Care Home Fee Increases: Your Rights and How to Challenge

In short: Care home fee increases should normally come with at least 28 days’ written notice and be based on a clear method set out in your contract, according to the Competition and Markets Authority (CMA). A contract that lets a home raise fees whenever it likes is likely to be unfair. This guide explains what is allowed, what may not be, and how to challenge a rise, including going to the Ombudsman.

What your rights are on care home fee increases

A care home can increase fees only if your contract allows it, and the CMA says the contract must set out clearly when fees may change and how the change is worked out. The CMA is the UK competition and consumer regulator, and in December 2021 it re-issued its consumer law advice for care homes for older people. That advice is not itself a law, but it sets out how the CMA believes consumer law applies, and courts decide in the end.

The CMA’s guide for residents and families says you have consumer rights whether you pay all your fees or some or all are paid by the council or NHS. It states that if a term in a contract is unfair, it is not valid and the care home cannot hold you to it. Terms that may be unfair include those that allow the home to make unexpected changes to your fees.

This page focuses on England, with notes for the other nations at the end. It is general information about care home fee increases, not legal advice.

How much notice a care home must give

You should usually be given at least 28 days’ written notice of a change to fees, and be free to leave without penalty before it takes effect. The CMA’s residents’ guide says this directly, and the full advice for homes adds that less than 28 days is unlikely to be fair.

The CMA advice sets out more detail:

• The notice period should be no shorter than the notice you must give to end the contract.
• If you give notice to leave within that period, the increase should not apply during your notice period.
• You should get a pro-rata refund of any prepaid fees, and a full refund of any deposit, if you move out before the change takes effect.

The CMA also says notice and a right to leave are unlikely ever to be enough on their own for care home fee increases, because many residents are reluctant to move homes given the stress and possible harm to health. Moving is a last resort, which is why the other protections below matter. If a move is being considered anyway, see changing care homes.

When annual care home fee increases are fair

The CMA says a home should review fees no more than once a year, using a method set out in the contract that residents can understand in advance. It states that general fee reviews should be limited to once a year, for example on 1 January.

Wording the CMA regards as likely to be unfair includes terms saying fees will be reviewed and increased from time to time with notice, or that increases will reflect local market conditions, the wider national economic picture or unexpected costs. It also says terms that are merely “cost reflective”, “reasonable” or limited to “unexpected changes” are unlikely to be fair, because residents cannot foresee what they allow. It has concerns about caps and floors on annual rises as well, since a cap such as 15% can still leave a very broad discretion.

The CMA says that, while it is not the only way to comply, a home is more likely to be on safe ground where fees are reviewed yearly by reference to a published, verifiable price index named in the contract. Examples it gives include the rise in the Consumer Prices Index including housing costs (CPIH), or an average of CPIH and the National Living Wage increase. It also expects the contract to give a worked example of how fees could change and how they have changed in the past. An example of a likely fair term in the advice combines a named index, 28 days’ written notice and the right to leave before the rise applies.

Fee increases because care needs change

A home may raise the fee when care needs have changed significantly, but it must be able to justify the rise and should consult you first. These are the care home fee increases that cause most disputes. The CMA advice says there must be a significant and demonstrable change, evidenced for example through a recognised dependency tool, and any increase must be reasonable and proportionate.

The home should hold a meaningful conversation with the resident and their representatives and give advance written notice, for example 28 days, including the reasons, so the rise can be challenged or avoided. If there is a dispute, the CMA says the home should involve independent professionals, such as a multidisciplinary team, and the new rate should not be backdated. It suggests pausing the notice period while a dispute is resolved. Fees should also fall where needs reduce.

Where someone declines suddenly and needs extra care at short notice, the CMA says reasonable notice, for example seven days, is more likely to be fair, with the chance to have the assessment reviewed and to leave without penalty. The home can also charge more for an upgraded room or enhanced service you requested, provided you keep the choice of whether to pay. Our guide to residential or nursing home fees explains how nursing care affects the weekly bill.

If the council pays all or part of the fees

When the council funds the place, the fee is governed by the council’s contract with the home, so ask the council before accepting any change. Care home fee increases can still reach you indirectly, for example through a top-up. The CMA advice says terms in any agreement the home asks a council-funded resident to sign should not conflict with the placement contract it holds with the public body.

If a relative pays a top-up, the statutory guidance for England requires the council to set out in writing how price rises will be dealt with and shared, and says there is no guarantee they will be shared evenly. See our guide to third party top up fees for the detail. The CMA also says that where a home accepts residents funded through NHS continuing healthcare, it should not charge any top up.

For nursing homes, the NHS-funded nursing care rate rose on 1 April 2026 to £267.68 a week. The CMA says contracts should explain what happens to a resident’s own contribution if the NHS payment changes, so ask the home to show how that change affects your bill. Our council care rates guide explains how councils set what they pay.

