Funding increase for nursing in care homes, government announces

NHS funding given to care homes to provide registered nursing care will increase by 5.4%, the government has announced.

For 2026/27, the Department of Health and Social Care (DHSC) has confirmed the standard weekly rate per resident, provided for NHS-Funded Nursing Care (FNC), will increase from £254.06 to £267.68 from 1 April.

The higher weekly rate will increase from £349.50 to £368.24.

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NHS-funded nursing care (FNC) is used to cover the costs of registered nursing care in care homes and is paid directly by the NHS.

The DHSC said around 80,000 residents will benefit from the nursing funding boost, which is hoped to reduce the pressure on hospitals by ‘preventing unnecessary admissions’ and support the discharge of individuals into social care settings to free up hospital beds.

Despite concerns last year about ‘significant challenges and cost pressures’ within the sector notwithstanding a 7.7% funding increase, this year’s rise has been welcomed by Care England.

However, calls are being made to ensure that recognition of social care needs is being reflected locally.

Professor Martin Green, chief executive of Care England, said: ‘This increase in the funded nursing care rate is a welcome step and reflects the growing cost of providing nursing care.

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‘Nursing providers are supporting people with increasingly complex health needs, and that care requires skilled staff, clinical oversight and the right level of funding to deliver it safely.

‘Nursing homes are an essential part of the health and care system. Every day they support people who would otherwise be in hospital, help people leave hospital safely, and provide ongoing care for those with significant clinical needs in community settings.

‘What matters now is that this recognition is reflected locally.’

Professor Green said that when integrated care boards agree locally determined uplifts to the continuing healthcare fees – which cover free health and social care arrangements given to some people with long-term complex health needs – ‘they must recognise the same cost pressures that this increase acknowledges’.

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‘Without that, providers will continue to face a growing gap between the cost of delivering care and the funding available,’ he added.

To deliver this year’s increase, the government is making an additional £4.6bn in funding available to local authorities for 2028 to 2029 for adult social care by the end of this parliament. This includes £500m for the first ever fair pay agreement for care workers.