How Much Does a Care Home Cost in 2025?
Real pricing from Cheltenham, Gloucester, Cirencester, Stroud & across the Cotswolds
Quick Answer
- Residential care: £900 - £1,200/week (£46,800 - £62,400/year)
- Nursing care: £1,200 - £1,500/week (£62,400 - £78,000/year)
- Dementia care: £1,100 - £1,600/week (£57,200 - £83,200/year)
- Respite care: £120 - £180/day (short-term stays)
Based on data from 24 CQC-registered care homes across Cheltenham, Gloucester, and the Cotswolds
Understanding Care Home Costs
Care home fees represent one of the largest financial commitments families face. With costs ranging from £46,800 to £78,000 annually, understanding what you're paying for and exploring funding options is essential.
The price difference between a £900/week care home and a £1,800/week facility isn't always obvious from brochures. Location, care type, staff ratios, and CQC ratings all play crucial roles. This guide breaks down exactly what you're paying for and how to ensure you get fair value.
Care Home Cost Breakdown by Type
| Care Type | Weekly Cost | Annual Cost | What's Included |
|---|---|---|---|
| Residential Care | £900 - £1,200 | £46,800 - £62,400 | Personal care, meals, activities, no nursing staff |
| Nursing Care | £1,200 - £1,500 | £62,400 - £78,000 | All residential services PLUS 24/7 registered nurses |
| Dementia Care | £1,100 - £1,600 | £57,200 - £83,200 | Specialist dementia unit, trained staff, secure environment |
| Respite Care | £120 - £180/day | £840 - £1,260/week | Short-term stays (1-4 weeks), same services as permanent |
| End-of-Life Care | £1,300 - £1,800 | £67,600 - £93,600 | Palliative care, higher staff ratios, 24/7 nursing support |
Cotswolds Regional Price Differences
Location significantly affects care home costs across the Cotswolds. Here's what you can expect to pay in each area:
Cheltenham
£1,000 - £1,800/week
Premium spa town pricing. Highest costs in the region but excellent facilities. 8 CQC-registered homes, 87.5% rated "Good" or better.
Annual: £52,000 - £93,600
Gloucester
£900 - £1,500/week
Best value in the region. Save £15,600-£18,200/year vs Cheltenham. 4 quality homes, 75% rated "Good". Close to Gloucestershire Royal Hospital.
Annual: £46,800 - £78,000
Cirencester
£950 - £1,400/week
Market town rates. Good balance of cost and quality. Historic Cotswolds setting. Limited choice but strong community feel.
Annual: £49,400 - £72,800
Stroud
£900 - £1,350/week
Competitive pricing with countryside setting. Several independent homes with personalized care. Good M5 access for family visits.
Annual: £46,800 - £70,200
Tewkesbury
£900 - £1,300/week
Affordable option near Gloucester. Historic abbey town atmosphere. Smaller homes with family-run feel.
Annual: £46,800 - £67,600
Rural Cotswolds
£950 - £1,450/week
Village locations, beautiful settings. Converted manor houses common. Limited availability but unique character.
Annual: £49,400 - £75,400
💡 Real Cost Example: The £18,200 Annual Difference
A family member needed nursing care. We visited care homes in both Cheltenham and Gloucester with similar CQC ratings ("Good").
Cheltenham Nursing Home
£1,500/week
£78,000/year
Gloucester Nursing Home
£1,150/week
£59,800/year
By choosing the Gloucester home—which had excellent staff, activities, and food quality—we saved £18,200 annually without compromising care quality. The only difference? Location.
The lesson? Don't assume higher price means better care. Visit multiple homes, compare CQC reports, and evaluate value objectively.
What Should Be Included in Care Home Fees?
Standard care home fees should always include these essentials:
🔍 Common Extra Costs to Budget For
These services typically cost extra—always ask for the full fee schedule upfront:
Hairdressing
£10-£25/session
Weekly/fortnightly
Chiropody
£25-£45/session
Every 6-8 weeks
Newspapers/Magazines
£2-£5/day
Daily
Outings & Trips
£5-£30/outing
Weekly/monthly
Continence Supplies
£20-£60/month
Ongoing
Specialist Equipment
£50-£500
One-time or rental
TV License
£159/year
Annual
Clothing Replacement
£200-£500/year
As needed
💰 Budget an extra £100-£250/month for typical additional costs beyond base fees.
💰 How to Pay for Care Home Fees
Most families combine multiple funding sources. Here are your main options:
1. Self-Funding (Private Pay)
Who qualifies: Anyone with savings/assets over £23,250
Coverage: You pay the full weekly fee
Advantages: More choice of homes, no assessment delays, better rooms often available
2. Council Funding (Local Authority)
Who qualifies: Savings/assets under £23,250
Gloucestershire rates: £725/week (residential), £875/week (nursing)
Reality: Most homes require top-up fees of £100-£400/week from family
3. NHS Continuing Healthcare (CHC)
Who qualifies: Primary need is healthcare (complex medical needs)
Coverage: 100% of care home fees
Reality: Only ~7% of residents qualify. Assessment takes 3-6 months. Worth applying.
