Before you sign the care home contract, know what is normal, what is unusual and what is worth challenging
A care home contract is signed at the worst possible moment: the day of admission, by an exhausted relative, with a room that is about to go to someone else. Most are fine. Some hide the fee increase clause, the after-death charge, the top-up that quietly doubles. We read it in two working days and tell you what to ask – from the experience of having written these contracts ourselves.
Where the money is in a care home contract
The weekly fee is the number everyone looks at. It is rarely where the trouble is. The trouble is in four other places, and the Competition and Markets Authority has been telling homes to fix them since 2018.
The increase clause
“Fees are reviewed annually” means nothing. A formula (CPI plus a percentage), a notice period and a cap mean something. Increases of 8–12 per cent a year are common where the clause is vague.
Fees after death
The CMA says charges after death should stop within a few days once the room is cleared. Some contracts charge a month. On a £1,400 week that is a difference of several thousand pounds at the hardest moment.
The top-up
A third-party top-up is a contract between the family and the council, not the home – yet homes routinely collect it directly and increase it without the council’s agreement. Who pays what, in writing, or it will grow.
Needs change
If care needs increase the home may add a nursing fee, a one-to-one charge, or serve notice. The contract should say which, and how the assessment is done.
Care home contract and fee review
The twelve-clause check
Check the contract against the twelve things the CMA says it must do
Tick each thing the contract clearly covers. The result tells you whether to sign, ask questions first, or get it reviewed. Nothing you tick is stored or sent.
Questions about care home contracts
Can we negotiate the fee?
Sometimes, and more often than families think – particularly for a self-funder in a home with empty rooms. What makes a fee negotiable is a written statement of need; what makes an increase negotiable is a clause that says how it is calculated.
The home wants a deposit and four weeks in advance. Is that normal?
A deposit equal to a few weeks’ fees, held separately and returned promptly, is normal. Non-refundable “admission fees” are not, and the CMA has challenged them.
They gave us the contract on the day. Do we have to sign?
No. Ask for it in advance – the CMA says homes should provide key terms before admission. If the room will not wait, sign with a note that you are reviewing the terms and will raise queries within seven days.
What if the council is paying?
Then the contract is between the council and the home, and you should sign nothing except a top-up agreement – and only if you understand and can afford it. Read the top-ups page first.
Is this legal advice?
No. It is an experienced care operator’s and clinician’s view of what is normal and what is not, against the CMA guidance. For a dispute or a contract that needs rewriting we introduce a solicitor from our partner network.
Send us the contract before you sign it.
Free 20-minute call; written review in two working days.
No pressure. No care-provider commissions. A written next-step note after every free call.