Care Home Top-Up Fees & Third-Party Payments
When Are Extra Care Fees Lawful?
If a local authority is contributing towards care home fees, it must offer at least one placement that meets assessed needs within its standard budget.
If a more expensive home is chosen, a “top-up fee” may be requested.
However, top-up arrangements must comply with strict Care Act 2014 rules.
If these rules are not followed, the arrangement may be unlawful.
We provide independent advice to help families understand whether a top-up request is appropriate — and what to do if it is not.
What Is a Care Home Top-Up Fee?
When Top-Ups May Apply
If a person chooses a care home that costs more than the council’s usual rate, a third party may agree to pay the difference.
This is known as a third-party top-up.
Who Can Pay a Top-Up?
In most cases, top-ups must be paid by a third party - such as a family member. The person receiving care cannot usually pay their own top-up unless specific exceptions apply.
When Top-Ups Should Not Be Required
If no suitable placement is available within the council’s budget that meets assessed needs, the authority cannot insist on a top-up simply because costs exceed its standard rate.
Key Rules Governing Top-Up Arrangements
Top-up agreements must comply with statutory guidance and be transparent, sustainable and voluntary.
Genuine Choice Requirement
A local authority must offer at least one suitable placement within its budget. Without genuine choice, a top-up may be unlawful.
Written Agreement
Top-ups must be supported by a written agreement setting out payment terms, review arrangements and what happens if payments stop.
Sustainability Assessment
Authorities should consider whether the third party can realistically sustain payments over time.
Risk of Breakdown
If a top-up arrangement fails, the council remains responsible for ensuring care needs are met. Families should understand the risks before agreeing.
When Top-Up Fees Become Disputes
Common issues include:
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No suitable home offered within budget
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Pressure to agree quickly
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Lack of clear written agreement
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Inadequate explanation of long-term cost risk
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Requests for the person in care to pay their own top-up unlawfully
Top-up arrangements can affect long-term financial stability. Independent review can clarify whether the arrangement complies with Care Act guidance.
Concerned About Care Home Top-Up Fees?
We provide:
✔ Review of placement suitability
✔ Assessment of council budget decisions
✔ Advice on lawful third-party agreements
✔ Representation in disputes
✔ Structured guidance before signing agreements
Understand your rights before committing to ongoing payments.
Frequently Asked Questions
No. A top-up must be voluntary and based on genuine choice of a more expensive placement.
Generally no, unless specific regulatory exceptions apply.
The council must ensure care needs continue to be met, but placement arrangements may need to be reviewed.
It can, depending on care home fee increases. This risk should be explained clearly before agreement.
Yes. If no suitable placement was offered within the council’s standard rate, the requirement for a top-up may be disputed.