The huge financial cost of meeting care home fees is taking an emotional toll on an increasing number of retirees, new research from Which? shows.

Prime Minister Andy Burnham has vowed to fix England’s “broken” social care system. A survey of 2,000 adults carried out by the consumer champion, that included 263 retirees, underlines the scale of the challenge Brits face as they look to a time in life when they could require care.

Sam Richardson, Which? Money Editor, said: “Our research has shown that increasing numbers of retirees are concerned about how they would cover the cost of care should they require it in future, with a care home bill likely to extend into the tens of thousands of pounds per year.”

Care in a residential home typically costs £1,300 per week in Britain if you pay for it yourself, according to data from the care-finding service Lottie.

How much you pay depends on the type of care needed as well as where you live. Nursing care costs on average £1,512 per week, while nursing dementia care – which is typically the most extensive kind of support – costs £1,585. Costs, however, vary widely depending on region.

Of the UK retirees Which? surveyed in May, 55% said they are concerned about affording care in the future, up from 46% in 2024 and 51% last year.

It is no surprise concerns over how to cover the cost of care are rising given that this has been rising faster than inflation for a number of years.

The challenge of knowing how long a person will be in a care home adds to the uncertainty and hampers efforts to calculate the total bill.

The British Geriatrics Society reports average life expectancy as 24 months in care homes without nursing and 12 months for those with nursing. However, everyone’s health is different.

If money runs out, local authority funding does kick in, but in some situations this may mean moving care homes at a time when doing so could leave a person anxious and afraid.

Research from social care consultancy Carterwood found that across Britain the average quoted weekly fee for personal residential care for self-funders rose 8.5% between 2024 and 2025.

Rising wages and the increasing cost of food and energy have increased the cost of providing care in recent years, but other factors are at play.

For years, there has been a substantial gap between the fees paid by self-funders and local authorities, as councils on tight budgets face rising demand for services.

The majority of care homes in the UK are run by private companies. Researchers have warned that funds are leaking out of the care system, rather than being reinvested to improve services.

Analysis by Reclaiming our Regional Economies in 2025 found private care companies delivering public-sector-funded care in the North East, South Yorkshire and West Midlands made £256million profit between 2021 and 2024.

Despite providing a vital service, care workers are some of the lowest paid across the job market.

The Joseph Rowntree Foundation has warned turnover related to low pay is a huge drain on the social care sector, from the cost of covering vacancies to time lost to hiring and training staff.

Mr Burnham’s possible options for reform range from a basic level of free personal care for all, which is similar to what is offered in Scotland, to a cap on care costs or an NHS-style care system that is free at the point of use.

The Casey Commission – which was launched last year to review social care in England – has been brought forward, with final recommendations due in 2027.

But there is no guarantee Baroness Casey’s recommendations will be implemented and, if they are, it may take years to bring them in.

A previous proposal by Boris Johnson‘s government to cap care costs at £86,000 per person was postponed and eventually ditched after it was deemed unaffordable.

Mr Richardson said: “It’s essential that if your care needs, or those of a loved one, are developing, that you seek advice on possible funding available.

“Depending on your personal savings, you may qualify for local authority funding and in some cases you may be eligible for support under the NHS continuing healthcare (CHC) scheme.

“If you are required to self-fund, it’s worth exploring all the options available, from cover under existing health insurance to an immediate needs annuity.”

Will I be eligible for help?

If you need care, there are three ways you might pay for it: local authority funding, NHS funding (in certain cases) or from your own savings.

Local-authority funding is means-tested and how much support you will receive depends on your savings, assets and income.

You will qualify for full support if your savings are below the lower capital limit, but you will likely have to contribute some of your income (including the State Pension) towards the cost of care.

The table below shows the capital limits across the UK for 2026-27.

If your savings are between the two limits, you’ll also have to pay a tariff income of £1 a week for every £250 of savings.

You must be allowed to keep a certain amount for day-to-day spending, known as the personal expenses allowance (or minimum income amount in Wales).

The 2026-27 allowances are:

England: £31.80

Northern Ireland: £36.62

Scotland: £37.65

Wales: £46.35

What do I need to know about paying for care?

1. Check whether you’re eligible for local authority funding

If you need care, the first step is to contact your local authority for a needs and financial assessment, even if you think you might need to pay your own care fees.

This is because the needs assessment may offer solutions other than moving into a care home, or show you’re eligible for NHS funding.

And owning a home doesn’t automatically disqualify you from support: the value of your home usually isn’t included in the means test if you receive care at home, or if certain people still live there (a spouse or civil partner, relatives aged 60 or over, disabled relatives, your children under the age of 18 or an estranged/divorced partner if they’re a lone parent).

In Scotland, everyone who needs it is entitled to free personal and nursing care from their local authority, which can help cover some of your care home fees. Visit mygov.scot for more information.

2. Understand other forms of support

If your needs are primarily health-related, you may qualify for support under the NHS continuing healthcare (CHC) scheme in England, Wales and Northern Ireland.

This funding isn’t means-tested, but the chances of receiving it are slim: in the first quarter of 2026-27, just 18% of those assessed for standard continuing healthcare in England were deemed eligible.

NHS CHC isn’t available in Scotland, but the NHS may pay for ongoing care in a hospital setting, depending on your needs.

If you receive care in your home, you may be eligible for free home adaptations, such as handrails and wheelchair ramps, as long as they cost less than £1,000 each.

And make sure you’re receiving all the benefits you’re entitled to: attendance allowance and pension age disability payment in Scotland aren’t means-tested, and provide support with care costs.

3. Consider your options for self-funding

If you need to pay for your own care, there are various options to consider. If you already have health insurance or long-term care insurance, this can help cover the costs.

An immediate needs annuity provides a guaranteed monthly income to cover the costs of long-term care. Unlike income from standard annuities, the money is paid directly to the care provider and isn’t taxed.

You won’t usually get your original payment back if you no longer need care, so you should consider seeking financial advice if you’re considering this option.

In some cases, you may need to sell your home to cover the costs of care. If you don’t want to sell your home straight away, you may be able to get a deferred payment agreement from the local council.

Under this agreement, the council pays your care fees, and you don’t have to repay them until you’ve sold your home or after you’ve died.

A financial adviser can help you understand your options for paying for care, and the rules around how moving into a care home will affect your income and benefits.

The Society of Later Life Advisers accredits advisers who are specialised in later-life planning and the financial needs of older people.