A nursing home resident can be funded by the council, by themselves, partly by the NHS through a weekly nursing care payment, or wholly by the NHS. Each route pays the home differently.
A resident of a nursing home can be funded by the council, by themselves, partly by the NHS through NHS-funded nursing care, or wholly by the NHS through continuing healthcare. Each route pays the home on different terms.
Capital below the upper limit. The council arranges care for eligible needs and charges the resident under its means test.
The resident pays the home's fee. For care homes, the council may arrange the care but is not required to.
Paid by the NHS directly to the care home, at the standard rate from 1 April 2026.
Health and social care arranged and funded solely by the NHS, for a person with a primary health need.
The standard weekly rate rose from £254.06 in 2025/26 to £267.68 from 1 April 2026, and the higher rate from £349.50 to £368.24. The NHS pays it directly to care homes, so a resident who receives it is paid for by two payers: the NHS for the nursing care payment, and the council or the resident for the rest of the fee.
A sales ledger that records both streams by resident shows a missing NHS payment in the month it is due.
The National Framework describes NHS continuing healthcare as "an ongoing package of health and social care that is arranged and funded solely by the NHS" where the person has a "primary health need".
For 2026/27 the upper capital limit in England is £23,250 and the lower limit £14,250. Section 18(3) of the Care Act 2014, which would let a self-funder ask the council to arrange a care home place, has not been brought into force for care homes. More in our article on self-funders and the capital limits.
We set up your fee ledger by payer, reconcile NHS payments each month, and report fee income by funding route in your management accounts for care homes.
The NHS, directly to the care home. The standard rate is £267.68 a week from 1 April 2026.
Yes. It is £368.24 a week from 1 April 2026, up from £349.50.
The £23,250 and £14,250 limits, tariff income and top-ups.
Occupancy, staff cost ratio and the other measures we report each month.
What councils are told about fee levels, and the cost case that answers it.
We look at your last accounts, your payroll hours and your fee rates, and tell you what we would change.