Dementia Tax Explained

What Is It & Why Should You Care?

Who has to pay for dementia care?


As dementia is not looked at as a healthcare need, it is not covered by the NHS. If your assets (including your home and savings) are worth:

Less than £14,250 — your local authority should pay the full cost;

£14,250-£23,250 — you’ll be expected to make a contribution, with your local authority paying the rest;

More than £23,250you will have to pay the full cost of your care. If you have a partner who still lives in a property that you both own then you won’t be forced to sell the property.


According to healthcare consultants LaingBuisson:

36% of dementia sufferers are fully council-funded;

13% are partly-funded by their local authority;

44% are entirely self-funded;

Just 7% are funded by the NHS.


How much does care cost?

The answer to this can vary based on location. A care home employs carers but use nurses when needed and a nursing home employs full time nurses.


South-East care home average £747 per week, nursing homes average £1,052 per week.

North-West care home average £530 per week, nursing home average £820 per week.

Because local authorities can use their buying muscle to negotiate better rates than an individual, people that have to pay
themselves end up subsidising those that are covered by the local authority.

According to Laing Buisson, the average self-funder pays £630 a week for a care home.

The Competition and Markets Authority claims that the additional weekly price of self-funding is £225.

In all local authorities and the NHS pay £9.3 billion a year on dementia care, people paying for themselves spend an incredible £14.5 billion a year.

The ‘dementia tax’ means the extra expense for dementia patients and their loved ones, whose responsibility it is to pay for long-term social care with little or no help from their local authority.

Simple Questionnaire

We start with a simple question and answer session to understand your circumstances.


Based on your questionnaire, we will research all possible options for you.

Legal Advice

You will then be given advice as to your potential next steps and the options that are available to you.

Worry Free

The decision to proceed with some or all of our recommendations is entirely down to you with no obligation.

You Are Not Alone & Help Is Available.