What is a care home top-up fee?

A care home top-up fee — sometimes called a third-party top-up — is the difference between what the local authority is willing to pay for a placement and what the care home actually charges. A family member or other third party agrees to pay this gap so the resident can stay in a home that costs more than the council rate. The resident themselves usually cannot pay their own top-up.

When is a care home top-up lawful in England?

Under the Care and Support Statutory Guidance, a third-party top-up is only lawful if three conditions are met: (1) the council offered at least one home at its standard rate that met the assessed needs, (2) the choice to pay a top-up was made freely and without pressure, and (3) the arrangement is set out in a written agreement. If no affordable alternative was offered, the council should cover the full cost itself.

How accurate is this top-up gap calculator?

The tool uses the local authority's published rate from MSIF data (2025–26) and the regional market average for residential, nursing, or dementia care. Both numbers are averages — specific homes may charge less or far more. The gap shown is indicative. Always confirm exact weekly fees in writing with each home and ask your council which homes within its standard rate were offered.

Can a care home increase the top-up fee later?

Yes. Care homes typically review fees annually and pass on increases to residents and third-party top-up payers. Annual increases of 5–10% have been reported in recent years. A proper top-up agreement should set out the review process and notice period. Ask for a written copy of the agreement before signing and check what happens if fees rise faster than expected.

What happens if I can't afford the top-up anymore?

If the third party can no longer afford the top-up, the council must arrange alternative care that meets the assessed needs at its own rate. In practice this can mean moving to a different home, which is disruptive — particularly for residents with dementia. The council's duty to arrange care continues regardless of whether a top-up has previously been paid.

Council rate · Market fee · Your gap

Will your family need to pay extra on top of what the council covers?

When the council funds a care home place, it pays a fixed weekly rate. Most care homes charge more — the difference is paid by a family member as a “top-up fee.” Enter your postcode to see the likely gap in your area.

What is a top-up fee?

If the council agrees to fund a care home but the home you choose costs more than the council’s rate, a family member usually covers the difference. This is called a third-party top-up. It is separate from what the resident pays and must be set out in a written agreement.

MSIF council data (2025–26)

Regional self-funder averages

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Your gap, in 30 seconds

Enter your postcode and care type

We map your postcode to the responsible council, then compare its rate with local care home fees so you know what to expect.

Three things most families are not told

→A top-up can only be asked for if the council first offered a suitable home at its own rate. If no alternative was offered, the council should cover the full cost itself.
→Council rates vary by hundreds of pounds per week across England — the gap in your area may be very different from a national average.
→The cost adds up quickly. A £200/week extra payment is £10,400 per year — before any annual fee rise.

Compare all free tools: browse the tools hub · Looking for the bigger picture? See how long your savings will last · full 5-year Funding Guide (£69)

Read the rules: Care home top-up fees explained · How the means test works · Council vs self-funder by council