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Care Homes: Fees and Charges

Asked by Dan AldridgeLabourDepartment of Health and Social CareTabled Answered 7 May 2025UIN 47979

The question

To ask the Secretary of State for Health and Social Care, what measures his Department is taking to (a) monitor and (b) regulate care home fees.

Answered by Stephen Kinnock

Under the Care Act 2014, local authorities are tasked with the duty to shape their care markets to meet the diverse needs of all local people. This includes commissioning a diverse range of care and support services that enable people to access quality care.

Section 4.31 of the Care and Support Statutory (CASS) guidance states that when commissioning services, local authorities should assure themselves and have evidence that the contract terms, conditions, and fee levels for care and support services are appropriate to provide the delivery of the agreed care packages with the agreed quality of care. Further information on the CASS guidance can be found at the following link:

https://www.gov.uk/government/publications/care-act-statutory-guidance/care-and-support-statutory-guidance.

Fee rates are set by providers of adult social care, the majority of which are in the independent sector. The Department does not have powers to set or recommend the level of fees that care homes charge.

As part of our monitoring of the Market Sustainability and Improvement Fund grant conditions, and to understand fee rates more generally, local authorities are required to provide an annual return to the Department which includes data on the fee rates they pay care providers. The Government publishes this data annually, with the latest being available at the following link:

https://www.gov.uk/government/publications/market-sustainability-and-improvement-fund-2024-to-2025-care-provider-fees/market-sustainability-and-improvement-fund-msif-provider-fee-reporting-2024-to-2025

Please note this does not include data on fee rates for those that pay for their own care, known as self-funders.

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