Care home fees - Who pays?

If you need residential care in a care home your local authority may ask you to pay towards the cost. This section looks at local authority rules on charging for residential accommodation. This section is an overview because the rules are complicated. This section is for people with mental illnesses and their carers.


  • Your local authority will do a financial assessment to work out if you must pay towards the care home cost.
  • Depending on your income and capital, you might have to pay all or part of your care home costs, or nothing at all.
  • Your local authority should only charge you if you can afford to pay.
  • They shouldn’t charge you for residential care services if you get free aftercare under section 117 of the Mental Health Act 1983.
  • If you aren’t happy about how much your local authority is charging you, you can take action.

We know that money and mental health problems often go hand in hand. That’s why Rethink Mental Illness, as part of Mental Health UK, have set up a new website. It will help you understand, manage and improve your mental and financial health. You can find a wide range of information to help you with your benefits.


Visit the Mental Health & Money Advice site now 

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