Care homes

Care home contracts: 10 terms to check before signing

The care home contract terms families should check before signing: fees, increases, deposits, notice, fees after death, and asking a resident to leave.

A care home contract is a consumer contract, so consumer law applies. The Competition and Markets Authority (CMA) has published guidance for care homes on fair terms. Ask for the contract before moving day and check these ten things.

  1. The weekly fee and what it covers. It should list what is included and what costs extra.
  2. Fee increases. How often, how much notice, and how the increase is worked out. Vague terms allowing any increase may be unfair.
  3. Deposits. How much, what it is for and when it is returned.
  4. Trial period. Whether there is one, and what notice applies during it.
  5. Notice period. How much notice either side must give.
  6. Fees after a death. Charging for a long time after a death is likely to be unfair; many homes now charge for only a few days.
  7. Hospital stays and absences. What is charged while the resident is away.
  8. If savings run out. Whether the home accepts council funding, and whether a top-up would be needed.
  9. Asking a resident to leave. The reasons and the process, including how the family is consulted.
  10. Complaints. How to complain, and that you can go to the Local Government and Social Care Ombudsman.

If the council arranges and pays for the placement, the contract is usually between the council and the home, with a separate agreement for any top-up.

Compare homes before you get to this stage with our 40-point checklist.

Common questions

What should a care home contract include?

A care home contract should set out the weekly fee and who pays it, what is included and what costs extra, how and when fees can rise, any deposit, the trial period, notice periods on both sides, what happens during hospital stays or after death, and how complaints are handled. Read it before moving in, and ask for any unclear or unfair terms to be explained or changed.

Source: Competition and Markets Authority

Free download

Free printable: 40 things to check in a care home

Print it before visiting: three columns, 40 questions on care, staffing, rooms, costs and the contract.

Reviewed by The Care Panel team on 21 October 2026. This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.

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