Care home top-up fees in Scotland: who pays and choice of home

In Scotland, a top-up (also called a third-party payment) is the extra amount a relative, friend or charity pays when a council-supported resident chooses a care home that costs more than the council will pay. For older people, the council usually pays the National Care Home Contract rate: £930.45 a week for residential care and £1,074.13 for nursing care from 6 April 2026. Residents can only top up from their own money in three limited situations, and every top-up must be agreed with the council before the move.

In short

• National Care Home Contract rates for older people in 2026/27: £930.45 residential and £1,074.13 nursing a week, from 6 April 2026. These include the free personal and nursing care payments.
• Under the Choice of Accommodation Directions 1993, your parent can choose any suitable home with a vacancy that will accept the council’s terms. A dearer home is possible if someone pays the difference.
• A third party can use any money to top up. The council counts the top-up as your parent’s notional income, so it is paid on top of their own assessed contribution.
• Residents can top up themselves only during the 12-week property disregard, under a deferred payment agreement, or if they are better off because of free personal or nursing care payments.
• The personal expenses allowance of £37.65 a week can never be used for a top-up.
• Self-funders with more than £36,750 pay the full fee, less £260.30 and £117.10 a week of free care payments. The top-up question arises when their capital falls to that level.

When a top-up arises

The Scottish Government’s Charging for Residential Accommodation Guidance (CRAG, updated March 2026) describes five funding routes. Only one involves a top-up:

In route 4, there can be up to three contracts: council and care home, resident and home (or council), and care home and the person paying the top-up. Read each one before signing. Our guide to care home contracts explains the clauses to look out for.

What the council pays in 2026/27

Most councils pay care homes for older people at the National Care Home Contract (NCHC) rate. For 2026/27 the rates rose from 6 April 2026:

The rate is the total the home receives for a council-supported resident, including the £260.30 personal care payment and, in nursing homes, the £117.10 nursing care payment. It is not an extra amount on top of them. Homes that charge more create the gap a top-up fills.

Worked example (illustrative fee)

Isobel, 86, has under £22,750 in savings and her house has been sold. She is council-supported and chooses a residential home charging £1,050 a week, because it is near her son.

Isobel still pays her own assessed contribution from her pension towards the £930.45, keeping £37.65 a week as her personal expenses allowance. The top-up is separate and comes from her son. If the home puts its fee up to £1,100 and the NCHC rate stays the same, the top-up rises to £169.55 a week. Agree in writing how fee increases will be shared before you sign.

Who can pay a top-up

A third party: relatives, friends or charities

CRAG says there are no restrictions on the money a third party uses. The council treats the payment as your parent’s notional income, so it cannot reduce their own contribution. The payer may be asked for evidence that they can afford the top-up over the long term. The council must be satisfied that the arrangement can be kept up for the whole stay.

The resident: only in three situations

Under the Community Care (Additional Payments) (Scotland) Regulations 2002, a resident can top up from their own resources only if they:

1. are in the 12-week property disregard at the start of a permanent stay. They can use savings above £22,750, but only for those 12 weeks.
2. have a deferred payment agreement, and the council agrees to defer some or all of the top-up against the value of the home.
3. are better off because of free personal or nursing care payments and have chosen to have the council arrange their care. They can use capital above £36,750, plus the amount their contribution fell because of those payments.

A resident can also use income, earnings or capital that the financial assessment ignores, except disregards linked to their former home. They can never use the personal expenses allowance. Our guide to selling a house to pay for care in Scotland covers the 12-week disregard and deferred payments in detail.

How top-ups are paid

The council can choose to collect the top-up and pay the home the full fee, or leave the payer to pay the home directly. If the council collects it and the payer misses payments, the council is still paying the home. That gives you more protection against a sudden demand from the home. Ask which method your council uses.

Send any payment to clear arrears straight to the council, so it is not counted as your parent’s capital.

Self-funders: what happens at £36,750

A self-funder is not “topping up”. They are paying the home’s full fee less the free care payments. The change comes when capital falls to the £36,750 upper limit. At that point the council assesses, and if the home charges more than the NCHC rate, the family may be asked to cover the difference or consider a move.

