Care Homes Wales logoCare Homes WalesTrusted Care Home Information Across Wales

Resources

Paying for Care Homes in Wales

Understanding how care-home fees are paid can feel complicated. This guide explains the main funding routes in Wales, including local-authority support, self-funding, NHS Continuing Healthcare and financial help that may be available.

Important

This guide provides general information and is not financial or legal advice. Care-funding decisions depend on individual circumstances, and rules and rates can change. Speak to your local authority or an independent adviser before making financial decisions.

Care-home funding in Wales at a glance

  • Your local authority should first assess your care and support needs.
  • A separate financial assessment may then look at your income, savings, investments and property.
  • If your capital is over £50,000, you may have to pay the full cost of residential care.
  • If your capital is £50,000 or below, your local authority may contribute towards your eligible care costs.
  • Even where the local authority contributes, most people are still expected to pay an assessed contribution from their income.
  • Some people with a primary health need may qualify for NHS Continuing Healthcare, which is not means-tested.
  • You should not assume that moving into care automatically means selling your home.

Figures checked in July 2026. Always confirm current thresholds and rules with your local authority.

Who pays for a care home in Wales?

Care-home funding in Wales can come from one or more of the following sources:

  • The individual paying privately
  • The local authority contributing following a care-needs and financial assessment
  • The NHS through Continuing NHS Healthcare
  • An NHS contribution towards registered nursing care
  • Benefits or other personal income
  • An additional-cost contribution from another person in some circumstances

The first important step is usually a care and support needs assessment carried out by the person's local authority. A financial assessment is a separate process that looks at the person's ability to pay for the care identified.

The local-authority financial assessment

After eligible care and support needs have been identified, the local authority may carry out a means-tested financial assessment. The assessment may consider:

  • Savings
  • Investments
  • Income
  • Pensions
  • Certain benefits
  • Property, where applicable
  • The individual's share of jointly held assets

The assessment should relate to the finances of the person receiving care, although joint assets may need to be apportioned. The authority should provide the outcome and calculation, and you can ask them to explain or review a charge.

The £50,000 capital limit in Wales

In Wales, if a person has capital above £50,000, they may have to pay the full cost of their residential care. If their capital is £50,000 or below, the local authority may help pay for eligible residential care costs.

  • Capital can include savings, investments and property where it is counted
  • The local authority will still consider eligible income when calculating the person's contribution
  • Being below the capital limit does not usually mean care is completely free
  • The capital limit applies to residential care funding and should not be confused with rules for care provided at home
  • People should obtain an individual financial assessment rather than calculating entitlement from this guide alone

Local authorities must ensure that a person supported with residential-care fees is left with at least £46.35 each week for personal spending.

Minimum income amount stated by the Welsh Government, checked July 2026.

Will I have to sell my home to pay for care?

Not necessarily. Whether a property is included depends on the type of placement, who continues to live in the property and the person's individual circumstances.

  • The value of a person's main home is generally disregarded during the first 12 weeks of a permanent care-home placement where the relevant conditions are met
  • A property may continue to be disregarded when it remains the main home of a spouse or civil partner
  • It may also be disregarded in certain circumstances involving another qualifying relative or dependent
  • Only the resident's beneficial share of jointly owned property should normally be considered
  • Additional properties and land may be treated differently
  • Property transfers or gifts made to avoid care fees may be investigated as deprivation of assets

Take advice before transferring assets

Do not give away or transfer money or property simply to reduce potential care fees. A local authority may assess someone as still owning an asset if it believes the asset was deliberately given away to avoid care costs. Obtain independent legal and financial advice before transferring assets.

The 12-week property disregard

Where a person enters a care home permanently and their main home would otherwise be included in the assessment, its value may be disregarded for the first 12 weeks. This can give the person and their family time to consider longer-term options.

  • Eligibility is assessed by the local authority
  • The disregard does not necessarily mean there will be no contribution from income
  • The treatment of Attendance Allowance and other benefits may change when public funding contributes
  • Selling the property during the period can affect the assessment
  • The exact start date and calculation should be confirmed with the local authority

Deferred payment agreements

A deferred payment agreement may allow eligible people to delay paying some care-home costs by securing the amount owed against a property. This can mean the property does not have to be sold immediately.

  • The local authority effectively defers agreed charges
  • The amount remains repayable
  • The debt is normally repaid later, often following the sale of the property or from the person's estate
  • Interest and administrative charges may apply
  • Eligibility conditions apply
  • The agreement is a legal financial arrangement
  • Independent legal and financial advice should be considered

A dedicated guide to deferred payment agreements in Wales is coming soon. Visit our Resources hub for related guidance.

NHS Continuing Healthcare

Continuing NHS Healthcare, often called CHC, is a package of ongoing care arranged and funded by the NHS for an adult who is assessed as having a primary health need.

  • It is based on assessed care needs rather than a particular diagnosis
  • It is not means-tested
  • It may be provided in a care home or another setting
  • When CHC funds a care-home placement, the NHS can cover accommodation and the person's assessed health and personal-care needs
  • Eligibility requires a formal assessment
  • Having dementia or another diagnosis does not automatically establish eligibility

Read our guide to NHS Continuing Healthcare in Wales →

NHS-funded nursing care

Where someone does not qualify for full NHS Continuing Healthcare but has been assessed as requiring care from a registered nurse in a nursing home, the NHS may make a contribution towards the nursing element of the placement.

