Care home contracts and fee red flags

What to check in a care home contract before you sign, the fee terms that catch families out, and your rights on fairness.

Published 2026-06-16 · A general guide, not legal, medical or financial advice.

The contract sets out what you pay and what you get, and it is legally binding, so it deserves careful reading. Take it away to consider, and do not feel rushed into signing on a first visit. The Competition and Markets Authority has set out rules on fairness for care home contracts, and terms that are unfair to consumers can be challenged and may not be enforceable.

What to check

• What the fee covers, and what is charged as an extra. Ask specifically about activities, outings, hairdressing, chiropody, escorts to appointments, and even some toiletries, as these vary widely between homes.
• How and when fees can rise, by how much, and how much notice you get. A fair contract is specific about this rather than leaving it open-ended.
• Notice periods on both sides, and crucially what is payable after a resident leaves or dies. Charging large fees for a long period after a death has been found to be unfair.
• Deposits and advance fees: how much, what they are for, and when they are refunded.
• Top-up fees: if a third party pays a top-up to council-funded care, exactly who is liable, how it can change, and what happens if they can no longer pay.

Red flags

• Large upfront payments, or fees charged for weeks or months after a death.
• Vague, open-ended terms about fee increases, with no cap or clear mechanism.
• Pressure to sign on the spot, or reluctance to let you take the contract away to read.
• Terms quoted verbally that differ from what is written down. Always rely on the written contract.

Your rights

Care home contract terms must be fair and transparent under consumer law. If a term looks unfair, ask for it to be changed before you sign, and get advice if you are unsure. The CMA's guidance on care home consumer rights, and Citizens Advice, explain in plain terms what is and is not acceptable, and what to do if you have already signed something that looks unfair.

Before you commit

Make sure the fees, the care plan and the contract all match what you were told on your visits. If the sales pitch and the small print disagree, trust the small print, and ask for the difference to be put right in writing. Finally, check that the home's CQC rating, report and rating history, which you can see on CareRadar, give you confidence in the care that sits behind the contract you are about to sign.