4. NHS-Funded Nursing Care (FNC)
Who qualifies: Anyone in a nursing home (registered nurse on-site)
Coverage: £219.52/week towards fees
Application: Automatic assessment after admission—ensure your home applies
5. Deferred Payment Agreement
What it is: Council loan secured against property value
Advantage: Avoid forced house sale—repay when property sells
Cost: Interest charged (currently ~4.7%) + setup fees ~£900
6. Attendance Allowance
Who qualifies: Age 65+ with care needs for 6+ months
Amount: £72.65/week (lower rate) or £108.55/week (higher rate)
Note: Not means-tested, but stops once you move into a care home (applies beforehand)
📖 Read our complete funding guide for detailed eligibility criteria, application processes, and real-world examples.
🚩 Cost-Related Red Flags to Watch For
Reputable homes provide detailed fee schedules showing base cost and all possible extras. Vague pricing = hidden fees later.
Standard is 2-4 weeks deposit plus first month. Demanding 3 months upfront is aggressive and unnecessary pressure.
Annual increases (typically 3-5%) are normal. But multiple increases per year or surprise charges for "increased care needs" without proper assessment are red flags.
What happens if your loved one passes away or moves out? Reputable homes have clear notice periods (typically 2-4 weeks) and refund policies. No policy = risk of losing thousands.
If a home charges £700/week when similar homes charge £1,000+, ask why. Poor CQC rating? High staff turnover? Minimal activities? There's always a reason.
Frequently Asked Questions
How much does a care home cost in the Cotswolds?
Care home costs in the Cotswolds typically range from £900-£1,200/week for residential care (£46,800-£62,400/year) and £1,200-£1,500/week for nursing care (£62,400-£78,000/year). Cheltenham tends to be 10-15% more expensive than Gloucester, while rural locations and market towns fall in the middle.
Why do some care homes charge £900/week while others charge £1,800/week?
Price differences reflect: location (Cheltenham vs Gloucester = £350/week difference), care type (nursing costs £200-£300/week more than residential), room type (en-suite vs shared adds £100-£150/week), CQC rating (Outstanding homes charge premium), staff ratios (1:6 vs 1:8 affects cost), facilities (gardens, cinema rooms, therapy pools), and ownership (chains vs independent). Higher price doesn't always mean better care—check CQC reports.
What's included in care home fees?
Standard fees should include: accommodation (room, furniture, utilities), all meals and snacks (3 meals + tea/coffee), personal care (washing, dressing, toileting), laundry services, activities and entertainment, medication management, emergency call systems, and basic toiletries. Extras typically NOT included: hairdressing (£10-£25), chiropody (£25-£45), newspapers, specialist equipment, and outings. Always request full fee schedule upfront.
Can I get help paying for care home fees?
Yes. Council funding available if assets under £23,250 (Gloucestershire pays £725/week residential, £875/week nursing—usually requires family top-up). NHS Continuing Healthcare provides 100% funding if primary need is healthcare (~7% qualify). NHS-Funded Nursing Care pays £219.52/week for all nursing home residents. Deferred Payment Agreements let you borrow against property equity. Attendance Allowance provides £72.65-£108.55/week before admission. Most families combine 2-3 sources.
Do care homes increase fees every year?
Yes, annual fee increases of 3-5% are standard, typically implemented in April. This covers inflation, wage increases, and rising operational costs. Good homes notify families 3-6 months in advance. Additional increases may occur if care needs significantly increase (e.g., moving from residential to nursing care level). Always ensure contract specifies maximum annual increase percentage and notice period required.
Is it cheaper to move to a care home outside the Cotswolds?
Possibly, but consider total costs. Care homes in Worcester or Hereford may be £100-£200/week cheaper (£5,200-£10,400/year). However, factor in: family travel costs for visits (£20-£40/visit × 52 weeks = £1,040-£2,080/year), emotional impact of distance on resident wellbeing, loss of local connections and community, and difficulty attending appointments. For most families, staying local provides better value when considering all factors.
What questions should I ask about costs during care home visits?
Essential cost questions: Can I see your full fee schedule including all extras? What's your annual fee increase policy? What notice period for fee changes? What happens to fees if care needs increase? What's your refund policy if resident moves/passes away? What's included vs extra costs? Do you accept council funding (and required top-up)? What deposit is required? Can I see a sample contract? Do you help families apply for NHS-FNC or CHC funding? Request everything in writing before committing.
Should I negotiate care home fees?
It depends. Chain-operated homes typically have fixed pricing with limited flexibility. Independent homes may negotiate, especially: if room has been empty for months, for couples sharing a room, if paying 6-12 months upfront, or if moving from higher-cost home in same group. Don't expect huge discounts (£50-£100/week maximum), and ensure any agreed reduction is documented in contract. Never compromise on care quality for price—focus on value and appropriateness instead.
Ready to Find Quality Care at Fair Prices?
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