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LONG TERM CARE PLANNING · SUFFOLK & EAST ANGLIA

If care is needed, what will it actually cost?

Care home fees have risen sharply over the last decade, and there is currently no cap on how much a family may pay. We help clients across Suffolk understand what care could cost, what the state will and won't fund, and how to plan for it without giving up more than you have to.

What long term care actually costs today

Care fees in the UK vary widely by region, care level and provider, but the national averages give a useful starting point. As of 2025/26, self-funded residential care costs around £1,300 per week (roughly £67,600 a year). Nursing care averages around £1,512 per week (£78,600 a year). Specialist dementia nursing care typically pushes those figures higher again — often over £81,000 a year. (Source: carehome.co.uk / LaingBuisson care fee data, 2025/26.)

These are national averages. Fees in Suffolk and East Anglia are generally close to the UK average, though London and the South East cost significantly more. And the trend is upward: self-funder fees rose around 10% between December 2024 and December 2025 as care providers absorbed higher wages, National Insurance and running costs (Source: Caring Britain report, carehome.co.uk, 2026).

Who pays — and who doesn't

In England, whether you self-fund or get local authority support depends on your capital. If your assets (including, in most cases, your home) sit above £23,250, you pay the full cost yourself. Between £14,250 and £23,250, the council contributes to your care from your capital on a sliding scale. Below £14,250, capital is disregarded — though income like pensions still counts.

Note that the government's proposed £86,000 lifetime cap on care costs — originally due to come in in October 2025 — was scrapped in July 2024 (Source: Department of Health and Social Care, July 2024). As things stand today, there is no upper limit to what a self-funder may pay.

The single most useful conversation many families have about long term care is the one that happens before care is actually needed. Planning under time pressure, in the middle of a crisis, usually produces worse outcomes and more anxiety.

What we help clients plan for

1

Understanding what the state will fund

NHS Continuing Healthcare covers 100% of care costs if you have a primary health need — but eligibility is tightly defined and requires a proper assessment. NHS-funded nursing care (FNC) pays a flat contribution towards nursing home fees for those who need registered nursing care but don't qualify for full CHC. We help families understand what's available and how to apply.

2

Planning before care is needed

The earlier you plan, the more options you keep. Investment strategy, tax-efficient wrappers, and how the family home is held can all affect what may be available to fund care later — and what may be protected. We work with your solicitor where wills or trusts need updating.

3

Immediate needs annuities

Where care is imminent, an immediate needs annuity (also called a care fees annuity) can convert a lump sum into a guaranteed income for life, paid directly to the care provider — free of income tax. For self-funders, this can put a ceiling on care fee risk. It's not right for everyone, and the trade-off requires careful modelling.

4

Funding options that don't require selling the home

Deferred payment agreements, equity release, and drawdown from investment portfolios can all form part of a plan that avoids or delays selling a family home to pay for care.

Working alongside your solicitor

Long term care planning often intersects with wills, trusts and lasting powers of attorney. We work alongside your solicitor to make sure the legal and financial pieces line up. If you don't have a solicitor, we can point you to trusted local firms we've worked with.

Important: Care fees data reflects self-funder averages published for the 2025/26 tax year. Actual costs vary significantly by region, provider and care needs. Immediate needs annuities and equity release are complex products and are not suitable for everyone — please seek advice tailored to your specific position before acting. Tax rules and thresholds can change.

Figures correct as at July 2026. Market data, rates, allowances and average costs shown on this page are sourced and dated individually. These figures change over time and are provided for general guidance only — they are not personal advice, and they are not a substitute for a recommendation based on your own circumstances.

Common questions about long term care planning

The answers our clients most often need. If yours isn't here, get in touch — we're happy to talk it through.

Will I have to sell my home to pay for care?+

It depends. If you enter permanent care and don't have a spouse, partner or dependent relative living in the home, its value is usually counted in your financial assessment after the first 12 weeks. Options like deferred payment agreements (borrowing against the home to pay fees) and immediate needs annuities can delay or avoid a sale. Planning early gives you the most options.

What is NHS Continuing Healthcare?+

CHC is a package of care fully funded by the NHS for people with a 'primary health need' — where the main reason for needing care is health-related rather than social. It covers the full cost of your care regardless of your assets. Eligibility is based on a formal assessment and the criteria are strict, but for those who qualify it removes the fees question entirely.

What is an immediate needs annuity?+

It's a specialist annuity designed for people who are already in care or about to enter it. You exchange a lump sum for a guaranteed income for life, paid directly to the care provider tax-free. For self-funders it can put a ceiling on care fee risk — but it requires giving up a lump sum permanently, so it needs careful analysis of alternatives.

Can I give away money to avoid care fees?+

You can gift money, but if the local authority believes you gave assets away specifically to reduce care fees, they may treat those assets as if you still held them ('deprivation of assets'). There's no fixed time limit — a gift made ten years ago can still be caught if the intention is deemed to have been to avoid care costs. Gifting for legitimate reasons is fine; gifting to duck care fees generally isn't.

What happens if I've already started paying for care?+

It's not too late. We can review your position, check eligibility for CHC and FNC, look at whether an immediate needs annuity would make sense given the fees you're paying, and help protect what remains of your capital and income. Families often find they're paying more than they need to.

Does long term care planning affect my inheritance tax position?+

Sometimes significantly. Assets used to fund care aren't in your estate at death. Gifts made more than seven years before death drop out of the IHT calculation. The two topics — care planning and IHT planning — are closely linked and usually need considering together, which is why we often work alongside your solicitor.

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