According to Alzheimer’s Research UK, 944,000 people are estimated to be living with dementia in the UK.
Dementia is a degenerative condition that affects memory, thinking and behaviour. Caring for someone living with dementia can be a challenging and emotional experience and one of the most significant concerns for Caregivers is the cost of care.
As dementia progresses, it becomes increasingly difficult for the person to live independently and they may require more and more assistance with daily activities.
In this article, we will explore the costs associated with dementia care in the UK including residential care, nursing care and home care.
Who pays for dementia care?
Residential & Home Care
Dementia care in a residential care home or home care is paid for privately or by the Local Authority. If an individual has assets of over £23,250 they will be required to privately fund their care. However, if someone has assets below this threshold, they will be eligible for part or full funding from the Local Authority. People with assets below £14,250 will be eligible for full funding from the Local Authority. In this instance, the council will arrange an assessment of the person's needs and will determine a Personal Budget that they are prepared to pay to meet the needs of the individual.
| Assets of over £23,250 | Private/Self-funder |
| Assets between £14,250 - £23,250 | Part Council-funder, part private-funded |
| Assets of less than £14,250 | Fully council-funded |
Are you unsure whether you are eligible for funding from the Local Authority? If so, we would recommend speaking to your local Adult Social Care Team as soon as you can. It can take several weeks to arrange a financial assessment for social care due to high demand.
Nursing & Home Care
If an individual living with dementia has nursing needs, they will be eligible for Funded Nursing Care (FNC) which is paid directly to the nursing home at a flat rate from the National Health Service (NHS). From 1st April 2024, FNC rates are £235.88 per week unless someone is eligible for the higher rate which is £324.50 per week. The Clinical Commissioning Group (CCG) will assess the individual to check whether they are eligible for FNC. FNC can only be claimed in residential or nursing home settings.
Should the FNC rate not cover the full cost of dementia care in a nursing home, the remainder will be funded privately by the individual or by their Local Authority if they have assets of less than £23,250 (see the chart above).
The only instance that someone with dementia and nursing needs will not be granted FNC is when they have been awarded NHS Continuing Healthcare (CHC) which covers the entire cost of nursing care and is also paid directly to the nursing home from the NHS. CHC is awarded to people outside of the hospital who have significant primary ongoing healthcare needs. Anyone over the age of 18 years old can be granted this type of funding and those eligible will usually have a disability, long-term illness or have had an accident which has resulted in a life-changing injury. People with CHC funding can receive care at home or in a residential setting.
**Please note that from October 2025, the funding thresholds will be changing so that anyone with assets below £20,000 will qualify for full council funding, anyone with assets between £20,000 - £100,000 will be eligible for part council funding and anyone with assets above £100,000 will not be eligible for funding until they have contributed £86,000 towards their care**
Average dementia care costs by care type and region in the UK
| Region | Residential Dementia (weekly) | Nursing Dementia (weekly) | Home Care Dementia (hourly) |
|---|---|---|---|
| South East | £1,411 | £1,552 | £28 |
| North West | £1,042 | £1,312 | £25 |
| East Midlands | £1,039 | £1,175 | £24 |
| North East | £943 | £988 | £23 |
| South West | £1,267 | £1,449 | £27 |
| East of England | £1,229 | £1,380 | £27 |
| Yorkshire & the Humber | £1,052 | £1,292 | £24 |
| West Midlands | £1,110 | £1,229 | £24 |
| Greater London | £1,476 | £1,619 | £25 |
Residential Dementia Care Costs
Residential dementia care involves living in a care home that provides 24-hour support and care for people living with dementia. The cost of residential dementia care will vary on the location, facilities and level of care needed by the individual which will be determined by the Care Assessment.
Our data suggests that the average cost of residential dementia care costs £1,174 per week but this will vary greatly depending on the factors mentioned. There may be additional costs to consider for extra services or activities at the care home; some care homes are all-inclusive whilst others charge extra for certain services.
Nursing Dementia Care Costs
Nursing dementia care is a more intensive level of care that involves 24-hour nursing support in a nursing home for people living with dementia. A Registered Nurse will be on-site at all times to support residents where needed.
In general, the cost of nursing dementia care is higher than residential dementia care because the person's care needs are typically higher. Our data shows that the average cost of nursing dementia care in the UK is £1,333 per week but again this will depend on the location, facilities and level of care requirements of the individual.
Dementia Care at Home Costs
Home care is a suitable option for people living with dementia who would like to remain living in their own homes but require assistance with day-to-day activities. The cost of home care for someone with dementia care needs will vary on the level of support they require, the number of visits/hours they would like and the location they live in. Our data suggests that the average cost of dementia home care in the UK is £25 per hour.