Are next of kin responsible for care home fees?

The question of who is financially responsible for care home fees can be confusing and cause worry, particularly for families supporting a loved one in their own home who start to notice an increase in their care needs. 

While most people believe that next of kin are automatically liable for care home fees, the situation is more nuanced. Understanding who is responsible for paying care home fees, the legal obligations of family members and who you can speak to about it can relieve the confusion and uncertainty around this topic.

At Anchor, we have over 60 years of experience providing high quality care and housing. In this article, we'll explore when next of kin are held responsible for care home fees, and provide reassurance and clarity to help both those in need of residential care and their loved ones.

Who is responsible for care home fees?

In the UK, it is usual for residents living in care homes to contribute towards the cost of their own care.

Some people have the resources to pay for their care in full, whilst others make means-tested contributions.

The government sets national limits that determine eligibility for funding assistance. The current (2025) threshold for self-funding (paying the full cost of your own care) is £23,250. Individuals with assets, including property and savings of £23,250 or above are currently expected to fully fund their own care.

This threshold can be subject to change, so it’s always advisable to check this when choosing a care home.

Individuals moving into a care home with assets below this amount may be eligible for funding from the local authority, though specific rules apply.

What about next of kin paying for care home fees? 

It’s important to note that next of kin, typically the closest family members, such as children or a spouse, are not legally responsible for paying care home fees unless they’ve agreed to such terms in a financial contract with the care home. The financial responsibility of relatives remains minimal unless they sign an agreement to guarantee care home fees for someone else.

Can next of kin be liable for care home fees?

As noted above, next of kin are not legally obligated to pay care home fees. However, the situation becomes more complex in certain circumstances and common queries can arise around the impact of having joint assets or power of attorney.

If family members co-own property or have shared or joint financial assets, this can sometimes affect a person’s eligibility for support from their local authority towards care fees.

It’s also important to understand that if a next of kin has been granted power of attorney (also known as a Lasting or Enduring Power Of Attorney for Property and Finance) they may manage the person’s financial affairs but are not personally liable for their loved ones debts.

Guarantor agreements

Next of kin can be held liable for care home fees if they sign a guarantor agreement with a care home on behalf of a resident. Signing a guarantor agreement makes the signatory legally liable for the payment of fees in the event of non-payment by the individual living in the care home. This is true whether you are the next of kin or not.

Inheritance of unpaid debts

If a person receiving care passes away with unpaid care fees, the debt owed to the care home will be deducted from their estate. While next of kin are not liable for these debts, this could reduce the inheritance they receive - if there is any.

Understanding the details of the legal responsibilities of being a guarantor and knowing when you can be liable for care home fees is important to ensuring that families do not unintentionally assume financial obligations.

The role of local authorities in care funding

Local authorities support individuals who cannot afford to pay their care fees. Based on the value of your assets and income, means testing will determine whether you qualify for financial support. If eligible, the local authority may contribute to the cost of care.

For those who think they may be eligible for care home funding support, the first step is to speak to your local Social Services department or GP.

An assessment of your care needs will be undertaken and, if it is determined that you require residential care, a financial assessment will be completed by Social Services. As this financial assessment is based on the assumption that you are claiming all the benefits available to you, it is important to make sure that you are. View our benefits entitlement calculator to see what benefits you could claim. 

Disclosing financial information accurately 

Local authorities will only cover the cost of care up to a certain level, and individuals are expected to contribute toward fees if their assets fall within the means-tested range. To avoid potential complications, it's essential to ensure that all financial information is disclosed accurately.  

NHS continuing healthcare funding (CHC funding) 

In some cases, NHS continuing healthcare (also known as CHC) may also cover the cost of care for those with significant ongoing medical needs. 

NHS continuing healthcare is a package of care which is arranged and funded solely by the NHS Clinical Commissioning Group (NHS CCG) for individuals outside hospital who have ongoing physical, mental health or healthcare needs arising from a disability, accident or illness. 

If an overall assessment of care needs shows that an individual has a ‘primary health need’, they could be eligible for NHS continuing healthcare funding. In a care home, if someone is eligible for NHS continuing healthcare funding, the NHS CCG would pay the care home fees. 

You can find out more about this on our guide to care home fees here.

Managing family expectations for care home fees

Discussing care home fees can be challenging, and often, family members have different expectations about which care home is the best fit for a loved one and who should contribute financially and to what extent. 

Talking to family about care home fees

Open communication is key to ensuring everyone is on the same page. Early conversations about finances can prevent misunderstandings and ensure that decisions are made collaboratively and carefully.

Encouraging a transparent discussion about the long-term care needs of the person considering a move to a care home is also helpful. Ensuring all family members understand the costs involved in residential care and the importance of planning for the future can help ease tensions during emotionally charged times.

We have a range of different free guides that provide help and advice on how to start conversations with your family members about care home finances. Why not read our tips on starting difficult conversations when planning for retirement or perhaps this article on checking care home quality standards to find a good icebreaker for your conversation.

Seeking professional advice about care home fees

If you’re unsure about any aspect of care funding, consider seeking professional advice. A law solicitor or financial planner can clarify and help structure a plan that works for your family. They could also answer any specific questions you may have relating to joint or shared assets.

Learning about care home fees with Anchor 

Care home fees in England can vary substantially from provider to provider and from location to location. At Anchor we have over 120 homes across England offering a range of services and facilities. Like all providers, our weekly fees vary depending on where the care home is, the type of room offered and care services required, however we pride ourselves on being transparent about what our fees include.

You can read more about care homes fees here and our care home management teams are always on hand to answer any questions you may have about living with Anchor.

More information

For more information on funding assistance, including details of the current capital limits, visit Gov.uk, the Government’s public services information website, or speak to your local Social Services department or GP.

Further advice and guidance can also be found on the Disability Rights UK website, including a range of free factsheets covering topics such as how to apply for an assessment from social services, care charging and changing legislation.