Do Dementia Sufferers Have to Pay Care Home Fees?
A complete, up-to-date guide to who pays for dementia care in the UK, how much it costs — in a care home and at home — and every funding route available to you.
In most cases, yes — dementia is generally treated as a social care need in the UK rather than an automatic NHS-funded medical need, so most people with dementia pay some or all of their care home fees. Funding is available through NHS Continuing Healthcare (fully funded, based on health need, not means) and local authority support (means-tested, for those with savings below £23,250) — so not everyone pays the full cost themselves.
This guide is general information, not financial or legal advice. Thresholds, benefit rates and eligibility rules change and vary by nation and circumstance — always confirm current figures with your local authority, the NHS, or a qualified financial/legal adviser before making decisions.
Dementia affects an estimated 982,000 people in the UK — Alzheimer's disease is the most common form, alongside vascular dementia and others, and all are covered by the same funding rules described below. Dementia care is sometimes called memory care or, within nursing homes, EMI care ("Elderly Mentally Infirm" — a UK care-sector term for specialist dementia nursing units). It's also one of the most common reasons families search for frail care support, as needs increase over time. One of the first questions families ask is how much care will cost — and who is responsible for paying it. This guide covers care home fees, home care costs, the financial assessment process, NHS funding, and every benefit and support scheme available in 2026.
In this guide
- How much does a dementia care home cost?
- How much does dementia care cost at home?
- Do you have to pay? The financial assessment
- NHS Continuing Healthcare (CHC)
- Local authority funding
- Self-funding & the Deferred Payment Scheme
- Benefits and additional support
- The lifetime cost of dementia care
- How to plan for dementia care fees
- Frequently asked questions
How Much Does a Dementia Care Home Cost?
Dementia care home fees vary widely across the UK, depending on the type of care (residential, nursing, or respite), the specific home, and the region — dementia care generally costs more than standard residential care because of the specialist staffing and secure environments involved.
Costs vary by region — London and the South East are typically highest, the Midlands, North and Wales typically lowest. These figures apply equally to Alzheimer's care, vascular dementia care, and other forms of dementia — cost is driven by the level of support needed, not the specific diagnosis.
You may also see nursing homes advertise "EMI care" or "EMI nursing care" — this stands for "Elderly Mentally Infirm," a UK care-sector term for a specialist unit trained specifically in dementia and cognitive impairment. EMI nursing care sits within the nursing dementia care category above.
How Much Does Dementia Care Cost at Home?
Many families choose to keep a loved one with dementia at home for as long as possible — it's often more affordable in the early stages, and familiar surroundings can genuinely help someone living with dementia feel calmer and safer.
Cost generally increases with the stage of dementia, since later stages need more hands-on, specialist support:
- Early-stage: companionship, medication reminders, light personal care — the lowest hourly rate band
- Mid-stage: hands-on personal care, closer supervision, routine support — a mid hourly rate band
- Late-stage: intensive personal care, mobility support, higher supervision needs — the highest hourly rate band
Do You Have to Pay? The Financial Assessment
Whether someone with dementia pays for care is decided by a financial assessment (means test) carried out by the local council, looking at savings, assets, and income.
| Capital (savings & assets) | What happens |
|---|---|
| Above £23,250 | Self-funding — you pay the full cost of care |
| £14,250 – £23,250 | Partial local authority support on a sliding scale |
| Below £14,250 | Capital is ignored; maximum local authority support (income still assessed) |
For residential care, the value of the person's home is usually included as an asset (unless a spouse, partner, or certain dependent relatives still live there). For care received at home, the value of the home is not counted.
These thresholds apply to England. Wales operates a higher upper capital limit (currently £50,000), and Scotland and Northern Ireland have their own separate rules — check with your local authority for the figures that apply in your area. Source: gov.uk — Paying for your own care (self-funding); Age UK — Paying for care.
NHS Continuing Healthcare (CHC)
For those with severe dementia and complex health needs, NHS Continuing Healthcare (CHC) can fund the full cost of care — including care home fees — regardless of savings.
Based on health need, not money
A multidisciplinary team assesses the nature, complexity, intensity and unpredictability of the person's health needs. Dementia alone rarely qualifies — the person must have a "primary health need," which is more common in advanced dementia with complex medical needs.
Fully funded if eligible
If approved, CHC covers the full cost of care — in a nursing home, residential home, or at home — with no means test involved. Qualifying can be difficult, so it's worth requesting a formal CHC assessment even if a first screening suggests it's unlikely.
Local Authority Funding
If CHC doesn't apply and financial resources are limited, the local authority may help fund care after two steps:
Needs assessment
The council assesses the level of care required, based on the person's ability to manage daily activities and their overall health.
Means test
If care is needed, a financial assessment determines how much the council will contribute, based on the capital thresholds above.
The council sets a "standard rate" it will pay toward a care home. It must offer at least one suitable home within that budget — if it can't, it must fund a more expensive one, with no top-up fee required from the family in that case.
Self-Funding & the Deferred Payment Scheme
Those above the £23,250 threshold, or who don't qualify for CHC or local authority support, will need to self-fund their care.
If most of the available capital is tied up in the family home, the council may offer a Deferred Payment Scheme — a loan secured against the property, so care fees don't have to be paid until the home is eventually sold. This means a person is never forced to sell their home immediately to pay for care.
