for families. Alongside the many questions around care and wellbeing, one of the most common concerns is financial: Do people with dementia have to pay care home fees? The answer depends on several factors, including the type of care required, the individual’s financial situation, and whether their needs are considered primarily medical or social. In this post, we explore what you need to know about funding dementia care in the UK and what help may be available.
Understanding Care Home Costs for Dementia
Care home fees typically cover accommodation, meals, personal care and 24-hour support. When someone is living with dementia, the type of care they require will vary depending on the progression of their condition. Some people may need help with everyday tasks and memory support, while others will require complex nursing care in a specialist environment.
Dementia care can be provided in residential care homes or nursing care homes like those operated by Runwood Homes. The cost of this care varies depending on location, type of care, and the level of support needed.
Who Pays for Dementia Care?
Whether someone has to pay for their own care depends on a financial assessment (means test) carried out by the local authority. This assessment looks at income, savings and assets – including property – to determine how much, if anything, the individual must contribute toward their care home fees.
As of 2025, the following thresholds generally apply in England:
- If you have over £23,250 in assets, you will be expected to pay your own care home fees in full.
- If you have between £14,250 and £23,250, you may need to contribute toward the cost, with the local authority covering the rest.
- If you have less than £14,250, your local council will typically cover the cost, although contributions from income (such as pensions) may still be required.
NHS Continuing Healthcare
Some people with dementia may qualify for NHS Continuing Healthcare, which is fully funded care provided by the NHS. This support is not means tested and is based entirely on care needs. If your loved one’s primary need is for healthcare – rather than social care – they may be eligible for continuing healthcare funding, which would cover the full cost of care in a care home, including accommodation and nursing support.
However, NHS continuing healthcare assessments can be complex and not everyone with dementia qualifies. The application involves an in depth review of the person’s physical and mental health, and how much their needs require skilled medical intervention. It is always advisable to seek guidance or advocacy during this process, as outcomes can vary.
NHS-Funded Nursing Care
If a person with dementia doesn’t qualify for NHS continuing healthcare but requires nursing care, they may still be eligible for NHS-Funded Nursing Care. This is a weekly payment made directly to the care home to help cover the cost of registered nursing support. As of April 2025, this stands at £254.06 per week in England (subject to change).
Local Authority Funding Support
When applying for local authority support, a care needs assessment will be conducted before the financial means test. This helps determine whether the person requires residential or nursing care and what level of support is appropriate.
If eligible for funding, your local council may suggest one of their partnered care homes. However, you may choose a different home, such as a private care home with additional services or amenities (e.g. care homes like those offered by Runwood Homes). In this case, a third-party ‘top-up’ payment may be required to cover the difference in fees.
Attendance Allowance and Other Benefits
People with dementia may also be entitled to Attendance Allowance, a non-means-tested benefit for those over State Pension age who need help with personal care due to a disability or illness. It can help with the cost of care at home or contribute to care home fees if the individual is self funding.
Other possible benefits include:
- Personal Independence Payment (PIP) for those under State Pension age
- Pension Credit, if applicable
- Council Tax reductions or exemptions for those with a severe mental impairment
These benefits can make a meaningful difference in covering the cost of dementia care.
Plan Early, Seek Advice
Navigating the financial side of dementia care can be confusing, but you don’t need to face it alone. Consulting an independent financial adviser who specialises in later life finances, such as a fully listed member of the Society of Later Life Advisers (SOLLA), will help you explore your options, such as long-term care insurance and safeguarding your assets. You can also speak with your local authority or a professional care provider about your options.
At Runwood Homes, our experienced team is here to guide families through the process and offer support every step of the way.
Why Choose Runwood Homes?
At Runwood Homes, we provide experienced dementia care in a warm, respectful and supportive setting. Our homes are designed with the needs of people living with memory loss in mind, and our highly trained staff are committed to enhancing residents’ wellbeing and dignity. With over 59 care homes across the UK, we offer a range of residential, nursing, dementia and respite care services tailored to individual needs.
Speak to Our Experienced Team Today
If you are unsure whether a loved one with dementia needs full-time care, or you would like help understanding the financial side of things, do not hesitate to contact our friendly team.
Let us help you find the right care, at the right time, with clarity and compassion.
