How to Avoid Care Home Costs

The cost of residential care is a growing concern, making it essential for individuals and families to plan ahead.

While care homes provide vital support for many, exploring ways to manage and reduce these costs can help protect assets and ensure financial stability.

Understanding how to avoid care home costs where possible—through state support, alternative care options, or financial planning—can make long-term care more affordable.

However, it is important to approach this responsibly and consider both legal requirements and ethical implications to ensure the best outcome for all involved.

Understanding care home costs

When people inquire about how to avoid care home costs, it is usually for a few different reasons. The main reason is because of the growing expenses associated with care provision. However, it can also be because of a misunderstanding about what care home fees cover and how the inclusions can sometimes save care seekers money in the long run.

In this section, we’ll provide a quick breakdown of some of the typical things that are included in care home fees.

However it is important to understand that costs can vary depending on location, care level, and additional services. It also varies depending on the care home in question.

Understanding how to avoid care home costs starts with knowing what these expenses cover and how they are assessed.

Key elements included in care home fees are:

• Accommodation – Room, utilities, housekeeping, and laundry services.
• Personal care – Assistance with daily activities such as bathing, dressing, eating, and mobility.
• Medical support – Medication management, access to nurses, and coordination with healthcare professionals.
• Meals and nutrition – Daily meals, snacks, and special dietary requirements.
• Social activities and wellbeing – Organised events, entertainment, and communal activities to support mental and emotional health.
• Specialist care (if required) – Dementia care, physiotherapy, or other tailored medical support.

Some care homes may charge extra for premium services, such as outings, or additional therapies, so it’s important to review what is included in the standard fee.

Legal ways to reduce or avoid care home costs

If you are wondering how to avoid care home costs legally, then this section will outline some of the main ways you can do just that. Fortunately, there are government benefits, asset protection strategies, and alternative care provisions that can help you reduce the amount you spend on care. Although it will never be possible to avoid paying for care costs completely, it is possible to save money on fees. Below are some of the key ways care seekers can access financial support.

State support & benefits

Various government-funded options can help cover care costs, depending on eligibility. For more information on some of these main benefits, visit our blogs on Pension Credit, Attendance Allowance and Winter Fuel Allowance. Eligibility for these benefits depends on your financial circumstances and needs.

NHS Continuing Healthcare (CHC) funding

Fully funded by the NHS, CHC covers care costs for those with complex health needs. Eligibility is based on a detailed assessment of medical requirements.

Local authority funding & eligibility criteria

Councils may contribute to care costs based on a financial assessment. Those who do not own property or have savings worth less than £23,250 may be eligible for financial support from their local authority. So, it is worth contacting your local authority for more information on eligibility and what they offer.

Asset protection strategies

Planning ahead can help protect assets while ensuring care needs are met. Here are key strategies to consider:

Gifting assets (rules & potential pitfalls)

Transferring assets to family members may reduce care costs, but strict rules apply. Deliberate deprivation of assets can lead to funding ineligibility and legal action by your local authority.

Using trusts to safeguard property

Placing property or savings in a trust can protect assets and ensure they are passed on as intended. Professional advice is essential to navigate legal complexities.

Joint ownership strategies

Owning property jointly with a spouse or family member can affect how assets are assessed for care funding. Understanding the implications can help in financial planning.

For more information about how to avoid care home costs from spiralling out of control, check out our blog on self funding care, which provides more information about the financial tools available to those that are paying for their own care.

Alternative care arrangements

Choosing the right care option depends on individual needs, preferences, and financial circumstances. Here are some alternatives to traditional residential care:

Home care vs. residential care

Home care allows individuals to receive support while staying in their own homes, offering flexibility and independence. Residential care provides 24/7 support in a dedicated setting, which may be better suited for those with higher care needs.

Shared living & family caregiving

Some families opt for shared living arrangements where a relative provides care, sometimes with financial or respite support. This can be a cost-effective and personal alternative to formal care.

Assisted living options

Assisted living bridges the gap between independent living and full-time care, offering on-site support while allowing residents to maintain autonomy. Services vary, so it’s important to compare options.

Practical steps to take now

Taking proactive steps can help ensure better financial and care decisions in the future. We list some of the practical steps you can take below:

Consulting with a financial adviser

A specialist adviser can help navigate funding options, protect assets, and plan for long-term care costs effectively. For example, the Society of Later Life Advisers can help advise you on how to make the right financial choices for later life care. You can find out more by visiting our website.

Exploring care options before the need arises

Researching care providers, visiting facilities, and understanding funding eligibility in advance can make future transitions smoother and less stressful. Autumna can help with this research process with our online directory. Simply select the type of care you need and enter your location in the search bar. You can also use our shortlisting tool and answer a few questions to be matched with an even more personalised list of care options.

How to avoid care home costs

If you’re wondering how to avoid care home costs, the reality is that while it’s not possible to completely sidestep fees, there are many ways to reduce their impact. The first step is always to research care home costs in your area and gather as much information as possible. This will help you make an informed decision when it comes to paying for your care. With the right approach, you can protect your assets while ensuring quality care for the future.