Independent advice for families thinking about the cost of care — how it might be funded, how to protect a partner, and what it means for the estate you hope to leave. A calm, practical conversation, with no pressure to decide anything before you are ready.
Independent advice for families thinking about the cost of care — how it might be funded, how to protect a partner, and what it means for the estate you hope to leave. A calm, practical conversation, with no pressure to decide anything before you are ready.
Most people come to care planning at a difficult moment — a fall, a diagnosis, or simply noticing that someone who always coped is finding things harder. Others plan earlier, while fit and well, so nothing lands on the family unexpectedly. Either way the question is the same: if care is needed, how will it be paid for? We treat it as part of the whole picture — income, property, the estate and the people who depend on it — not a single decision made in isolation.
£23,250
Self-funding capital threshold (England)
£1,710
Weekly South East nursing dementia care
£86,000
Planned care cap — scrapped in 2024
Later life financial planning is the process of organising your money and your wider affairs for the later stages of life — so the cost of care, the security of a surviving partner and your wishes for your estate are handled as one coordinated plan rather than a series of separate worries. The thread running through all of it is that these decisions affect one another: how you fund care changes what is left for a partner, which changes what passes to children. Looked at together, the picture is far easier to plan than piece by piece.
The financial side
The groundwork
Whole-of-market, built around you. We are independent financial advisers, so the options we set out are chosen to fit your situation — not a panel or a single provider. It is a conversation, not a sales pitch.
The real numbers
Care is expensive, and more so in the South East than almost anywhere in the country. It helps to see real figures rather than guess. Treat these as a guide to scale, not a quote — actual fees vary widely by home, location and the level of care needed.
| Type of care | Indicative weekly cost | Indicative annual cost |
|---|---|---|
| Residential care (UK average) | ~£1,300 | ~£67,600 |
| Nursing care (UK average) | ~£1,512 | ~£78,600 |
| Nursing dementia care (UK average) | ~£1,585 | ~£82,400 |
| Nursing dementia care, London | ~£1,700 | ~£88,400 |
| Nursing dementia care, South East | ~£1,710 | ~£88,900 |
Indicative national and regional averages drawn from Lottie's 2026 care cost data. Individual fees vary. Because we sit in Maidstone and serve London and the South East, these are not abstract national numbers for the families we advise — a plan built on a realistic local figure is a far safer plan than one built on a national average.
Who pays
Whether you pay for your own care or receive help from the council depends on a financial assessment, usually called the means test. In England the council weighs your capital — savings, investments and, in many cases, the value of your home — against two thresholds. The rules differ across the UK.
£23,250
Above this, you are expected to pay the full cost of your care yourself. Frozen since 2010; applies for 2026/27.
£14,250
Below this, the council provides the most support, though your income is still taken into account. Between the two, you contribute on a sliding scale.
£35,000 / £21,500
Higher capital limits, plus free personal and nursing care for those aged 65+ (currently £248.70 and £111.90 per week).
£50,000
A single flat capital limit with no lower threshold. If you or your relative live outside England, it is worth checking the rules where you are.
NHS Continuing Healthcare can cover the full cost of care where a person has a primary health need, and NHS-funded nursing care contributes a standard weekly amount (£267.68 in 2026/27) towards nursing in a care home. These are assessed on health, not money — and many families do not realise they exist. Working out whether they might apply is part of getting the full picture.
The reality on the cap
You may have read that a cap on care costs was coming, limiting the total any one person would pay over their lifetime. The position changed. The planned £86,000 cap was scrapped in 2024, and there is currently no cap in force. People who fund their own care remain responsible for the full cost, however long care is needed.
That is precisely why planning ahead matters — and why understanding the real numbers, rather than relying on a cap that no longer exists, is the honest place to start.
1 in 7
people face lifetime care costs of more than £100,000, according to the House of Commons Library.
Ways to fund care
There is rarely a single right answer. Most plans draw on a combination of sources, chosen to fit the family’s circumstances. What follows is an explanation of the main routes, not a recommendation of any one of them — which combination suits you depends entirely on your situation.
For many people the first source is regular income: the state pension, private or workplace pensions, and any other income such as rent. Where care is needed for a long time, drawing a sustainable income without exhausting the capital that protects a surviving partner takes careful planning.
A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.
Cash savings and invested capital are often used to meet fees, either directly or to top up income. The balance to weigh is using capital now against keeping enough invested for the future and for those who depend on you.
The value of your investments and income from them may go down. You may not get back the original amount invested.
The family home is often the largest asset, and treatment depends on who still lives there. If a partner remains in the home, its value is generally disregarded in the means test. Otherwise some families sell, some let for income, some downsize. A local authority deferred payment agreement can let fees be paid from the eventual sale rather than upfront.
Each route carries tax and timing consequences worth thinking through.
A lifetime mortgage lets older homeowners release cash from their home without moving. It reduces the value of your estate and may affect means-tested benefits; interest typically rolls up, so the amount owed grows. For some families it is a sensible part of the plan; for others it is the wrong tool. It is an area where independent, whole-of-market advice genuinely matters.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
An immediate needs annuity is bought with a lump sum and pays a guaranteed income towards care fees for the rest of a person's life. Paid directly to a registered care provider, the income is currently tax-free. The appeal is certainty; the trade-off is the upfront cost, and that the total paid may be more or less than the lump sum committed.
