Letter to dispute a care home fee increase: free template

Send this letter as soon as a care home tells you it is raising your relative’s fees and the increase looks unexplained, larger than the contract allows, or comes with too little notice. The Competition and Markets Authority (CMA) says care home contracts must explain clearly when and how fees can change, general reviews should normally happen once a year, and residents must get advance written notice so they can leave without penalty before a rise takes effect. A written dispute asks the home to justify the increase and to hold off applying it while you sort it out.

In short

• Under section 62 of the Consumer Rights Act 2015, an unfair term in a consumer contract is not binding on the resident. Terms that let a trader raise prices without a valid reason or a right to cancel are on the Act’s “grey list” (Schedule 2, paragraphs 11, 14 and 15).
• CMA advice (paragraph 4.41) says fee terms must set out the circumstances and the method for calculating any rise, and general reviews should be limited to once a year.
• CMA advice (paragraph 4.38(c)) says notice of changes should be at least as long as the notice the resident must give, and periods under 28 days are unlikely to be fair.
• A rise because care needs have increased should be backed by an assessment, follow consultation, and come with about 28 days’ notice and a route to independent review (paragraphs 4.52 to 4.53).
• If the council funds the place, any change to a top-up should go through the council, not be agreed privately with the home (CMA paragraphs 4.129 and 4.130).
• If the home does not resolve it, self-funders can go to the Local Government and Social Care Ombudsman, normally within 12 months of knowing about the problem.

When to use this letter and what to gather first

Use it when an annual increase is well above what the contract formula would produce, when a home announces a mid-year rise, when you get fewer than 28 days’ notice, or when a “change in care needs” increase arrives without any assessment you have seen. It is also for families paying a top-up who are asked to pay more directly to the home.

Before you write, collect:

• the residence agreement or contract, and the clause on fee reviews (our guide to care home contracts shows where to look);
• the letter or invoice announcing the increase, with the date you received it;
• the key facts sheet and past fee increase letters;
• the latest care plan and any recent dependency or needs assessment;
• if the council is involved: the care and support plan, personal budget and any written top-up agreement.

If you act under a lasting power of attorney or as a deputy, say so in the letter; if your relative manages their own affairs, they should sign or agree. See lasting power of attorney or deputyship.

A worked example

Say your mother pays £1,450 a week and the home announces a 10% rise. Her contract links annual increases to a published price index. If that index rose by 3% (an illustrative figure), the contract would support a much smaller increase.

The difference is £5,278 a year. Our care cost calculator helps you see how long savings will last at each rate.

Template letter: disputing a care home fee increase

Keep the grounds that apply and delete the rest. Address it to the registered manager and, for a group, the provider’s head office.

Print or save this letter as PDF

How to send it

• Send it by email to the manager and the provider’s complaints address, and keep the sent copy. If you post it, use a signed-for service.
• Send it before the increase takes effect if you can. If the new rate has already started, send it anyway and say from which date you dispute it.
• Keep paying the undisputed amount on time. The CMA says a home should not end a contract unless there are significant arrears, so paying the current fee protects your relative’s place while you argue about the increase.
• Set aside the disputed difference so you can pay it quickly if the increase turns out to be valid.

What happens next

The letter asks for a reply within 14 days. Expect one of three outcomes: they withdraw or reduce the increase; they explain the calculation and the contract clause; or they confirm the rise and say you can give notice if you do not accept it. Under CMA advice (paragraph 4.50), notice must arrive before the change takes effect so that the resident is free to leave and get a pro-rata refund of prepaid fees.

If the increase is properly calculated under a clear clause, you may have little ground to refuse it, and the choice becomes whether to pay or move. Compare the cost with other homes using our care home fees by county data, and read changing care homes before deciding. If you do decide to leave, use our notice to leave a care home letter.

If the rise will drain savings quickly, check when your relative will reach the £23,250 upper capital limit and ask the council for a needs and financial assessment in good time. See what happens when money runs out in a care home.

Council-funded residents and top-ups

When the council arranges and pays for a place, the contract is between the council and the home. The CMA says (paragraph 4.119) that any agreement the home asks the resident or family to sign should not conflict with that placement contract. A top-up is extra money paid because the family chose a home costing more than the personal budget. Under regulation 5 of the Care and Support and After-care (Choice of Accommodation) Regulations 2014, the top-up must be set out in a written agreement with the council, and that agreement must cover the effect of increases in the provider’s charges.

