Care home top-up fees

If your choice of care home accommodation costs more than your local council is willing to pay, someone else can make up the difference between that figure and the home’s fee. This is known as a third party top-up fee.

What is a third party top-up fee?

If the council is funding your care home place, they'll give you an amount of money, known as your personal budget, to meet your needs following the financial assessment.

If you choose a home that's more expensive than the amount your council will pay, you can still move there as long as someone, such as another family member agrees to pay the difference or the ‘top-up fee’.

You shouldn't be asked for a third party top-up fee if you've moved into a more expensive home out of need rather than preference. The care needs assessment is used to understand your needs.

Who can pay care home top-up fees?

Third-party top-up fees are paid by someone other than the person living in the care home or the local council. This could be a friend or family member – or sometimes a charity. It's important to get financial advice before agreeing to pay someone’s top-up fees, and consider how price increases or changes in circumstances might impact your ability to pay. 

Price increases

Care home fees often increase every year but local councils don’t always increase their funding by the same amount. So, you could find yourself paying more each year to cover the difference in fees.

Change in circumstances

A top-up arrangement might be reviewed for different reasons, including changes in your circumstances or the person making the top up payments or increased care home costs.

The local council have to say in writing how it'll respond to these changes and what the responsibilities of the person making top-up payments are.

Can I pay my own top-up fees?

You're not usually allowed to make your own top-up payments, but there are 3 specific situations where you can:

• When you first move into a care home and your property in subject to the 12-week disregard.
• When you have a deferred payment agreement.
• If your care home place is provided as 'after-care' under section 117 of the Mental Health Act 1983.

For more advice about these situations, you can call the Age UK Advice Line on 0800 678 1602 or visit your local Age UK.

What happens if payment of the top-up fee stops?

If top-up payments stop because of a change of circustances, you might have to think about moving to a less expensive care home.

The local council have to do a new assessment of your health and wellbeing before deciding to move you.

Can I get financial support to pay a top-up fee?

Occasionally a charity might agree to pay someone’s top-up fees. Contact Turn2us to find out if you could be eligible for help.

Visit the Turn2us website

If you’re paying someone’s top-up fees but the money is going to run out, speak to the council and manager of the care home as soon as possible.