How to challenge a fee increase, step by step

Start by asking the home for the contract clause, the calculation and the reasons in writing, then compare them with what you signed. A calm written query about care home fee increases often resolves a mistake without a formal complaint.

1. Check the contract for the fee review clause, the notice period and any named index.
2. Write to the manager asking how the new fee was calculated and which clause allows it.
3. Check whether the notice period meets what the contract and the CMA advice say, and whether you can still move out before the rise takes effect.
4. If it is a change in care needs, ask for the assessment, the tool used and the independent review the CMA says should be available in a dispute.
5. If it is not resolved, use the home’s complaints procedure. The CMA says it must be in writing, easy to find and use, and set clear timescales.

Think carefully before withholding any payment. Get advice from Age UK, a solicitor or a local advice service first, because non-payment can itself become a dispute. The Age UK Advice Line is free on 0800 678 1602, open 8am to 7pm, 365 days a year.

A home must never ask you to leave, or restrict visits, in retaliation for a complaint, according to the CMA advice. If you suspect unfair terms, councils’ Trading Standards services can bring court proceedings to stop breaches of consumer law, as can the CMA.

Complaining to the Ombudsman

If the home’s own complaints process does not resolve the problem, you can complain to the Local Government and Social Care Ombudsman, even if you pay your own fees. The Ombudsman says it looks at adult social care complaints, including care that is funded privately without council involvement. It is free to use.

You usually need to complete the provider’s complaints process first, though you can come to the Ombudsman if you have not had a response within a reasonable time, which it says should in most cases be up to 16 weeks. It normally cannot look at a complaint if more than 12 months have passed since you first knew about the problem, so do not delay. You can complain on someone else’s behalf with their permission or if you have a legal right to act for them.

Our guide to how to complain about a care home explains each stage, and Age UK sets out how to complain if the council funds the place.

Scotland, Wales and Northern Ireland

The CMA’s advice is addressed to care homes across the UK, but complaints routes differ in each nation. In Northern Ireland, the CMA notes that regulations require a registered care home to give at least 28 days’ notice of any increase in residential fees.

For the final stage of a complaint, the relevant bodies are the Public Services Ombudsman for Wales, the Scottish Public Services Ombudsman and the Northern Ireland Public Services Ombudsman. The CMA says that, in Northern Ireland, the Ombudsman is the final stage unless the resident is entirely privately funded, and that in Scotland it can investigate only how the Care Inspectorate handled a complaint. Ask the home for its complaints procedure to see which route applies to you.

Frequently asked questions

How much notice must a care home give before raising fees?

The CMA’s residents’ guide says you should usually be given at least 28 days’ notice, and that you should be able to leave without penalty before the change takes effect. Its advice to homes says less than 28 days is unlikely to be fair.

Can a care home increase fees whenever it wants?

No. The CMA says a contract giving a home an unlimited right to increase fees is likely to be unfair. Terms must set out the circumstances in which fees may change and how the change is calculated, and general reviews should be limited to once a year.

Is a care home allowed to link increases to inflation?

Yes, this is one approach the CMA suggests is more likely to be fair, provided the contract names a published price index, explains it clearly and gives a worked example. Examples in the advice include CPIH or an average of CPIH and the National Living Wage.

Can the fee go up if care needs increase?

Yes, but only where there is a significant and demonstrable change in needs, supported by evidence. The CMA says the home should consult you, give written notice, involve independent professionals if there is a dispute, and reduce fees where needs fall.

What if I think a fee rise is unfair?

Ask the home in writing which contract clause allows it and how it was calculated, then use its complaints procedure if unresolved. After that you can go to the Local Government and Social Care Ombudsman. Get advice before withholding any payment.

Can I complain to the Ombudsman if I pay my own fees?

Yes. The Local Government and Social Care Ombudsman says it looks at adult social care complaints, including privately funded care, and that its service is free. You normally need to complete the provider’s process first and complain within 12 months.

Can a home ask me to leave if I complain about a fee rise?

The CMA says a home must never ask a resident to leave, or restrict visitors, in retaliation for a complaint. A home may ask someone to leave only for valid reasons set out in the contract, after consultation, and with at least 28 days’ written notice.

Official sources

• GOV.UK (CMA): Care homes consumer protection case, advice re-issued 8 December 2021
• GOV.UK (CMA): Care homes, consumer rights for residents and their families
• Local Government and Social Care Ombudsman: How to complain
• Local Government and Social Care Ombudsman: Adult social care
• Age UK: How to make a complaint about a care home
• GOV.UK: NHS-funded nursing care rates 2026/27

This page is general information, not legal, medical or financial advice. The Care Panel is an independent guide and is not part of any government body or care provider. Last checked 9 November 2026.

Related: How to complain about a care home · Average care home fees in the UK · Paying for care in England

Reviewed by The Care Panel team on 9 November 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.