Home Care Costs UK: Updated Rates for 2025–26

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Understanding home care costs in the UK is essential for families navigating care decisions – whether funding care privately or seeking support from local authorities. Since the outdated NHS recommendation of £17 per hour, actual home care costs have increased significantly. This article provides the most accurate figures available for 2025–26, helping you understand how much home care costs and plan for both day-to-day support and more comprehensive live-in care options.

Public-Funded Home Care Rate

In April 2025, the Homecare Association published an updated minimum price for homecare in England, stating that local authorities should pay at least £32.14 per hour. This rate accounts for increased staffing costs – including the National Living Wage of £12.21 per hour – as well as employer National Insurance, travel time, pension contributions, and administrative overheads. It represents the amount needed to sustainably deliver safe, quality care in line with legal requirements. Understanding how much home care costs per hour in the UK is key to assessing whether local authority support meets real needs.

Council-Funded Rates

Despite the updated benchmark, many local authorities fall short of the minimum standard. The average hourly rate paid by councils in England is just £24.10 – more than £8 per hour below the sustainable level. Alarmingly, 27% of publicly funded care contracts pay less than £22.71 per hour, which fails to cover even the legal minimum costs of care delivery. Only 1% of council contracts currently meet or exceed the £32.14 benchmark. This funding shortfall puts pressure on providers, contributing to staff shortages and inconsistent care standards. These issues directly impact home care costs for elderly people who rely on public funding.

Private Home Care – Self-Funder Rates

If you are funding care privately, you can expect to pay significantly more than public-funded rates. In 2025, self-funders are typically charged between £26 and £38 per hour for domiciliary care, depending on the region and complexity of support required. In most areas, the going rate is around £30 per hour. Urban locations such as London tend to see higher costs, while rural areas may offer slightly lower rates but with reduced service availability. This gives a clearer picture of how much in home care costs in real terms, especially for families managing budgets without local authority assistance.

Live-In Home Care Costs

For those needing continuous support, live-in home care offers an alternative to residential and nursing homes. This service typically costs between £1,250 and £1,650 per week, equating to an hourly rate of around £36 to £38. These figures include full-time personal care, companionship, and overnight assistance, all provided in the comfort of your own home. While it may seem expensive, many families choose this option due to the benefits of personalised care and the ability to remain at home. Comparing home care costs vs nursing home care costs UK-wide can help determine the most appropriate solution.

Why Rates Have Risen

Several factors have contributed to the rising cost of home care in 2025. The National Living Wage increased by 6.7% in April 2025, now standing at £12.21 per hour. Employer National Insurance contributions also rose from 13.8% to 15%, and the earnings threshold was lowered, adding further pressure to payroll budgets. While local authority budgets were increased slightly – by around 5.6% – this hasn’t kept pace with rising costs. As a result, the sector faces a funding gap estimated at £1.6 billion, threatening the long-term sustainability of care provision. These cost pressures ultimately impact how much home care costs per hour UK-wide, whether publicly or privately funded.

2025–26 Home Care Cost Summary Table

What This Means for You

If you’re relying on publicly funded care, it’s important to understand that the care you receive may be affected by the gap between actual costs and council payments. The recommended rate of £32.14 per hour ensures safe, high-quality service, but most providers receive significantly less – raising concerns about staffing and sustainability.

Self-funders should budget carefully, anticipating fees of at least £30 per hour for home care, or upwards of £1,250 per week for live-in support. Knowing how much home care costs helps families plan and avoid unexpected financial strain. These figures are particularly relevant when evaluating home care costs for elderly relatives or comparing options like residential or nursing home care costs UK-wide.

Final Thoughts

Home care is a vital part of the UK’s social care system, but it comes at a cost that continues to rise. This article has provided an up-to-date view of home care costs in the UK for 2025–26, helping individuals and families make informed decisions. Whether you’re accessing care through local authority funding or arranging it privately, being aware of the real home care cost ensures better planning and quality of life. For those managing care responsibilities, staying informed is the first step in finding the right support.

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