Can You Avoid Paying Care Home Fees? Legal Routes & Risks

Introduction

The question "Can you avoid paying care home fees?" sits at the intersection of hope and reality for thousands of families. The honest answer is: sometimes, but not in the way most people think.

This isn't about clever accounting or legal loopholes. It's about understanding the legitimate pathways that exist within the system, recognising what actually works, and being crystal clear about the consequences of getting it wrong.

Nellie Supports has worked with hundreds of families facing this exact question. What we've learned is that avoiding care home fees isn't binary. There are genuine legal routes. There are also serious risks. And there's a vast middle ground where families make decisions based on incomplete information and pay far more than they should.

This guide walks through the reality.

The Legal Routes to Avoid or Reduce Care Home Fees

Route 1: Continuing Healthcare (CHC) Assessment

This is the legitimate heavyweight champion of avoiding care home fees. If your relative qualifies for NHS Continuing Healthcare, the NHS pays all care costs. Full stop.

How it works:

• Your relative has a healthcare need that goes beyond social care

• The NHS completes a 28-day assessment

• If approved, the NHS funds 100% of care costs (including the care home placement)

• If your relative was already paying, you can recover backdated fees

  
  

What qualifies:

• Complex medical conditions requiring specialist nursing

• Multiple medications requiring regular monitoring

• Conditions requiring frequent medical interventions

• Palliative care needs

• Significant cognitive impairment affecting safety

  
  

The catch:

• Local authorities and NHS trusts often miss eligible cases

• The assessment process is subjective

• Many families are told "no" when the answer should be "yes"

• If you're already paying, you need to appeal to recover backdated costs

  
  

Your realistic chance of success:

• If your relative has genuine healthcare complexity: 60-70% approval rate

• If you appeal an initial refusal with expert evidence: 40-50% success rate

• If you appeal without evidence: 10-15% success rate

  
  

This is why expert assessment matters. A proper CHC assessment can recover tens of thousands in backdated fees.

Route 2: NHS-Funded Nursing Care (NFNC)

This is the middle ground. Your relative still pays for social care, but the NHS covers the nursing element.

How it works:

• Your relative needs nursing care but doesn't meet full CHC criteria

• The NHS pays a flat rate (currently around £163 per week) toward nursing costs

• You pay the remaining social care costs

  
  

What qualifies:

• Registered nurse involvement in care plan

• Ongoing nursing assessment needed

• Conditions like diabetes management, wound care, catheter care

  
  

The catch:

• The NHS rate hasn't increased significantly in years

• Care home fees have risen much faster

• You still pay the majority of costs

• Many care homes don't clearly separate nursing from social care fees

  
  

Your realistic chance of success:

• If your relative has nursing needs: 70-80% approval rate

• This is more straightforward than CHC but saves less money

  
  

Route 3: Local Authority Funding (Means Testing)

This isn't really "avoiding" fees, but it's legitimate cost reduction.

How it works:

• Your relative's assets are assessed

• Below £14,250: Local authority pays full social care costs

• £14,250 to £23,250: Your relative pays a contribution

• Above £23,250: Your relative pays full costs

  
  

The catch:

• The thresholds haven't changed since 2014

• Care home fees have risen 40-50% in that time

• Most families with modest savings end up in the contribution zone

• The contribution formula is complex and often miscalculated

  
  

Your realistic chance of success:

• If assets genuinely below £14,250: 95% approval rate

• If you're in the contribution zone: 100% approval, but you'll still pay significantly

  
  

Route 4: Deprivation of Assets Challenge (The Risky One)

This is where families sometimes go wrong. Understanding deprivation of assets is critical.

How it works:

• If you deliberately reduce assets to qualify for local authority funding, the local authority can treat those funds as still available

• This is called "deprivation of assets"

• The local authority can pursue you for the difference

  
  

What's legitimate:

• Spending on medical treatment

• Spending on reasonable living expenses

• Spending on home adaptations

• Spending on care-related costs before the assessment

  
  

What's not legitimate:

• Giving money to family members to avoid means testing

• Buying expensive items purely to reduce capital

• Transferring property to avoid assessment

• Creating trusts specifically to hide assets

  
  

The catch:

• The local authority has significant discretion here

• They can investigate back several years

• If they find deprivation, you're liable for the full difference

• They can pursue you in court

  
  

Your realistic chance of success:

• If you've spent legitimately on care: 90% chance local authority accepts it

• If you've made large transfers to family: 10% chance of avoiding challenge

• If challenged, defending costs £3,000-£8,000 in legal fees alone

  
  

This is not a route. It's a trap disguised as a route.

