Labour’s announcement about the planned free social care service and recent conversations with clients prompted this article. The UK has been here before on social care reform, so it remains prudent to assume it will remain a cost borne by the individual.

Often, care needs become evident after a substantial health event, so a challenging time unfortunately can get more difficult.

Taking the average weekly nursing costs in London according to carehome.co.uk, and then rounding slightly we reach an average of £1,800 per week, or £93,600 per year. However, some homes charge well over £2,000. Further, at the point of need there may be a limited range of options that can provide the right support.

Planning for this moment can alleviate stress.

How likely is care?
Fewer people end up in a care home than you might think. Around 400,000 people live in UK care homes, roughly 0.6% of the population. Even among the over 85s, the 2021 Census found that 10.8% in England and Wales lived in a care home, and just 7.3% in London. Residents are split almost evenly between nursing homes and residential homes.

So care isn’t inevitable, but it is common enough to deserve a place in any retirement plan.

How long does it last?
The average stay is often quoted at around two years in a residential home, and closer to one year in a nursing home. Averages hide a lot of variation though, and some people need care for much longer. When Wealth Spring models care in a financial plan, we assume four years of costs. At £1,800 per week, the cumulative total is £374,400. It is a sobering figure, but far better known in advance than discovered later.

Who pays care home fees?
In England, if you have more than £23,250 in capital you will usually pay the full cost of your care home yourself. Your home normally counts towards this, which is why care fees and selling the family home are so often mentioned together.

However, your home is ignored if your spouse or partner still lives there, or a relative aged 60 or over, or your child under 18. It is also ignored for the first 12 weeks of a permanent placement.

If the council is funding your care but you would prefer a home that costs more than it will pay, a family member can make a top-up payment to cover the difference. That is a long-term commitment, and top-ups can rise each year.

For people with complex health needs, NHS continuing healthcare may pay for care in full. It isn’t means-tested, but the bar is high.

Talk about it before you need to
In my view, the most useful thing a family can do is talk about care before it is needed. How would care needs be met, at home with support or in a care home? Which homes, and in which area? Who would help make the decisions?

These conversations are awkward, but they are far easier over Sunday lunch than in a hospital corridor.

The final word
Care consultants can help families find, assess and arrange the right care, often at short notice. Our role is to make sure the money is there when it is needed, and that paying for care doesn’t undermine the rest of the plan, such as a surviving spouse’s retirement. If care is on your mind, for yourself or your parents, it is a conversation worth having early.

Sources
1.    carehome.co.uk – Care home cost guide to London 2026

2.    ONS – Older people living in care homes in 2021 and changes since 2011

3.    ONS – Population estimates for the UK: mid-2024

4.    British Geriatrics Society – End of life care in frailty: care homes

5.    GOV.UK – Social care charging for care and support 2026 to 2027

6.    Age UK – Factsheet 38: Property and paying for residential care

7.    NHS – NHS continuing healthcare

The information contained within this article was accurate at the date of publication and is subject to change.