Care Home Costs 2024

A report by the Competition and Markets Authority in 2017 found care homes may use higher private fees to cross-subsidise residents funded by councils, who often pay lower rates that don't cover full costs.

Research suggests around 40% of care home places are occupied by people funding their own care, with councils funding the remainder. If private rates are higher, this supports the notion of cross-subsidisation.

Cuts to council budgets over the past decade are thought to have put pressure on the care system. Higher private-payer fees may have cushioned some of this impact. However, the degree of cross-subsidisation is difficult to accurately quantify. Care homes operate on tight budgets, so there are limits to cross-subsidy in practice.

Based on the research, here are the approximate average monthly costs for residential care homes for older people in each part of the UK:


The average cost for a residential care home is around £650-£700 per week.

This equates to roughly £2,800-£3,000 per month.


The average weekly fee for local authority-provided care homes is £636, while private sector homes average £866 per week.

Monthly costs range from around £2,750-£3,750 on average.


Residential care fees average approximately £600-£800 per week depending on the region.

Monthly costs are in the range of £2,600-£3,500.

Northern Ireland

Average residential care home fees are roughly £550-£650 per week.

This works out to around £2,400-£2,800 per month.

So, in summary, monthly costs for residential care typically range from £2,400-£3,500 across the UK, with England at the higher end and Northern Ireland at the lower end. Significant regional variations exist within each country as well. Quality, size and location of the care home impact fees. Overall, care home fees continue to rise each year above inflation in all parts of the UK.

Here are the approximate average monthly costs for privately funded residential care homes for older people in each part of the UK:


Private pay residential care homes cost around £700-£1,000 per week on average.

Monthly fees range from £3,000-£4,300 typically.


Average weekly fees for private care homes are £866.

This equates to roughly £3,750 per month.


Private pay care homes cost approximately £750-£950 per week.

Monthly fees are around £3,250-£4,100.

Northern Ireland

Weekly fees for private residential care average £650-£750.

Monthly costs are in the range of £2,800-£3,250.

In summary:

England - £3,000-£4,300 per month

Scotland - £3,750 per month

Wales - £3,250-£4,100 per month

Northern Ireland - £2,800-£3,250 per month

Privately funded care is more expensive than local authority-funded care. There is significant regional variation within each country too. The costs reflect higher quality amenities and services in private care homes compared to basic local authority provision. In all parts of the UK, residential care fees continue to rise faster than inflation each year.

MMA Healthcare Recruitment