Care Home Contract Scotland: What to Check Before You Sign
Why Scottish Care Home Contracts Need Careful Reading
Moving a parent into a care home is one of the most consequential financial decisions a family will make. The contract you sign determines not just the weekly fee but how that fee can change, what services are included, what triggers additional charges, and under what circumstances your parent could be asked to leave.
In Scotland, care home contracts fall into two distinct categories depending on how the placement is funded. Council-funded residents are covered by the National Care Home Contract (NCHC), a standardised agreement negotiated annually between COSLA and care home provider associations. Self-funding residents sign a private contract directly with the care home, and these private contracts carry far fewer regulatory protections.
The National Care Home Contract
The NCHC sets standard weekly rates that local authorities pay to care homes for council-funded placements. For the 2026/27 financial year, the interim rates are £1,074.13 per week for nursing care and £930.45 per week for residential care. These rates are supposed to cover all core care, accommodation, and board costs.
If your parent is council-funded, the NCHC should mean predictable costs and standardised terms. The contract is between the council and the care home, with your parent as the named resident. The council pays the standard rate, and your parent contributes their assessed income minus the Personal Expenses Allowance (£37.65 per week in 2026/27).
The issue arises when care homes charge above the NCHC rate. If a care home's fees exceed the standard contract rate, the home may ask the family to pay a "top-up" to cover the difference. These top-up fees are a major source of financial pressure and family disputes.
Top-Up Fees: What the Rules Actually Say
Top-up fees in Scotland are subject to specific conditions. The local authority can agree to a top-up arrangement if the family actively chooses a care home that charges more than the standard rate, and a suitable alternative at the standard rate is available. The key word is "choice" — if the family selects a more expensive home when a cheaper one could meet the parent's assessed needs, the family can be asked to pay the difference.
What councils cannot do is require a top-up simply because no care home in the area will accept the NCHC rate. If there are genuinely no homes willing to accept the standard rate, the council has a duty to fund the placement at whatever rate is necessary. The obligation to secure care falls on the council, not the family.
Before agreeing to a top-up, ask the council in writing to confirm which alternative homes are available at the standard rate. If they cannot name any, challenge the top-up requirement through the council's formal complaints procedure.
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Private Contracts for Self-Funding Residents
If your parent's capital exceeds £36,750 (the 2026/27 upper threshold), they are a self-funder. Self-funders contract directly with the care home, and the NCHC does not apply. This gives care homes significantly more latitude on pricing and contract terms.
When reviewing a private care home contract, focus on these critical clauses:
Fee increase mechanism. How and when can the home increase its fees? Look for clauses that allow increases "at any time" or "at the home's discretion." A fair contract specifies how much notice is given (28 days minimum is standard) and ties increases to an objective benchmark, such as the Consumer Price Index or the annual NCHC uplift.
What is included and excluded. The weekly fee should clearly itemise what it covers. Core care, meals, laundry, heating, and activities should be standard inclusions. Watch for extras that get charged separately: hairdressing, chiropody, newspapers, escort services for medical appointments, and personal toiletries. These add up quickly.
Notice periods and termination. Under what circumstances can the home ask your parent to leave? A reasonable contract gives 28 days' notice, with longer for permanent residents. Watch for clauses that allow immediate termination for vague reasons like "behaviour that disrupts other residents" — these can be used to remove residents with challenging dementia symptoms.
Fee liability after death. Many contracts require the estate to continue paying the weekly fee for a defined period after the resident's death (commonly 7 to 14 days). Check this clause carefully and negotiate it down if possible.
Self-Funders Still Get Free Personal Care
Even if your parent is paying the full private rate, they remain entitled to the flat-rate Free Personal and Nursing Care (FPNC) contributions. For 2026/27, this is £260.30 per week for personal care, plus an additional £117.10 per week if the home provides nursing care. These payments are made by the council directly to the care home and should be deducted from your parent's bill.
Some self-funders are unaware of this entitlement and pay the full fee without claiming FPNC. Others are told by care homes that "it's already included" without seeing an itemised reduction. Request a clear breakdown showing the FPNC deduction as a separate line item on each invoice.
What to Do Before Signing
Do not sign a care home contract under time pressure. Hospital discharge teams and social workers may push for quick placement decisions, but you have the right to review the contract terms carefully. Take the document home, read it in full, and get a second opinion.
The Arranging Care for an Elderly Parent in Scotland guide includes a care home contract audit checklist that walks through each clause with specific red flags and questions to raise with the care home manager before committing.
If you believe a contract term is unfair, you can raise it with the care home manager, report it to the Care Inspectorate, or seek advice from Age Scotland's helpline on 0800 124 4222. For complex disputes involving significant sums, consider instructing an elder-law solicitor accredited by the Law Society of Scotland.
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