Care Home Fees Explained: What You Will Actually Pay

One of the first things families want to know when they start looking at care homes is what it will actually cost. It is a reasonable question, and yet it is one our sector is not always good at answering clearly. Fees vary, funding routes are complicated, and many families find themselves piecing together information from multiple sources at an already stressful time.

This guide sets out what our care home fees cover, what determines the cost, and how much you can realistically expect to pay at our homes in Lincolnshire and the Isle of Man.

What do care home fees actually cover?

A weekly care home fee is not just rent. It covers the full cost of living and being supported in the home, including:

• Accommodation: your room, utilities, heating, and use of all communal spaces
• All meals and refreshments throughout the day
• Personal care: help with washing, dressing, mobility, and toileting
• Medication management and administration
• Laundry and housekeeping
• Activities, entertainment, and outings
• 24-hour staffing

What fees typically do not cover are personal extras: hairdressing, chiropody, trips, toiletries, clothing, and any specialist services not included in the care plan. When you enquire with us, we will be clear about exactly what is and is not included.

How much does care home care cost at Pearl Healthcare?

Our current weekly fees start from:

• Kimberley Care Village, Long Sutton, Spalding: from £1,100 per week
• Sunnydale, Douglas, Isle of Man: from £925 per week
• Capricorn Cottage, Fleet, Holbeach: contact us for current fees

Across our homes, our average weekly fee for residential care is approximately £1,013, and for residential dementia care approximately £1,088.

These are starting figures for self-funded residents. The actual fee depends on the level of support required, room type, and specific care needs. A resident needing minimal assistance will not pay the same as someone requiring full personal care and specialist dementia support.

"Families often come to us worried about costs before they have even seen our homes. We always sit down and go through the numbers honestly, including what funding might be available, before anyone feels any pressure to make a decision. Getting the finances clear early means families can focus on what actually matters." — Pearl Healthcare

What affects the cost of care?

Several factors determine what you will pay.

Level of care needed. The more support required, the higher the fee. Someone who needs help getting dressed and managing their medication sits at a different cost point to someone needing 24-hour specialist dementia care or end-of-life support.

Type of care. Dementia care typically costs more than standard residential care because of the specialist staffing, training, and environment it requires. Palliative care may also carry additional costs as needs intensify.

Room type. We offer a range of rooms across our homes. Single en-suite rooms typically carry a higher fee than standard rooms. We can walk you through the options at whichever home you are considering.

Location. Our Lincolnshire homes sit broadly in the mid-range nationally, while our Isle of Man home operates under a different regulatory and cost structure.

Who pays for care home fees?

This is where many families get confused, because the answer depends on personal finances, health needs, and where in the UK the person lives.

Self-funding

If the person moving into care has assets above the upper capital threshold, they are expected to fund their own care. In England, this threshold is currently £23,250. Below this figure, you may qualify for local authority support. [FLAG: confirm threshold is current at time of publishing]

Self-funders typically pay a higher weekly rate than local authority-funded residents. This is a longstanding and widely criticised feature of the care home sector, but it is the reality families face.

Local authority funding

If assets fall below the upper threshold, the local authority carries out a means test and a care needs assessment. If eligible, they will fund care up to their standard rate. If our fees exceed that rate, families may be asked to pay a top-up to cover the difference.

Local authority funding takes time to arrange. If a move into care is urgent, families often self-fund initially and apply for local authority support retrospectively.

NHS Continuing Healthcare (CHC)

NHS Continuing Healthcare is full funding provided by the NHS for people whose primary need is health-related rather than social care. If eligible, the NHS covers the entire cost of care, including accommodation.

CHC is assessed using a Decision Support Tool that looks at the nature, complexity, intensity, and unpredictability of a person's needs. Applications are sometimes declined on first submission. It is worth pursuing if you believe your loved one may qualify, and we can advise on this process when you contact us.

NHS-funded Nursing Care (FNC)

For people in nursing homes who are not eligible for full CHC but have nursing needs, the NHS pays a flat weekly contribution known as Funded Nursing Care. This is paid directly to the home and reduces the overall fee.

Deferred Payment Agreements

If the person moving into care owns a property, the local authority may offer a Deferred Payment Agreement. This allows care costs to be funded against the value of the property, repaid when the property is eventually sold. It prevents families from having to sell a home urgently to fund care.

What is a third-party top-up?

When a local authority funds care but the family chooses a home that charges more than the authority's standard rate, someone needs to make up the difference. This is called a third-party top-up, paid by a family member rather than the resident themselves.

Top-up arrangements need to be documented formally. The local authority must agree to the arrangement, and the person paying must be able to sustain payments over time. If you are in this position, we will guide you through what is required.

Will fees increase over time?

Our fees typically rise annually, usually in April, broadly in line with increases to the National Living Wage and general operating costs. We give families clear notice of any fee increases and explain the reasons behind them.

When you enquire with us, ask about our typical pattern of fee increases and how much notice we give. Understanding this helps you plan financially for the longer term.

What should you ask when enquiring about fees?

When you contact us, these are the questions worth asking directly:

• What is the weekly fee for the level of care my loved one needs?
• What is and is not included in that fee?
• Are there additional charges I should be aware of?
• What is the typical annual fee increase?
• Do you accept local authority-funded residents?
• Do you accept NHS Continuing Healthcare-funded residents?
• Is there a third-party top-up arrangement if there is a shortfall between the local authority rate and your fees?

We welcome these questions. Clarity on costs is part of getting the decision right, and we will never make you feel awkward for asking.

Getting independent financial advice

For families with more complex situations, including property ownership, existing assets, and pension income, it is worth speaking with an independent financial adviser who specialises in care funding. They can model different scenarios and help you understand the most efficient way to fund care.

Your local authority social services team can also carry out a financial assessment and care needs assessment, both of which are free.

Talk to us about fees

To discuss current fees, availability, and funding options at any of our homes in Lincolnshire or the Isle of Man, contact the Pearl Healthcare team or call us directly. We will give you a straightforward breakdown with no jargon and no pressure.

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