Some families also look into equity release (sometimes searched as a "dementia care mortgage") — a lifetime mortgage secured against the home that can release funds for care costs without an immediate sale or move. Equity release is a regulated financial product with long-term implications, so it should only be arranged through an FCA-regulated adviser, not decided from a guide like this one.
Benefits and Additional Support
Even self-funders may be able to claim benefits that help offset the cost of dementia care:
- Attendance Allowance — a tax-free, non-means-tested benefit for those over State Pension age who need help with personal care
- Personal Independence Payment (PIP) — for those under State Pension age needing help with daily living or mobility
- Carer's Allowance — for a family member providing unpaid care for 35+ hours a week
- Severe Mental Impairment (SMI) Council Tax exemption — a person with a dementia diagnosis confirmed by a GP may be disregarded for Council Tax, which can mean a 25–100% reduction depending on the household
The Lifetime Cost of Dementia Care
Because dementia is progressive, care needs — and costs — tend to rise over time. According to the Alzheimer's Society, families and individuals cover a significant amount in dementia care costs over a lifetime, with more complex cases reaching considerably higher — fill in our care assessment for a personalised estimate based on your circumstances.
How to Plan for Dementia Care Fees
Get a care needs assessment
Free through your local council — it clarifies what level of support is actually needed.
Request a CHC checklist
Ask your GP, social worker or hospital discharge team for an NHS Continuing Healthcare checklist — it costs nothing to check eligibility.
Understand your funding position
Work out where you sit against the £14,250 / £23,250 thresholds to know what support may apply.
Compare home care and care home costs
For many families, staying at home with visiting or live-in care is both more affordable and better for someone with dementia in the earlier stages.
Get independent financial advice
A care fees specialist or financial adviser can help structure savings, benefits and any property decisions.
Frequently Asked Questions
Do dementia sufferers have to pay care home fees?+
In most cases, yes — dementia is treated as a social care need rather than an automatic medical one, so most people pay some or all of their care home fees. Full NHS funding via Continuing Healthcare is only available to those assessed as having a "primary health need," and local authority support is means-tested for those with savings below £23,250.
How much does dementia care cost in the UK?+
Dementia care home fees vary by region and level of care — nursing care costs more than residential care, and home care (visiting or live-in) is often more affordable than a care home, especially in the early stages. Fill in our short care assessment for a personalised cost estimate.
How much does in-home dementia care cost?+
In-home dementia care is typically priced per hour for visiting care, or per week for full-time live-in care. Costs rise with the stage of dementia and the level of hands-on support required — fill in our short care assessment for a personalised quote.
Do dementia patients get free care home fees?+
Not automatically. Care home fees are only fully covered by the NHS through Continuing Healthcare, which is based on complex health need rather than a dementia diagnosis alone. Otherwise, local authority support is means-tested, so only those with savings below £23,250 receive help, and only those below £14,250 receive maximum support.
What is the capital threshold for care home funding in the UK?+
In England, the upper capital threshold is £23,250 — above this, you self-fund in full. The lower threshold is £14,250 — below this, capital is ignored and maximum local authority support applies, with income still assessed. Between the two, support is provided on a sliding scale.
Can the NHS pay for a parent's care home?+
Yes, if they qualify for NHS Continuing Healthcare — a fully funded package for those with complex health needs, assessed by a multidisciplinary team regardless of savings. Qualifying can be difficult with dementia alone, so it's worth requesting a formal assessment via a GP or social worker.
Do I have to sell my parent's house to pay for dementia care?+
Not immediately. If most of their capital is tied up in the family home, the council's Deferred Payment Scheme allows care fees to be paid later, using the property as security, so it doesn't need to be sold straight away. The home is also excluded from the means test entirely if a spouse, partner, or certain dependent relatives still live there.
How much does Alzheimer's care cost?+
Alzheimer's disease is the most common form of dementia, and its care costs the same as dementia care generally — priced by the level of support needed, not the specific diagnosis. See our care home and home care cost sections above, or fill in our short care assessment for a personalised quote.
Can I reclaim care home fees already paid for dementia care?+
Sometimes. If an earlier NHS Continuing Healthcare decision is believed to have been incorrect, it's possible to request a retrospective review through the NHS/Integrated Care Board. This is a formal, case-by-case process rather than a guaranteed outcome, so it's best explored with independent specialist advice — a CHC claims adviser or solicitor — rather than relied on as certain.
Is home care cheaper than a dementia care home?+
Often, yes — especially in the early stages. A few hours of visiting care a week is typically far cheaper than residential care, though full-time live-in care can cost a similar amount to a care home. Home care also allows someone with dementia to stay in familiar surroundings, which can help with orientation and wellbeing.
Sources & further reading
Funding rules and cost context in this guide are gathered from the following sources, correct as of 2026:
- NHS — Dementia care and support: care homes
- Age UK — Homecare: how to find the care you need
- Alzheimer's Society — Paying for care home fees
- gov.uk — Paying for a care home
- Lottie — Dementia care home costs in the UK
- Elder — How do I pay for dementia care?
- Home Instead — The cost of dementia care at home
Figures vary by region, provider and personal circumstances — always confirm current rates directly with your local authority, the NHS, or a qualified adviser, or fill in our short care assessment for a personalised quote from Haverhill Home Care.
Not sure where you stand? We can help you work it out.
Haverhill Home Care provides CQC-regulated dementia care at home across Haverhill and Suffolk — from a few hours a week to full-time live-in support. Speak to our team for a free, no-obligation conversation about care and funding options.
