Nurse in care home

Government announces funding increase for NHS funded nursing care

Care homes that provide tailored nursing care for vulnerable patients in the community will receive a funding uplift of more than 5% from April 2026, as part of the government’s wider plans to build a national care service and relieve pressure on hospitals.

The increased funding for NHS‑funded nursing care (FNC) aims to support individuals with complex needs, prevent avoidable hospital admissions, and enable faster, safer discharges — helping free up much‑needed bed capacity across the NHS.

From 1 April 2026, the standard weekly FNC rate will increase:

  • From £254.06 → £267.68 (standard rate)
  • From £349.50 → £368.24 (higher rate)

This uplift will be paid directly by the NHS to care homes providing nursing care, ensuring providers can deliver high‑quality, specialist support for people whose health needs can be met safely in a social care setting.

The funding increase is backed by allocations made at the most recent Spending Review (2026–27).

The uplift comes as part of a broader government commitment to deliver a national care service based on high‑quality care, choice, cntrol

  • Fair pay for workers

To support this, ministers will make an additional £4.6 billion available to local authorities for adult social care by 2028–29, compared to 2025–26. This includes £500 million to fund the first ever Fair Pay Agreement for care workers, addressing longstanding workforce challenges.

Alongside the nursing care uplift, the government has also committed:

  • £723 million for the Disabled Facilities Grant (2026–27) to help people adapt their homes and live independently
  • The largest increase to the Carer’s Allowance earnings threshold since the 1970s
  • The biggest rise in the Minimum Income Guarantee in a decade for disabled adults, helping with cost‑of‑living pressures

These measures aim to strengthen financial support for unpaid carers and vulnerable adults, ensuring people can live safely and independently in their communities.

Baroness Louise Casey is chairing the independent commission into adult social care, a key step in shaping the national care service. Her first recommendations are due later this year, providing a roadmap for long‑term system reform.

The Commission will focus on:

  • Workforce
  • Funding
  • Quality
  • Long‑term sustainability
  • Integration with the NHS

NHS‑funded nursing care plays a crucial role in:

  • Supporting people with complex health needs outside hospital
  • Reducing delayed discharges
  • Preventing avoidable admissions
  • Enabling smoother transitions between health and social care
  • Ensuring faster access to specialist nursing in the community

The uplift will help care homes maintain staffing levels, invest in training and deliver tailored care that meets clinical needs while reducing system‑wide pressure.

For public sector leaders, the announcement signals continued movement towards a more integrated, fair and sustainable care system.

 

Image credit: iStock

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