What is Funded Nursing Care?
Funded Nursing Care (FNC) is a flat-rate weekly payment made by the NHS directly to nursing homes. It covers the cost of care provided by, or under the supervision of, a registered nurse. If your loved one lives in a nursing home and has not been found eligible for full NHS Continuing Healthcare (CHC), they are almost certainly entitled to FNC.
FNC exists because when someone lives in a nursing home, part of the care they receive is healthcare — specifically, the nursing element. Under UK law, NHS-funded healthcare is free at the point of use. So even though your loved one may be paying for their accommodation and personal care (either privately or via the local authority after a Care Act needs assessment), the NHS must pay for the registered nursing component.
FNC is not means-tested. It does not matter how much money your loved one has, whether they own their home, or whether the local authority is funding their placement. If they are in a nursing home and need registered nursing care, FNC should be paid.
Key point:FNC is not a benefit you “apply for” in the traditional sense. It is an NHS obligation. If your loved one is in a nursing home and FNC is not being paid, the ICB is failing to meet its legal duty. Contact them and ask for a nursing needs assessment.
The current FNC rate (2025/26)
The FNC rate is set nationally by the Department of Health and Social Care and is reviewed annually. For the 2025/26 financial year, the standard FNC rate is:
£219.71
per week (2025/26 standard rate)
This works out to approximately £11,425 per year. The payment is made directly to the nursing home by the local Integrated Care Board (ICB) — you do not receive it as cash. The nursing home should deduct this amount from your fees, reducing the amount you or the local authority pay.
In previous years, there was also a higher “band 2” rate for people with more complex nursing needs, but this was abolished. There is now a single flat rate. If your loved one has nursing needs so complex that the standard FNC rate is insufficient, this may be an indicator that they should be reassessed for full CHC.
Check your invoices:If FNC is being paid, your nursing home invoice should show a deduction of £219.71 per week. If it does not, ask the home whether FNC has been arranged. Some families pay full fees for months without realising FNC should have been applied.
Who is eligible for FNC?
The eligibility criteria for FNC are straightforward. Your loved one qualifies if they meet all three of the following conditions:
They live in a nursing home
The home must be registered with the Care Quality Commission (CQC) to provide nursing care. Residential care homes without registered nurses on staff do not qualify for FNC.
They need care from a registered nurse
A nursing needs assessment must confirm that the person requires care that can only be provided by, or under the supervision of, a registered nurse. This includes wound care, catheter management, medication administration via non-oral routes, and clinical monitoring.
They are not eligible for full CHC
If the person has been assessed and found eligible for full NHS Continuing Healthcare, the NHS pays for everything — FNC does not apply separately. FNC is specifically for people who do not meet the CHC threshold but still need nursing input.
People who fund their own care entirely (self-funders) are equally entitled to FNC. Many self-funders are unaware of this and pay the full nursing home fee without the NHS contribution being applied. If your loved one is self-funding, contact the ICB to ensure FNC is in place.
How FNC differs from full CHC
FNC and CHC are often confused, but they are fundamentally different in scope and financial impact. Here is a clear comparison:
The financial difference is significant. A typical nursing home placement costs £50,000–£70,000 per year. With FNC alone, the NHS contributes around £11,400 — helpful, but the family or local authority still pays the vast majority. With full CHC, the NHS covers everything. This is why it is always worth exploring whether your loved one might qualify for full CHC, even if they are already receiving FNC.
The FNC assessment process
The FNC assessment is simpler than the full CHC process. It involves a nursing needs assessment carried out by a registered nurse, usually arranged by the ICB. The purpose is to confirm that the person requires care from a registered nurse.
In practice, FNC is often arranged as part of the CHC process. If someone is screened for CHC using the Checklist and does not meet the threshold for a full assessment, or if they undergo a full DST assessment and are found not eligible for CHC, the ICB should then arrange FNC if the person is in a nursing home. This should happen automatically, but it does not always.
CHC screening or assessment
Most people encounter FNC after being assessed for CHC and found not eligible. The ICB should then consider whether FNC applies.
Nursing needs assessment
A registered nurse assesses whether the person requires care from or under the supervision of a registered nurse. This is usually a straightforward process for anyone in a nursing home.
ICB arranges payment
Once confirmed, the ICB arranges to pay the FNC rate directly to the nursing home. This should be backdated to the date the person became eligible.
Nursing home adjusts fees
The nursing home should reduce your invoice by the FNC amount. Check your invoices to confirm this is happening.
What FNC covers vs what you still pay
FNC covers only the registered nursing care element of a nursing home placement. This is a narrow definition. Understanding what falls inside and outside FNC helps you see exactly where your money goes.
