Last updated 20 October 2026
A guide to care home contracts
A care home contract sets out key details about the care you'll receive, and the fees you'll pay when moving into a residential setting.
Choosing a care home is an important decision, and understanding the terms of your contract will help you and your loved ones feel confident and well informed ahead of your move.
In this guide, we explain what a care home contract in the UK should include, what to look out for, and the questions you should ask before signing.
In this guide you’ll find:
- What is a care home contract?
- Why are care home contracts important?
- What a good care home contract includes
- Important questions to ask about your contract
- Whose responsibility it is to sign a care home contract?
- How care home funding assistance impacts the contract
What is a care home contract?
A care home contract is an agreement between the resident or the person responsible for arranging their care, and the care home. It sets out the terms of the stay, including:
- Care and services provided
- Care home fees
- The responsibilities of the care home
- Your obligations to the care home.
Contracts will vary between different care home providers, so it's important to read the document carefully and make sure you understand what is included before signing – even if you have stayed in another care home before. If you're unsure of anything ask the care home to explain it to you.
At Anchor care homes, our caring and professional staff will be happy to go through everything with you in detail and welcome questions.
Why are care home contracts important?
Care home contracts are important as they protect both the resident and the provider by:
- Preventing unexpected costs
- Setting out levels of care and service provided
- Outlining clear terms for ending the contract.
They help you understand what's included in your care home fees, what the care home is responsible for, and what happens if your circumstances change. Taking the time to understand your contract before committing can help avoid misunderstandings further down the line and ensure you know exactly what to expect.
What a good care home contract includes
A thorough care home contract should include the following information:
- The contract start date
- Who is funding the care (privately funded, local authority funded or NHS continuing healthcare funding)
- Weekly / monthly costs and what they cover
- How and when payments will be made
- Details of the room, communal areas and facilities available to residents
- What’s not included (extra charges for additional services like hairdressing)
- References to personal care plans and details of how often they will be reviewed
- Details of annual fee reviews / increases where this applies, including how much notice you will receive
- How overpayments or refunds will be made
- Information around trial periods
- Details on temporary absences and if fees apply during a hospital stay
- What happens if the care home or resident wishes to end the contract including notice periods for both
- Information around raising concerns if needed
- Any other important terms and conditions of the contract.
Before signing your contract, make sure you have read it carefully and understand the terms, asking the care home to explain anything you're unsure about. A good home will always be happy to answer any questions you may have and will want to ensure you understand the agreement fully.
Important questions to ask about your contract
Even if the contact appears straight forward on your first read, it can be helpful to check you have the answer to the questions below and make sure nothing is missing from the document:
- What is included in the weekly or monthly fee? E.g. type of care, accommodation, catering, activities and additional facilities.
- Does anything require an additional charge?
- Is a deposit required? (No upfront deposit is required at any of Anchor's care homes to secure a room. However if you're approaching a number of care home providers it is often good to ask if they require a deposit. Learn more about our care fees here.
- Will the fees increase over time?
- What happens if my needs change?
- Who is responsible for paying the fees?
- What happens if my funding changes?
- Is there a notice period?
- What happens if I need to leave the home temporarily due to a hospital stay?
- Can someone else review the contract with me?
Taking the time to consider and ask these questions can help you understand your rights, responsibilities, and fees before signing the contract. It also gives you the opportunity to make sure the care provided reflects what you need.
Whose responsibility it is to sign a care home contract?.jpg)
A contract needs to be signed before a person can move into a care home. Who signs the care home contract can differ depending on individual circumstances.
If a resident is capable of understanding and agreeing to a contract, then they will sign it themselves.
If they can no longer do this, someone with appropriate legal authority can sign on their behalf. This can be a representative who signs on the behalf of a resident under the authority of the Court of Protection (as Deputy) or who has Enduring or Lasting Power of Attorney (Property & Finance).
A representative that does not have legal authority for a resident may sign a care home contract on their behalf only if they agreed to sign as a guarantor. Signing a guarantor agreement makes the signatory legally liable for the payment of care home fees in the event of non-payment by the resident. You can read more about guarantor agreements in our article exploring when next of kin may be responsible for care home fees.
Care home funding assistance and how this impacts the contract
It is usual for residents in care homes to contribute towards the cost of their own care home fees. Some people have the resources to pay for their care in full, whilst others make means-tested contributions.
There are different types of funding support available and this may impact who is involved in the contract and what details it should include.
- Privately funded residents: If you are paying for your own care, you or someone legally acting on your behalf, such as a Lasting Power of Attorney (LPA), will agree to the contract and payment terms.
- Local authority funding: If the local authority is contributing towards your care, additional arrangements may be required between the council, you and the care home, however you or your LPA will still need to sign the care home contract.
- Local authority funded with a third-party top-up fee: If the local authority is going to be paying some of your care fees, but a third-party such as a family member is going to pay the remainder that the council doesn’t cover, the third party top up must be agreed with the LA and the contract should clearly outline how much they are required to pay and how fees will be managed. The third-party will then agree to the contract and those payment terms.
Read our helpful guide to find out more about who is responsible for care home fees.
Choosing a care home with confidence
Understanding your care home contract can help you and your loved ones feel confident in the care you'll receive. From fees and funding assistance details to the services included, taking the time to understand the terms can help you make an informed decision.
At Anchor, we're committed to providing high-quality care in a safe, welcoming environment, with clear information from the very start of the process to help you and your family make the right choice.
Find out more about our residential care at Anchor and explore our guides and support to receive valuable advice on making decisions and supporting loved ones.