Whether it fits depends on health, the figures and the family's wider priorities.
Running through every route is the question of the person left at home. How care is funded changes what remains for a surviving spouse or partner, and what eventually passes to children. We always weigh the funding decision against the security of the people who depend on it.
We talk these options through together, not in isolation.
Because care funding rarely stands alone, we also look at how it connects to the rest of your affairs — how care costs interact with inheritance planning, drawing a sustainable retirement income, and supporting a surviving partner. You can also meet the team who would be working with you.
Coming soon
In development
Estimate the likely cost of care based on type and location, so you can plan against a realistic local figure rather than a national average.
In development
Illustrate how much might be released from a home, and what it could cost over time — a starting point for a fuller, advised conversation.
Until these are ready, the indicative figures above give a sense of scale — and we are always happy to work through the numbers with you directly.
Our role is to bring these pieces together into one plan — and to carry some of the weight of the decisions with you. From understanding the means test to weighing the funding routes, we follow the same three steps with every client.
Understanding the full picture first.
We start by understanding the situation fully — the care needed or anticipated, the income and capital available, the home, and the wishes for a surviving partner and the estate. Nothing is recommended until the whole picture is clear.
Setting the agreed plan in place.
We set out the funding options in plain terms, explain the trade-offs, and put the agreed plan into place — coordinating with your solicitor on the will, lasting powers of attorney and any trusts so the legal and financial sides line up.
Keeping the plan in step with life.
Circumstances change, sometimes quickly — a shift in health, a move between care settings, or a change in the family's finances. We stay alongside you, reviewing the plan as care needs, costs and family circumstances move so it keeps doing its job.
Behind that process sits a firm with unusual continuity. The H&D name traces back to Harris & Dixon, a City of London house whose roots reach toward 1797 — a name that has moved through different trades and several centuries. What endured was never the ledger but the instinct behind it: knowing your client, holding their interests above the transaction. The advice business that carries the name today has looked after individuals and families since 1987. Read more about our heritage, or meet the team behind H&D.
H&D Financial Planning is independent. We are not tied or restricted to any product provider, and our recommendations are based on a comprehensive and fair review of the market, made in your best interests. On decisions as significant as funding care and protecting the people who depend on you, that difference matters. You can check the firm's status on the Financial Services Register.
A restricted adviser chooses from a single provider or an agreed panel; we consider every suitable option and recommend what fits you.
To implement advice we use a carefully selected range of providers and products, kept under regular review.
We are part of the Loyal North Group; where a group firm is among the options we consider, we say so clearly, and any recommendation is made on its merits.
“
My job is to help you make the decisions that still make sense years from now.”
Care home costs vary widely by region and the level of care needed. As a guide, residential care in the UK averages around £1,300 a week (about £67,600 a year) and nursing care around £1,512 a week (about £78,600 a year), based on 2026 data from Lottie. Costs are higher in London and the South East, where nursing dementia care can reach around £1,700 to £1,710 a week. These are averages, and an individual home's fees may differ.
It depends on a financial assessment, known as the means test. In England, if your capital is above £23,250 you are expected to fund your own care; below £14,250 the council provides the most support, and between the two you contribute on a sliding scale. Income is also taken into account. Scotland and Wales use different thresholds. Separately, the NHS funds care in some circumstances through NHS Continuing Healthcare, which is assessed on health needs rather than finances.
Not necessarily. If your husband, wife or partner still lives in the home, its value is generally disregarded in the means test, so it is not counted towards the cost of your care. Where the home is no longer lived in, some families sell it, some let it, and some use a local authority deferred payment agreement so fees are settled from the eventual sale rather than paid upfront. The right approach depends on who lives in the home and your wider plan.
No. A cap of £86,000 on the amount any one person would pay towards their care over their lifetime was planned, but it was scrapped in 2024 and no cap is currently in force. People who fund their own care remain responsible for the full cost, however long care is needed. This is why planning ahead, based on the real figures, is so important.
It is one possible option, but not an automatic one. Equity release, usually a lifetime mortgage, lets older homeowners release cash from their home without moving, which can help fund care. It reduces the value of your estate and may affect your entitlement to means-tested benefits, and the interest usually rolls up so the amount owed grows over time. This is a lifetime mortgage; to understand the features and risks, ask for a personalised illustration. It should always be weighed against the alternatives with independent advice, not chosen in isolation.
An immediate needs annuity is an insurance policy bought with a one-off lump sum that pays a guaranteed income towards care fees for the rest of a person's life. When paid directly to a registered care provider, the income is currently tax-free. Its appeal is certainty: it caps the cost and removes the worry of money running out. The trade-offs are the upfront cost and that the total paid may be more or less than the lump sum, depending on how long care is needed.
If you are thinking about care costs, the first conversation is free and carries no pressure and no obligation. Get in touch when you're ready.
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