Covered by FNC
Not covered by FNC (you still pay)
How to claim FNC
FNC should be arranged automatically by the ICB after a CHC assessment finds the person not eligible for full CHC. However, if FNC has not been set up — which happens more often than it should — you can take the following steps:
Can you get FNC and still apply for CHC?
Absolutely. Receiving FNC does not affect your right to apply for full CHC at any time. In fact, if your loved one is receiving FNC, it may be worth reviewing whether their needs have changed and whether they might now meet the threshold for full CHC.
Care needs often increase over time — especially with progressive conditions like dementia, Parkinson's disease, or motor neurone disease. A person who was assessed as not eligible for CHC two years ago may well qualify now if their needs have deteriorated. You can request a new CHC Checklist screening at any time, and the ICB cannot refuse.
Important:If your loved one is found eligible for full CHC, the NHS takes over all care costs. FNC is effectively absorbed into the CHC package. The financial difference is enormous — full CHC can save families £50,000 or more per year compared to FNC alone. Always consider whether a CHC application is worth pursuing.
For detailed guidance on the full CHC process, read our CHC assessment guide and our guide to CHC eligibility criteria.
FNC in nursing homes vs residential homes
FNC only applies to nursing homes — that is, care homes registered with the CQC to provide nursing care, with registered nurses on staff. If your loved one is in a residential care home (which provides personal care but not nursing care), FNC does not apply.
This distinction matters. If someone in a residential home develops needs that require registered nursing care — for example, complex wound management or PEG feeding — they may need to move to a nursing home. At that point, FNC should be arranged. Alternatively, if their needs are that complex, they may qualify for full CHC, which would cover the cost of care in either setting.
Some people in residential homes receive “district nursing” visits from NHS community nurses. This is separate from FNC and is provided free as part of standard NHS community services. It does not replace the need for a nursing home placement if ongoing nursing oversight is required.
Frequently asked questions about Funded Nursing Care
What is Funded Nursing Care (FNC)?
Funded Nursing Care is a flat-rate weekly payment made by the NHS to nursing homes to cover the cost of care provided by registered nurses. It applies to residents in nursing homes who have been assessed as not eligible for full NHS Continuing Healthcare. The current FNC rate is £219.71 per week (2025/26). FNC is not means-tested — it is available to everyone in a nursing home who needs registered nursing care.
How does FNC differ from full CHC funding?
CHC covers all care and accommodation costs — the NHS pays everything. FNC is a much smaller contribution that only covers the nursing element of care. With FNC, you or the local authority still pay for the rest of the care home fees, including accommodation, personal care, and other support. CHC requires a finding of a 'primary health need' through a full DST assessment, whereas FNC is the default for anyone in a nursing home who needs registered nursing input but does not meet the CHC threshold.
Who is eligible for Funded Nursing Care?
Anyone living in a nursing home (as opposed to a residential care home) in England who has been assessed as needing care from a registered nurse is eligible for FNC — provided they have not been found eligible for full CHC. If you are in a residential home without registered nursing staff, FNC does not apply. FNC is not means-tested and does not depend on your financial situation.
Do I need to apply for FNC separately?
In most cases, no. If your loved one has been assessed for CHC and found not eligible, the ICB should automatically arrange for FNC to be paid to the nursing home. However, this does not always happen smoothly. If FNC is not being paid, contact the ICB and ask them to arrange a nursing needs assessment. The nursing home should also be aware of FNC and can help chase this.
Can I receive FNC and still apply for full CHC?
Yes. Receiving FNC does not prevent you from applying for or being reassessed for full CHC at any time. If your loved one's needs increase, you can request a new CHC Checklist screening. If they are later found eligible for CHC, the NHS will take over all care costs and FNC will no longer apply separately — it is effectively absorbed into the full CHC package.
Is FNC available in Wales, Scotland, and Northern Ireland?
The FNC system described here applies to England. Wales has a similar arrangement called NHS-funded Nursing Care, administered by Local Health Boards. Scotland provides free personal care and free nursing care under separate legislation. Northern Ireland has its own arrangements. The rates and processes differ in each nation, so check with the relevant health body.
What does the FNC payment actually cover?
FNC covers the cost of care provided by, or under the supervision of, a registered nurse. This includes things like wound care, medication management, catheter care, and other clinical nursing tasks. It does not cover personal care (washing, dressing, feeding), accommodation, or social activities. The payment is made directly to the nursing home — you do not receive it as cash.
Related guides
NHS Continuing Healthcare Funding Guide
The complete guide to CHC — who qualifies, the assessment process, and what to do if refused.
Care Home Fees Explained
Who pays for care home fees, how means-testing works, and what financial support is available.
CHC Eligibility Criteria
What counts as a 'primary health need' and how the NHS decides who qualifies for full CHC funding.
CHC Assessment Guide
How to prepare for the DST meeting, understand all 12 domains, and present your case effectively.