The NHS can help pay for care home fees in two main ways: NHS Continuing Healthcare (CHC), which covers all costs for those with a primary health need, and NHS-Funded Nursing Care (FNC), which pays a set weekly amount towards nursing costs. Neither route is means-tested, meaning your savings and income are not considered when deciding eligibility — only your care needs matter.

If you are researching care options for a loved one, understanding how NHS funding works is one of the most important steps you can take. This guide explains the two main types of NHS funding, how to apply, what the current rates are, and how NHS funding fits alongside other sources of support such as local authority funding.

What is NHS Continuing Healthcare (CHC)?

NHS Continuing Healthcare is a package of care that is fully arranged and funded by the NHS. It covers all of a person’s care costs, including accommodation and food in a care home, with no contribution required from the individual.

CHC is available to adults aged 18 and over in England, Wales, and Northern Ireland. It is designed for people whose care needs are primarily health-related — meaning the main reason they need care is to address or prevent a health need.

Crucially, eligibility is not based on having a specific diagnosis. Two people with the same condition may have very different levels of need, so each case is assessed individually.

“Our ultimate goal for everyone at Blissful is happiness.” — Blissful Care Homes

What is NHS-Funded Nursing Care (FNC)?

NHS-Funded Nursing Care is a weekly payment made by the NHS directly to a nursing home to help cover the cost of care provided by a registered nurse. It does not cover the full cost of care home fees — just the nursing element. Accommodation, food, and other living costs remain the responsibility of the resident or their funding source.

FNC is available to people who:

• Live in a care home that is registered to provide nursing care
• Have been assessed as needing care from a registered nurse
• Do not qualify for the higher level of NHS Continuing Healthcare

FNC is not means-tested either, so it is available to both self-funded residents and those whose care is paid for by a local authority.

If you are exploring nursing care options, understanding FNC can help you work out the true cost of care for your loved one.

Current NHS Funding Rates (2025/26)

The rates below apply from April 2025 and vary depending on where in the UK the care home is located.

*The higher rate in England is only available to those who were receiving it before 2007, when the standard rate was introduced.

Scotland operates differently: personal and nursing care are provided free to anyone who has been assessed as needing it, regardless of finances. Accommodation costs may still apply.

How CHC and FNC Are Assessed

The assessment process for both CHC and FNC begins with your GP, social worker, or local Integrated Care Board (ICB).

Step 1: The Checklist

A trained health or social care professional completes a screening checklist, looking at your care needs across a range of categories. This helps decide whether a full assessment is needed.

Step 2: The Full Assessment

If the checklist suggests you may be eligible for CHC, a multidisciplinary team (MDT) carries out a full assessment. They use a tool called the Decision Support Tool (DST), which looks at your needs in detail across categories such as:

• Breathing
• Continence
• Mental health
• Cognition
• Behaviour
• Communication
• Mobility
• Nutrition
• And more

Step 3: The Decision

The MDT makes a recommendation to your local ICB, which then confirms whether you are eligible. You should receive a written decision within 28 days of your assessment.

Fast-Track CHC

If a person’s condition is rapidly worsening or they are nearing end of life, a fast-track pathway is available. This bypasses the standard assessment and allows a single clinician to refer a person directly for CHC funding.

What Happens if You Are Not Eligible for CHC?

Being turned down for CHC does not mean there is no NHS support available. If you have been assessed as needing nursing care but do not meet the threshold for CHC, you will likely be eligible for NHS-Funded Nursing Care instead.

You also have the right to appeal. If you disagree with the decision, you can:

1. Ask your ICB to reconsider
2. Request an independent review panel through NHS England
3. Escalate to the Parliamentary and Health Service Ombudsman as a final step

How NHS Funding Sits Alongside Local Authority Funding

For many people, NHS funding works alongside — rather than instead of — support from their local council. Local authority funding for care home residents is means-tested, based on income, savings, and in some cases the value of your property.

The key thresholds for 2025/26 in England are:

If you are a self-funder in a nursing care home, NHS-Funded Nursing Care will still reduce the amount you pay each week — it is paid directly to the care home on your behalf.

Things to Know About Property and the Means Test

Your home is not included in the financial assessment during the first 12 weeks after moving into a care home. This gives you time to make decisions about your property. After this period, your home may be included unless:

• A spouse or partner still lives there
• A sibling or other close relative who is disabled or over 60 lives there

A Deferred Payment Agreement allows you to delay selling your home, with the council placing a legal charge on the property instead. This means care costs are recouped later — either when the property is sold or after your death.

Benefits That Can Help with Care Costs

Alongside NHS and local authority funding, several benefits may be available to help with care home costs:

• Attendance Allowance — available to those at State Pension age who need extra help with personal care. Currently £73.90 or £110.40 per week depending on the level of need.
• Disability Living Allowance (DLA) — for those under State Pension age with long-term conditions.
• Personal Independence Payment (PIP) — replaces DLA for working-age adults.

It is important to note that if you receive NHS Continuing Healthcare in a care home, Attendance Allowance and both parts of DLA and PIP stop after 28 days.

Choosing the Right Level of Care

The type of care a person needs will influence which funding routes are available to them. Here is a quick overview:

At Blissful Care Homes, we support families through every stage of this process. Whether you are looking into residential care for the first time or considering a move to a higher level of support, our team is here to help you understand your options.

How to Get Started

If you think your loved one may be eligible for NHS funding, here are the steps to take:

1. Speak to their GP or social worker — they can begin the assessment process or refer you to your local ICB.
2. Request a care needs assessment from your local council — this is free and you are entitled to one regardless of your finances.
3. Seek free, independent advice — organisations such as Age UK and the NHS Beacon service (0345 548 0300) offer up to 90 minutes of free guidance on CHC.
4. Do not pay for help applying — the CHC process is designed to be navigated by individuals and their families. Claims management companies often charge significant fees for a service you can access for free.

If you would like to discuss care options with a member of the Blissful team, you can get in touch with us at any time. We are happy to help you understand the care journey and find the right fit for your loved one.

Sources: GOV.UK, NHS England, Age UK, NHS.uk, Independent Age. Rates and thresholds shown are for 2025/26 and should be confirmed with your local authority or ICB, as they are reviewed annually.