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Fee rates and cash flow for care providers

We work out the fee or hourly rate each service needs from its real costs, and keep a cash flow forecast that follows when councils, the NHS and families pay.

Children playing with a train set on a nursery floor

The rates that moved in April 2026

Each rate is shown with its 2025/26 figure struck through. The capital limits for council-funded care, £23,250 and £14,250, did not change.

National Living Wage per hour

£12.21£12.71

From 1 April 2026. £13.21 from 1 April 2027.

NHS-funded nursing care per week

£254.06£267.68

Standard rate from 1 April 2026, paid by the NHS to the care home.

Personal Expenses Allowance per week

£30.65£31.80

What a council-funded care home resident keeps from their income in 2026/27.

Funding for under-2s per hour

£11.56£12.04

DfE's national average rate to councils for 2026/27.

Funding for 2-year-olds per hour

£8.54£8.90

DfE's national average rate to councils for 2026/27.

Funding for 3 and 4-year-olds per hour

£6.12£6.61

DfE's national average rate to councils for 2026/27.

Working out the fee a service needs

For a care home, the starting point is the year's costs divided by the resident weeks the home expects to fill. Staff are the largest cost, so the occupancy assumption and the wage rate for the year decide most of the answer. The same sum for a home care agency runs on the hours it delivers, with travel time in the cost of each hour.

We build the figure for each home or service and keep it up to date as costs and occupancy move, so you go into each fee discussion with the number your costs need.

Council funding in 2026/27

The Market Sustainability and Improvement Fund, which councils used towards fee rates, has been folded into their Fair Funding Allocation for 2026/27, so fee uplifts now come out of each council's general allocation. For nurseries, councils must pass at least 97% of their early years funding to providers.

Cash flow

Care businesses pay staff weekly or monthly and are paid by councils, the NHS, families and parents on different timetables. A rolling cash flow forecast shows each of those dates, alongside payroll, VAT where it applies, and corporation tax.

Common questions

Is there a standard council fee rate for care homes?

No. Each council sets the rates it pays, and no national figure is published. We work from your costs to the fee each home needs, so you can compare it with the rate on offer.

How is the National Living Wage rise for April 2027 built into fees?

Through the budget for the year. The rise is 3.9% on the 21-and-over rate. We cost your rota at £13.21 and show the weekly fee or hourly rate each service needs from April 2027.

Can you help with a cash flow forecast?

Yes. We build a rolling 12-month cash flow forecast with the timing of council, NHS and family payments, payroll and tax, and update it each month or quarter in Business Pulse.

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Book a free fee review

Send us your last accounts and your current rates and we will work out the fee each service needs.

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