Care Home Top-Up Payments — What They Are and What You Need to Know Before You Agree

A top-up payment — sometimes called a third-party contribution — is the difference between what a local authority will pay for a care home placement and the actual fees the care home charges. If your loved one is council-funded but wishes to live in a home that charges more than the council's standard rate, a third party — usually a family member — is asked to pay the difference.

Who can pay a top-up?

It must be a third party, not the person receiving care. The person in care generally cannot pay their own top-up from most income or capital. The third party is usually a family member, friend, or charity — but must be someone who is genuinely able and willing to commit to an ongoing payment. This is not a one-off cost; it is typically a weekly payment that continues for the duration of the placement.

What are your rights?

The council is legally required to offer a genuine choice of accommodation within its standard rate. A top-up should only arise when a person actively chooses a more expensive home than the council's rate covers. If no suitable home is available within the council's rate in your area, the council may be required to increase its contribution rather than expecting a top-up. Families are not always made aware of this.

What to watch out for

Top-up payments can increase over time as care home fees rise, and the agreement you sign at the start may not cap future increases. Always get the full terms in writing, understand when and by how much fees can be reviewed, and be clear on what happens if circumstances change and the third party can no longer afford the payment. In Bromley, Croydon, Greenwich, Sevenoaks and Tunbridge Wells — where care home fees are above national averages — top-up payments are particularly common and can be substantial.

We help families understand exactly what they are and are not obliged to pay before anyone signs anything. Speak to us →