Funded Nursing Care and Fee-Mix Margin Calculator
The funded nursing care (FNC) contribution of £268 per week (2026-27 England) is paid by the NHS directly to eligible nursing home residents' accounts, on top of the home's base nursing fee. Enter your bed mix and fee rates to see total weekly revenue and margin.
Funded Nursing Care and Fee-Mix Margin Calculator
The funded nursing care (FNC) contribution of £268 per week (2026-27 England) is paid by the NHS directly to eligible nursing home residents' accounts, on top of the home's base nursing fee. Enter your bed mix and fee rates to see total weekly revenue and margin.
Residents paying the full fee themselves (or via family). Typically the highest fee rate.
Average weekly fee charged to self-funding residents.
Residents funded by the local authority. LA rates are often below the self-funder rate.
The rate the local authority pays per week. This varies significantly by council.
Residents assessed as eligible for Funded Nursing Care. The NHS pays £268/week (2026-27) on top of the resident's base fee.
The fee your home charges for an FNC bed (excluding the £268/week NHS contribution, which is added automatically).
All weekly costs: staffing (wages, NIC, pension, agency), food, utilities, property, management. Use the Staffing Cost calculator for the staffing element.
FNC rate used: £268/week (2026-27 England rate). IMPORTANT: verify the current rate at NHS England before using for financial planning. The NHS pays this directly to nursing homes for eligible residents assessed under the FNC process.
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Funded nursing care and fee-mix strategy for nursing homes
Funded Nursing Care (FNC) is a weekly NHS contribution paid to nursing homes for residents who have been assessed as requiring registered nursing care but who do not qualify for full NHS Continuing Healthcare (CHC) funding. The rate for England is set annually by NHS England; the 2026-27 rate (from 1 April 2026) is £268 per week per eligible resident.
The FNC payment is made by the NHS on top of whatever the resident or local authority pays as the base nursing fee. It is not means-tested. Any resident in a nursing home who has been assessed and found to have a primary nursing need can receive FNC. The home receives the FNC payment directly from the NHS.
Fee mix matters enormously to nursing home profitability. Self-funding residents typically pay £1,200-£1,600 per week in many parts of England. Local authority rates, by contrast, are often £800-£1,100 per week and frequently below the cost of care. FNC adds a guaranteed NHS contribution on top of the base fee for nursing beds, which makes FNC-eligible beds more valuable than LA-funded residential beds at comparable fee rates.
A home with 30 beds, 10 of which are FNC-eligible at £267.68/week, receives an additional £2,676.80 per week (£139,194 per year) from NHS England compared to the same beds being LA-funded residential. This revenue is unconditional on the resident's means and is index-linked annually.
The CHC/FNC assessment process can be complex. Families and care homes often under-claim because residents are not assessed or re-assessed when their needs change. An active approach to ensuring eligible residents are properly assessed for FNC (and CHC where appropriate) directly improves revenue without any fee negotiation.
Frequently asked questions
What is the FNC rate for England in 2026-27?
£268 per week per eligible resident. This is paid by NHS England directly to the nursing home. The rate is reviewed annually. Verify the current rate at NHS England before using for financial planning.
Who is eligible for Funded Nursing Care?
Residents in a nursing home who have been assessed as having a primary nursing need but who do not qualify for full NHS Continuing Healthcare (CHC) funding. The assessment uses the NHS Decision Support Tool. Eligible residents receive the FNC contribution from the NHS regardless of their financial means.
Is FNC the same as NHS Continuing Healthcare?
No. NHS Continuing Healthcare (CHC) is full NHS funding for people with a primary health need, covering all care costs. Funded Nursing Care is a partial NHS contribution specifically for the registered nursing element of care in a nursing home. CHC-funded residents do not also receive FNC.
Can a care home resident receive FNC if they are self-funding?
Yes. FNC is not means-tested. A self-funding resident assessed as eligible receives the FNC contribution from the NHS, which reduces the net fee they pay. The home receives the full FNC rate on top of whatever the resident pays for non-nursing care.
Why do LA-funded fees tend to be lower than self-funder fees?
Local authorities have statutory duties to fund care for eligible residents but set their own fee rates through annual negotiations. LA rates in many areas do not meet the true cost of care. Care homes that accept LA-funded residents often cross-subsidise from self-funder fees to remain financially viable. The Care Act 2014 requires local authorities to pay a rate that reflects the true cost, but enforcement is limited.
Want to be sure of your position?
Tell us about your care business and we will confirm your exact figures and the compliance steps that apply to you. No obligation.