Contact the council a few months before savings reach £36,750, not after. Dumfries and Galloway, for example, asks residents to request a review as soon as savings fall below the limit, and gives the home four weeks’ notice of any funding change. Our guide to what happens when money runs out in a care home covers the wider picture.

If the top-up can no longer be paid

Tell the council and the home straight away. The council will review your parent’s needs. If nobody can pay the difference, it may offer a home that accepts its rate, which could mean a move. A move must take account of your parent’s wellbeing. Ask for a reassessment if moving could harm their health, for example with advanced dementia.

A top-up should be a real choice. If the council cannot offer any suitable home with a vacancy at its usual rate, ask it in writing to explain how it will meet your parent’s assessed needs without a top-up. Our guide to changing care homes explains how moves work in practice.

Mistakes to avoid

• Signing a top-up agreement with no cap on increases. Ask for a fixed amount, or a clear formula linked to the NCHC uplift each April.
• Paying the home directly without telling the council. Every top-up must be agreed with the council first.
• Using your parent’s personal expenses allowance. It is for their personal spending and cannot fund a top-up.
• Agreeing to be a “guarantor” for the whole fee. A relative is not legally liable for a parent’s fees unless they sign up to that. See am I responsible for my parent’s care home fees?

The rules in England are similar in principle but use different law and figures. See our guide to care home top-up fees in England, and our Scotland hub guide for the means test.

Frequently asked questions

What is a third-party top-up in Scotland?

It is an extra weekly payment, usually from a relative, that covers the gap between a care home’s fee and what the council will pay for a council-supported resident. For older people that is normally the National Care Home Contract rate: £930.45 a week for residential care and £1,074.13 for nursing care in 2026/27.

Can my parent pay their own care home top-up in Scotland?

Only in three situations: during the 12-week property disregard, using savings above £22,750; under a deferred payment agreement, if the council agrees; or if they are better off because of free personal or nursing care payments. They can never use the £37.65 weekly personal expenses allowance to top up.

What is the National Care Home Contract rate for 2026/27?

From 6 April 2026, the National Care Home Contract rate for older people is £930.45 a week for residential care, up from £881.98, and £1,074.13 a week for nursing care, up from £1,021.57. The rate includes the free personal care payment of £260.30 and, for nursing care, the free nursing care payment of £117.10.

Do self-funders pay top-ups in Scotland?

No. Self-funders with capital above £36,750 pay the home’s full fee, less any free personal care (£260.30) and nursing care (£117.10) payments. A top-up only becomes an issue once capital falls below £36,750 and the council starts paying. If the home charges more than the council rate, someone may then need to pay the difference.

What happens if we stop paying the top-up?

Tell the council and the home straight away. The council will review your parent’s needs and may offer a home that accepts its usual rate, which could mean a move. Any move must consider your parent’s wellbeing. If no suitable home is available at the council’s rate, ask the council how it will meet their needs.

Is a top-up counted as my parent’s income?

Yes. Scottish guidance treats a third-party top-up as the resident’s notional income. That makes sure it pays for the more expensive home rather than reducing your parent’s own contribution. Payments to clear arrears are different: send them straight to the council so they are not counted as your parent’s capital.

Sources

• Scottish Government: Charging for Residential Accommodation Guidance, March 2026 (CCD 1/2026)
• Scottish Government: choosing a care home guidance, Annex A Choice of Accommodation Directions 1993
• Glasgow City HSCP: National Care Home Contract increase 2026/27
• Dumfries and Galloway Council: paying for a care home 2026/27
• The Community Care (Personal Care and Nursing Care) (Scotland) Amendment Regulations 2026
• The National Assistance (Sums for Personal Requirements) (Scotland) Regulations 2026
• The National Assistance (Assessment of Resources) Amendment (Scotland) Regulations 2026

General information, not legal or financial advice. Figures for 2026/27, checked October 2026.

Reviewed by The Care Panel team on 29 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.