Self-Funding Your Care Home: A Complete Guide
If your capital exceeds £23,250 (England), you will need to fund your own care. This guide explains your rights, the benefits you can still claim, and how to plan for the future.
What Does Self-Funding Mean?
If your assessable capital (savings, investments, and potentially your property) exceeds £23,250 in England, you are considered a self-funder. This means you pay the full cost of your care home fees from your own resources.
The average cost of a care home in the UK in 2026 is approximately £949/week for residential care and £1,267/week for a nursing home. Costs vary significantly by region, with London and the South East typically being more expensive.
Important: Even as a self-funder, you have important rights. The council must still carry out a care needs assessment and provide information and advice. You do not have to navigate this alone.
Your Rights as a Self-Funder
Many self-funders are unaware of the rights and entitlements they retain. Here is what you are entitled to regardless of your financial position:
Your local authority must carry out a care needs assessment free of charge, regardless of your finances. This determines what care you need.
The council must provide free information and advice about care and support in your area, including how to find and choose a care home.
You have the right to choose your preferred care home, including one outside your local authority area, as long as it is suitable for your needs.
You should notify your local authority when your capital is approaching £23,250. They must then carry out a financial assessment and begin contributing to your costs.
If you are in a nursing home and need care from a registered nurse, you are entitled to NHS-funded nursing care (FNC) regardless of your financial position.
Benefits You Can Still Claim
Being a self-funder does not mean you lose all entitlement to benefits. The following are available to self-funders in care homes:
| Benefit | 2026/27 Rate | Notes |
|---|---|---|
| Attendance Allowance (higher rate) | £114.60/week | For those needing help day and night, or who are terminally ill |
| Attendance Allowance (lower rate) | £76.70/week | For those needing help during the day or night |
| State Pension | Up to £221.20/week | Continues in full as a self-funder |
| NHS-funded nursing care (FNC) | £267.68/week (from Apr 2026) | Paid directly to nursing home. Not means-tested. |
Note: Attendance Allowance stops if the local authority begins paying for your care. It also stops after 28 days if you receive NHS Continuing Healthcare. Claim it while you are self-funding.
Options If You Own a Property
If your capital is mainly tied up in property, you have several options to fund your care without selling immediately:
Deferred Payment Agreement (DPA)
Your local authority can pay your care home fees and register a legal charge against your property. The debt is repaid when the property is sold — usually after you pass away or move out. Interest is charged, but it is capped at a government-set rate.
Avoids immediate sale. Care is funded immediately.
Interest accrues over time. Property must eventually be sold.
Equity Release
A lifetime mortgage or home reversion plan allows you to release equity from your property while retaining the right to live there (if a partner remains). This can provide a lump sum or regular income to fund care.
Access funds without selling. Partner can remain in the home.
Reduces inheritance. Interest compounds over time. Seek specialist advice.
Renting the Property
If the property is empty, renting it out can generate income to help fund care costs. Rental income is included in the means test if you later apply for council funding.
Regular income. Property retained.
Landlord responsibilities. Income included in means test.
Selling the Property
Selling the property provides a lump sum to fund care. The 12-week property disregard applies when you first enter permanent care, giving you time to arrange the sale.
Simplest option. Full capital available.
Property lost. May affect inheritance.
Planning Ahead: Getting Professional Advice
Care home funding is complex, and the decisions you make can have significant long-term financial consequences. We strongly recommend seeking independent financial advice from a specialist in care fees planning.
Look for SOLLA accreditation
The Society of Later Life Advisers (SOLLA) accredits financial advisers who specialise in care fees planning. An accredited adviser can help you understand your options and plan how to fund care in a tax-efficient way.
You should also consider putting a Lasting Power of Attorney (LPA) in place if you have not already done so. An LPA for property and financial affairs allows a trusted person to manage your finances if you lose mental capacity.
Check your funding position
Use our free calculator to see exactly where you stand and what you may be entitled to.
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