Moving to a care home in another area: who pays and your rights

If a council arranges and pays for a care home place in another council’s area, the council that made the arrangement generally stays responsible for funding. A self-funder who moves on their own is treated differently: they usually become the new area’s responsibility. The rules sit in the Care Act 2014 and its statutory guidance, and they apply in England.

At a glance

• Councils can only be required to meet the needs of people who are “ordinarily resident” in their area.
• A person placed in a care home out of area by a council is treated as still living in the first council’s area.
• A self-funder who chooses to move to another area and later runs out of money applies to the new area’s council.
• If the council funds you, you can choose a home outside its boundary, subject to four conditions.
• A third-party top-up is allowed if you pick a dearer home, but never because the council lacks an affordable option.

What does “ordinarily resident” mean?

Ordinary residence decides which council must meet a person’s eligible care needs. The Care Act does not define it, so the statutory guidance uses its ordinary meaning, based on the court case Shah v London Borough of Barnet: a place a person has adopted voluntarily and for settled purposes, whether for a short or long time.

The guidance adds that someone can become ordinarily resident as soon as they move, and that there is no minimum period of living somewhere. Owning a property in another council’s area does not stop that. Where a person lacks the mental capacity to choose where to live, councils apply the same approach but ignore whether the move was voluntary. Our guide to the Care Act 2014 and your rights covers the wider duties.

Who pays if the council arranges a care home in another area?

The Care Act has a “deeming” rule. Where a council arranges a care home place (or shared lives or supported living) because the person’s needs can only be met in that kind of setting, the person is treated as staying ordinarily resident in the area where they lived just before the council began arranging care. The first council keeps responsibility and does not hand it to the area where the home is.

This continues for as long as the person’s eligible needs are met in one of those specified types of accommodation, even if they move between homes in other areas. It can end if their needs change so that a specified type of accommodation is no longer required. The council that places someone should also tell the host council and agree who pays for local services, such as day care, before the move.

The deeming rule does not catch people who arrange their own home in another area. The guidance says someone who moves to a different area of their own volition, without the council arranging it, would be likely to acquire ordinary residence there.

What if I am a self-funder and my money runs low?

Self-funders who arrange their own care and choose to move to another area, then find their funds have gone down, can ask the new area’s council for a needs assessment. If they have eligible needs, the guidance says their ordinary residence is where they moved to, not the first area.

The guidance gives a worked example. A woman in council A’s area moves to a care home in council B’s area as a self-funder, signs her own contract, then runs out of money. She is found to be ordinarily resident in council B’s area, because she moved voluntarily and for settled purposes before any council arranged her place. Council B therefore assesses and funds her.

The rules about self-funding care are set out in our guide. The capital limits in England are £23,250 (upper) and £14,250 (lower), and our money running out guide explains the process step by step.

Can I choose a care home in a different area if the council pays?

Yes. The statutory guidance says a person whose needs are to be met in a care home has a right to choose between providers, and this choice must not be limited to homes the council already contracts with or homes inside its boundary. The council must still arrange a place outside its area if you prefer it. Four conditions apply.

When setting your personal budget for an out-of-area home, the council should have regard to the cost of care in that area. If it cannot meet your choice, it must explain why in writing and offer suitable alternatives. See also our guide on choosing a care home when the council pays and council care rates.

When can a top-up fee be charged?

If you choose a home that costs more than your personal budget, the difference is called a top-up. The guidance says the council must arrange the place provided a third party (or, in limited cases, the resident) is willing and able to pay it. A written agreement must set out the amount, frequency, who is paid, reviews and what happens if payments stop.

Two rules protect you. A person must not be asked to pay a top-up because of market gaps or commissioning failures, and the council must make sure at least one option is affordable within your budget. And a resident can pay their own top-up only in limited cases: during a 12-week property disregard, under a deferred payment agreement, or where accommodation is provided as mental health aftercare under section 117. Read care home top-up fees before agreeing to one.

What if the two councils disagree?

Care must not be delayed. The guidance says a question about ordinary residence must not hold up meeting needs, and where councils dispute it, the council already meeting the need must keep doing so until it is settled. If nobody is meeting the need, the council where the person is living takes provisional responsibility. Disputes go to the Secretary of State or an appointed person if councils cannot resolve them. The person cannot bring the dispute themselves if the councils agree.

Different rules apply to mental health aftercare under section 117 of the Mental Health Act 1983. Under current rules the council responsible stays the one where the person was ordinarily resident immediately before being detained, even if they later move. The Mental Health Act 2025 will change some section 117 rules as it is phased in, including who is responsible for people placed out of area, so ask the council which rules apply.

What if the move is between England, Scotland, Wales or Northern Ireland?

This guide covers England. Charging and funding rules differ in the other nations, so speak to both councils before a cross-border move. Our guides on paying for care in Scotland, Wales and Northern Ireland explain the differences. If you move home and already receive council support, the guidance expects both councils to work together so that your care continues without a gap.

Frequently asked questions

Which council pays if I move to a care home in another county?

It depends on who arranges the move. If your current council arranges the placement, it generally keeps paying. If you arrange and fund the move yourself, you usually become ordinarily resident in the new area and apply to that council if you later need help.

Can a council refuse to fund a home outside its area?

Not just because it is outside the area. The council must arrange your preferred home if it is suitable, available, willing to contract on the council’s terms, and not dearer than your personal budget. If it refuses, it must explain in writing.

Do I have to pay a top-up if the council cannot find a cheaper home?

No. A top-up must be a genuine choice for a dearer home. If the only suitable homes cost more than your budget because of a gap in local provision, the council must adjust the personal budget and not ask for a top-up.

Does moving areas affect my assessment?

Yes, if your ordinary residence changes. The new council carries out its own needs assessment and builds a new care plan. If you already receive council support, both councils are expected to share information and agree arrangements before you move.

Who decides my ordinary residence?

The councils involved decide it first. They must not let a disagreement delay your care. If they cannot agree, the dispute can be referred to the Secretary of State or an appointed person for a decision.

Where to get help next

Ask the council’s adult social care team for a needs assessment, and consider a free independent advocate (see what is advocacy in social care). Our funding checker gives a first idea of who pays, and Find care lets you search homes in the area you are considering. If a home or council gets it wrong, see how to complain. After a move, GOV.UK asks you to report a care home stay to each benefit provider, and the NHS lets you register with a GP near the new address without proof of address: our who to inform checklist covers both.

Sources

• GOV.UK: Care and Support Statutory Guidance (chapters 8, 19 and 20, Annexes A and H)
• GOV.UK: Claiming benefits if you are going into a care home
• NHS: How to register with a GP surgery

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.