies with the person receiving care.

If they have been assessed as lacking mental capacity to choose, they should still be supported to choose and involved in the decision as much as possible.

Benefits of live-in care

• It’s very important to you that you remain living in your own home, for the memories and personal value it holds or the continuation of a self-sufficient lifestyle.
• You are part of a couple and you both need care, making live-in care potentially cheaper.
• You would rather have one or two trusted people supporting you than be around lots of different people.
• You are keen to continue with your daily life much the same, but with support to do so
• You would feel safer in your own home where everything is familiar.
• You have pets that you want to stay with (many care homes do accept pets but there are limits).

Dorothy who has live-in care is able to see friends

Dorothy has been using Helping Hands’ live-in care service since 2013. She lives with dementia and wanted to stay in her home around people she knew. Helping Hands matched her with carer Magda and both are very happy.

Dorothy said: “There really is no place like home, and with Magda’s support I am able to keep in touch with all of my friends and neighbours. We visit church every week for the Sunday morning service, I can visit the shops and I also take part in a local knitting group. This really is one of the greatest joys of staying in my own home around the people I know.

Dorothy describes live in-care as “friendship, a sense of security and feeling comfortable in my own home. Having previously spent a brief but unhappy period of time in a care home, I am able to recognise how perfect my situation is now. I feel very lucky and comfortable; I have a true friend. Magda is going nowhere! I want this to continue forever.”

Benefits of a care home

• You have high social needs and want to be around lots of people, both other residents and carers (note that some care homes are larger than others. They can vary from close-knit, family-style homes to large, busy communities).
• You are ready for a new chapter of your life in new surroundings.
• You want opportunities for daily activities, regular outings and new experiences.
• You would feel safer in a residential home where there is more security, more people and more equipment to help you stay mobile safely.
• You don’t have space for the equipment you need for your care in your home. Councils will help you to adapt your home and pay for some equipment, but there are limits. If you need round-the-clock care and are looking into live-in care, you’ll also need a spare room for them.

Janet has ‘made so many friends’ in a care home

Janet lives at Colville Court, part of C&C London homes, in Teddington. 

She said, “Since living here at Colville Court, I have made so many friends and have thoroughly enjoyed participating in many activities from art, ceramics to Tai Chi. I am also a writer, so I also joined the creative writing classes. The classes were so great and very well-organised that I left feeling invigorated and being excited for next week’s class.

Describing feeling nervous to move into a care home, Janet said, “When I arrived at Colville Court over a decade ago, my confidence was low and had feelings of apprehension when I attended my very first activity. But the residents at Colville were so pleasant and welcoming that my feelings of apprehension and lack of confidence disappeared.”

During the pandemic, Janet has been limited in attending activities but has been involved in helping the staff at Colville Court. She explained, “Being able to assist the staff and keeping contact with my good friends at Colville (while socially distancing) has really helped and they have given me great support during the lockdowns.”