What Doesn't Work (But Families Try Anyway)

"We'll just refuse to pay and see what happens"

What happens:

• Care home takes legal action within 3-6 months

• County court judgment against you

• Bailiffs can be instructed to recover funds

• Your credit rating is damaged

• The debt can be pursued for 6 years

  
  

Cost of this approach: £15,000-£50,000 in legal fees and court costs, plus the original debt.

"We'll move them to a cheaper care home"

Reality:

• Most care homes in the same area charge similar rates

• Moving a relative with complex needs is traumatic and often medically inadvisable

• You're still liable for fees at the original home during notice period (usually 4 weeks)

• Cheaper homes often have lower staffing ratios and quality

  
  

Cost of this approach: Moving costs (£2,000-£5,000) plus emotional toll on your relative.

"We'll hide assets in cash"

Reality:

• Local authorities ask detailed questions about lifestyle and spending

• Care home staff notice if someone has significant cash

• Family members often inadvertently reveal the truth

• If discovered, you face deprivation of assets challenge plus potential fraud investigation

  
  

Cost of this approach: Criminal charges, civil recovery, and loss of trust.

"We'll use a trust to protect assets"

Reality:

• Trusts created specifically to avoid care fees are challenged as deprivation of assets

• The local authority looks at intent, not just structure

• Legal costs to defend: £5,000-£15,000

• If unsuccessful, you pay the full difference plus legal costs

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Cost of this approach: £10,000-£25,000 in legal fees, often with no benefit.

The Middle Ground: Legitimate Strategies That Actually Work

Strategy 1: Get a Proper CHC Assessment

This is the single most important action. If your relative hasn't had one, request it immediately.

Why it matters:

• 30-40% of people in care homes should qualify for CHC but don't

• Backdated recovery can be £50,000-£200,000+

• The assessment is free

• You have the right to appeal if refused

  
  

How to do it:

• Contact your local NHS Continuing Healthcare team

• Request a CHC assessment in writing (keep a copy)

• Provide detailed information about healthcare needs

• If refused, request the decision in writing

• Appeal if you disagree with the decision

  
  

Cost: Free (if you use Nellie Supports for expert assessment support: starting at £250 (for guidance)

Realistic savings: £52,000+ per Annum

Strategy 2: Challenge the Care Home Fees Themselves

Many care homes charge more than necessary or include services you're not using.

What to challenge:

• Top-up fees (additional charges beyond local authority rates)

• Service charges not clearly explained

• Charges for services not provided

• Escalation clauses in contracts

  
  

How to do it:

• Request a detailed breakdown of all charges

• Compare with other homes in the area

• Ask for written justification of top-up fees

• Negotiate if charges seem excessive

• Document everything in writing

  
  

Cost: Your time (or £500-£1,500 if using a professional)

Realistic savings: £2,000-£8,000 per year

Strategy 3: Optimise the Means Testing Assessment

If your relative is being assessed for local authority funding, ensure the assessment is accurate.

What to check:

• Are all assets correctly valued?

• Are disregarded assets (like the family home) properly excluded?

• Is the contribution formula correctly calculated?

• Have you claimed all available benefits?

  
  

How to do it:

• Request a detailed breakdown of the assessment

• Challenge any valuations you disagree with

• Provide evidence of asset values

• Ensure all income and benefits are recorded

• Ask for a reassessment if circumstances change

  
  

Cost: Your time (or £300-£800 if using a professional)

Realistic savings: £1,000-£5,000 per year

Strategy 4: Plan Ahead for Future Care

This is the only genuinely effective long-term strategy

What to do:

• Discuss care preferences and financial plans while your relative has capacity

• Consider equity release or downsizing before care is needed

• Explore care insurance products (limited but available)

• Understand power of attorney responsibilities

• Document decisions in writing

  
  

Cost: £500-£2,000 for professional advice

Realistic benefit: Reduces stress and prevents crisis decisions

The Real Risks of Trying to Avoid Fees

Financial Risks

• Court judgments: £15,000-£50,000 in legal costs

• Deprivation of assets challenge: Full cost recovery plus legal fees (£5,000-£15,000)

• Care home debt escalation: Original debt plus interest and enforcement costs

• Fraud investigation: Criminal charges and potential imprisonment

  
  

Relational Risks

• Family conflict: Disagreements about who pays what often destroy relationships

• Care home relationship breakdown: Disputes over fees can lead to your relative being asked to leave

• Loss of trust: If your relative discovers hidden assets or deception, it damages the relationship

  
  

Care Quality Risks

• Moving to cheaper homes: Often means lower staffing ratios and reduced quality

• Reducing services: Cutting back on activities or support affects your relative's wellbeing

• Care home resentment: If fees are disputed, staff may provide lower-quality care

  
  

When You Genuinely Can't Afford to Pay

This is different from "avoiding" fees. If you genuinely cannot afford care, there are legitimate options.