The statutory guidance (Annex A, paragraph 35) says the council must explain in writing how price increases may be shared, and that there is no guarantee rises will be split evenly. In practice:

• If the home writes to you directly asking for a higher top-up, do not agree. Forward it to the council.
• If the home says it will only keep your relative if you pay a “shortfall” privately, the CMA says this is likely to breach consumer law (paragraph 4.128).
• If you can no longer afford the top-up, the council must carry out a new assessment before it considers moving your relative (Annex A, paragraph 33).

More detail is in our guide to care home top-up fees.

Escalating the dispute

1. The home’s complaints procedure. Ask for the final response in writing.
2. The council, if it arranged or funds the place. Use its adult social care complaints procedure, normally within 12 months.
3. The Local Government and Social Care Ombudsman. It looks at privately funded care as well as council-arranged care. Complain once you have the home’s or council’s final response, or if they have not replied within a reasonable time, which the Ombudsman says is usually up to 16 weeks. The legal time limit is normally 12 months from when you first knew about the problem (Local Government Act 1974, section 34D for privately arranged care; section 26B for councils). The Ombudsman may say a pure contract dispute is better suited to a court.
4. Trading Standards. The CMA’s guide for residents says you can contact the Citizens Advice consumer helpline, which can pass complaints about unfair terms to Trading Standards.

For complaints about care quality rather than money, see how to complain about a care home and our complaint letter template.

Scotland, Wales and Northern Ireland

The Consumer Rights Act 2015 and the CMA advice apply across the UK. In Northern Ireland, regulation 5 of the Residential Care Homes Regulations (Northern Ireland) 2005 requires homes to give residents at least 28 days’ notice of any fee increase. In Scotland, council-funded residents may be placed under the National Care Home Contract, which requires the funding body to approve any additional charges for care, and the CMA’s guide says complaints can go to the Care Inspectorate. In Wales, top-ups are called “additional costs”. See top-ups in Scotland, in Wales and in Northern Ireland.

Frequently asked questions

Can a care home increase fees whenever it wants?

No. The CMA says fee terms must set out clearly when and how fees can change, and that general reviews should normally be limited to once a year. Terms giving a home an open-ended right to raise prices are likely to be unfair, and an unfair term is not binding on the resident under section 62 of the Consumer Rights Act 2015.

How much notice must a care home give of a fee increase?

Check the contract first. CMA advice says notice should be no shorter than the notice the resident must give to leave, and periods under 28 days are unlikely to be fair. In Northern Ireland the law requires at least 28 days. For a sudden, significant rise in care needs, the CMA accepts shorter notice, around seven days, with the option to leave without penalty.

Can a care home put fees up because my mum needs more care?

It can, but only fairly. The CMA expects the home to evidence the change in needs with an assessment, consult you, give advance written notice with reasons (around 28 days), and pause the notice period while an independent professional reviews any dispute. Fees should also go down if care needs fall.

Should I stop paying while I dispute a care home fee increase?

Keep paying the existing fee in full and on time, and say in writing that you are disputing only the increase. Setting aside the disputed difference means you can pay it quickly if the rise turns out to be valid. Withholding the whole fee risks arrears and notice to leave.

The care home wants a bigger top-up from me. Do I have to pay?

Not if the request comes only from the home. Where the council funds the place, top-up changes must be agreed with and through the council under your written top-up agreement. The CMA says asking for extra top-up payments without the council’s knowledge is likely to breach consumer law. Forward the request to the council.

Who can I complain to about a care home fee increase?

Start with the home’s complaints procedure. If the council arranged the place, complain to the council too. After a final response, or after up to 16 weeks without one, go to the Local Government and Social Care Ombudsman, normally within 12 months. The Citizens Advice consumer helpline can refer unfair terms to Trading Standards.

Sources

• UK care home providers for older people: advice on consumer law (CMA, GOV.UK)
• Care homes: consumer rights for residents and their families (CMA, GOV.UK)
• Consumer Rights Act 2015, section 62 (legislation.gov.uk)
• Consumer Rights Act 2015, Schedule 2 Part 1 (legislation.gov.uk)
• Care and Support and After-care (Choice of Accommodation) Regulations 2014, regulation 5 (legislation.gov.uk)
• Care and Support Statutory Guidance, Annex A (GOV.UK)
• Local Government Act 1974, section 34D (legislation.gov.uk)
• Residential Care Homes Regulations (Northern Ireland) 2005, regulation 5 (legislation.gov.uk)
• How to complain: Local Government and Social Care Ombudsman

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.