  • This is different from fully funded CHC
  • It applies to eligible nursing-home residents
  • It is a contribution to nursing care rather than a payment directly to the resident
  • The health board or relevant NHS team determines eligibility
  • The amount and treatment of the contribution should be confirmed with the care home and NHS team

Attendance Allowance and care-home fees

Attendance Allowance is a non-means-tested benefit for people who have reached State Pension age and need help or supervision because of a health condition or disability.

Current rates for the 2026/27 benefit year

  • Lower rate: £76.70 per week
  • Higher rate: £114.60 per week
  • Savings and income do not affect entitlement
  • Self-funding care-home residents may usually continue to claim Attendance Allowance if they meet the eligibility conditions
  • Attendance Allowance cannot usually continue when the local authority pays for the care placement
  • Benefits may also be affected when care is funded through the NHS
  • The Department for Work and Pensions must be told when someone moves into a care home or their funding arrangements change
  • Individual advice should be obtained because benefit rules depend on how the placement is funded

Read our Attendance Allowance guide →

What does self-funding mean?

A self-funder pays the full care-home fee from their own income, savings or assets. Self-funders should:

  • Request a written fee schedule
  • Understand what is included in the weekly fee
  • Ask how and when fees may increase
  • Ask about deposits and notice periods
  • Understand charges during hospital stays or absences
  • Check whether nursing contributions are reflected in the fee
  • Consider regulated independent financial advice
  • Continue monitoring savings and contact the local authority before capital reaches the relevant threshold

What happens when a self-funder's savings are falling?

Contact your local authority well before capital approaches £50,000. Council support does not begin automatically.

  • A care and support assessment may be required
  • A financial assessment will usually be needed
  • The council will assess whether the placement meets the person's eligible needs
  • The care home's full private fee may be higher than the amount the local authority would normally pay
  • An additional-cost arrangement may therefore need to be discussed
  • Families should avoid waiting until funds are almost exhausted

Choosing a care home when the council contributes

The care home must be capable of meeting the person's assessed needs and be willing to enter into the necessary arrangement with the local authority. If the chosen home costs more than the authority would normally pay for suitable care, an additional cost may arise. This is sometimes informally described as a top-up fee.

  • This is separate from the resident's financially assessed contribution
  • In many circumstances another person may need to agree to pay it
  • The arrangement should be set out in writing
  • The person agreeing to pay should understand that fees may increase
  • Failure to maintain the payment could put the placement at risk
  • No agreement should be signed without understanding its long-term affordability

Not every more expensive home automatically requires a family top-up. The authority must consider whether suitable accommodation is genuinely available within its usual funding amount.

Read our guide to choosing a care home in Wales →

Questions to ask before agreeing to a placement

  • What is the full weekly fee?
  • What services are included?
  • Are there separate charges for activities, appointments, toiletries or personal care?
  • How often are fees reviewed?
  • What notice is given before an increase?
  • Is an additional-cost agreement required?
  • Who is legally responsible for paying each part of the fee?
  • What happens during a hospital stay?
  • What happens if the resident's money falls below £50,000?
  • Does the home accept local-authority-funded placements?
  • If nursing care is needed, how is NHS-funded nursing care handled?
  • What is the notice period for ending the contract?

Where to get help

Welsh Government

Official guidance about charging for social care in Wales.

Visit website

Local authority social services

Request a care-needs assessment, financial assessment or information about local funding arrangements. Visit your council's official website.

NHS Wales Continuing Healthcare

Official information about NHS Continuing Healthcare eligibility and assessments in Wales.

Visit website

Age Cymru

Independent information about care homes, care funding and later-life benefits.

Visit website

Citizens Advice

Independent support with benefits, money and care-related issues.

Visit website

Attendance Allowance

Official eligibility, rates and application guidance.

Visit website

Frequently asked questions

How much savings can I have before paying for care in Wales?
The current residential-care capital limit in Wales is £50,000. If capital is above this, the person may have to pay the full cost of their residential care. At or below the limit the local authority may contribute, although eligible income is still assessed.
Does being below £50,000 mean my care is free?
No. Most people receiving local-authority assistance are still expected to contribute from their eligible income, such as pensions and certain benefits.
Will I automatically have to sell my home?
No. A property may be disregarded temporarily during the first 12 weeks of a permanent placement, and it may continue to be disregarded where a spouse, civil partner or another qualifying relative still lives there. It depends on individual circumstances.
Is NHS Continuing Healthcare means-tested?
No. NHS Continuing Healthcare is based on whether the person has an assessed primary health need, not on savings or income.
Can I claim Attendance Allowance in a care home?
A self-funder may usually continue to claim Attendance Allowance if they meet the eligibility conditions. It cannot usually continue when a local authority pays for the care placement. Any change in funding should be reported to the Department for Work and Pensions.
What is a care-home top-up?
It is an additional cost that may arise where a chosen home costs more than the local authority is prepared to pay for suitable care. The arrangement must be affordable, documented in writing, and is normally paid by a third party.
What happens when my savings fall below £50,000?
The local authority may begin contributing after completing the necessary needs and financial assessments. This does not happen automatically, so contact your local authority well before capital approaches the threshold.
Can I give my house to my children to avoid care fees?
Transferring assets to avoid care charges may be treated as deliberate deprivation of assets, and the local authority may assess the person as still owning the asset. Obtain independent legal and financial advice before making any transfer.

Find care homes across Wales

Search residential and nursing care homes by location and care type. Review each home's details and contact the provider directly to discuss availability, fees and whether it can meet your needs.

Search all care homes Browse by countyBrowse by care type

Recommended reading

Information checked against official sources in July 2026. Funding rules, thresholds and benefit rates can change.