Option 1: Request a Financial Hardship Review

Local authorities have discretion to review funding decisions if you're in genuine hardship.

How to do it:

• Contact the local authority in writing

• Explain your financial situation

• Provide evidence (bank statements, bills, etc.)

• Request a reassessment

• Be prepared to discuss alternative arrangements

  
  

Realistic outcome: 20-30% chance of additional support

Option 2: Explore Charitable Support

Some charities help families facing care costs.

Examples:

• The Abbeyfield Society (housing and care)

• Counsel and Care (financial advice for older people)

• Age UK (local support and advice)

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Realistic outcome: £500-£5,000 in one-off support

Option 3: Negotiate Payment Plans

Many care homes will work with families facing temporary financial difficulty.

How to do it:

• Be honest about your situation early

• Propose a realistic payment plan

• Stick to the agreement

• Keep communication open

Realistic outcome: 60-70% of care homes will negotiate

The Bottom Line

Can you avoid paying care home fees? Sometimes. But the legitimate routes are narrow and specific. They're also often missed because families don't know to look for them.

The routes that actually work are:

1. Get a CHC assessment (potential recovery: £50,000-£200,000+)

2. Challenge excessive fees (potential savings: £2,000-£8,000 per year)

3. Optimise means testing (potential savings: £1,000-£5,000 per year)

4. Plan ahead (prevents crisis decisions)

   
   

The routes that don't work are:

• Refusing to pay without justification

• Hiding assets

• Creating trusts to avoid assessment

• Moving to cheaper homes

• Deprivation of assets schemes

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The difference between success and failure often comes down to expert guidance at the right moment. A proper CHC assessment at the beginning can save a family £100,000+. A deprivation of assets challenge at the end can cost £25,000+ and still fail.

If you're facing care home fees and wondering if there's a legitimate way to reduce them, the answer is almost always yes. But you need to know where to look.

What Nellie Supports Can Help With

We've helped hundreds of families navigate this exact situation. Our expertise includes:

• CHC assessments: Identifying missed eligibility and supporting appeals

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• Expert evidence: Providing professional assessment for tribunal challenges

• Financial planning: Optimising means testing assessments

• Care home negotiations: Supporting families in fee disputes

• Family mediation: Helping families navigate disagreements about payment

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If you're unsure whether your relative qualifies for CHC, or if you think care home fees are excessive, we can help you understand your options.

Next steps:

• Request a CHC assessment from your local NHS team (free)

• Contact us for guidance on whether you have grounds for appeal

• Get a professional assessment of your relative's care needs

The difference between paying £50,000 and recovering £100,000 often comes down to asking the right questions at the right time.

Frequently Asked Questions

Q: How long does a CHC assessment take? A: The NHS has 28 days to complete the assessment. In practice, it often takes 6-12 weeks.

Q: Can I appeal a CHC refusal? A: Yes. You have the right to appeal. If you have expert evidence supporting your case, your chance of success increases significantly.

Q: What if I've already paid for years before discovering CHC eligibility? A: You can still appeal and request backdated funding. The NHS can be required to reimburse several years of fees.

Q: Is it legal to give money to family members to reduce assets for means testing? A: Not if the intent is to avoid care funding assessment. This is deprivation of assets and can be challenged.

Q: Can I move my relative to a cheaper care home to reduce fees? A: You can, but you'll likely still pay similar rates. Most homes in the same area charge similarly. Moving is also traumatic for your relative.

Q: What happens if I refuse to pay care home fees? A: The care home can take legal action. You'll face a court judgment, legal costs, and potential enforcement action. This is not a viable strategy.

Q: How do I know if my relative needs a CHC assessment? A: If they have complex healthcare needs, multiple medical conditions, or require regular nursing input, they should be assessed. Request one from your local NHS team.

Q: Can I use a trust to protect assets from care funding? A: Trusts created specifically to avoid care funding are challenged as deprivation of assets. This is expensive and often unsuccessful.

Need advice? check out our services or speak to our team on 0333 987 5118