Westminster Policy News & Legislative Analysis

England: NHS Funded Nursing Care rates rise from 1 April 2026

The Department of Health and Social Care has made new regulations increasing NHS Funded Nursing Care (FNC) payments from 1 April 2026. Statutory Instrument 2026/207 amends regulation 20 of the 2012 Standing Rules, setting the flat rate at £267.68 per week and the legacy high band at £368.24 per week. The instrument was made on 3 March 2026, laid on 4 March 2026, and extends to England and Wales while applying to NHS England and integrated care boards (ICBs).

FNC is a weekly NHS contribution paid directly to nursing homes for eligible residents who require nursing care by a registered nurse but are not eligible for NHS Continuing Healthcare. The NHS states that a higher legacy rate continues only for individuals who moved into a care home before 1 October 2007 and were previously on the high band. This change does not alter eligibility rules or assessment pathways. (nhs.uk)

Compared with the 2025/26 flat rate of £254.06 and high band of £349.50, the new amounts represent an uplift of roughly 5.4 percent at both bands. For context, government communications confirmed a 7.4 percent increase for 2024/25, and sector reporting recorded a 7.7 percent uplift for 2025/26, taking the flat rate to £254.06. (gov.uk)

Operationally, the amendment adjusts the standing duties on NHS England and ICBs under the National Health Service Commissioning Board and Clinical Commissioning Groups (Responsibilities and Standing Rules) Regulations 2012. These duties sit within the commissioning framework that has applied since clinical commissioning groups were replaced by ICBs in July 2022. Commissioners should ensure provider contracts and payment systems reflect the revised weekly rates from the first April payment cycle. (england.nhs.uk)

For providers, the uplift increases the NHS contribution towards registered nursing input. As a working example, a 60‑resident nursing home with 35 FNC‑eligible residents on the flat rate will see an additional £476.70 per week compared to 2025/26, equivalent to around £24,800 over a full year, subject to occupancy and eligibility changes.

For residents and families, the mechanism of support remains unchanged: FNC is not means‑tested and is paid by the NHS directly to the care home. It should not be confused with NHS Continuing Healthcare, which covers a broader package of care following a separate assessment process. (nhs.uk)

Local authorities typically commission nursing home placements on fee rates that exclude the FNC contribution. The revised NHS amounts should therefore be treated as separate from local authority fee uplifts when 2026/27 contracts are finalised, with clarity in invoices to avoid duplication or netting‑off errors.

The Explanatory Note to the instrument indicates that no full impact assessment has been prepared on the basis that no, or no significant, impact on the private, voluntary or public sector is foreseen. Finance teams should nevertheless model the change across 2026/27 to verify budget headroom in ICB allocations and provider cashflow.

The instrument is signed by Stephen Kinnock MP, Minister of State at the Department of Health and Social Care. His ministerial portfolio includes adult social care, community health and end‑of‑life care, aligning with oversight of FNC policy. (gov.uk)

Policy Wire view: the change is narrow but material for contract administration. The legal basis remains the Standing Rules; the task now is clean implementation-updating contract schedules, notifying providers, and validating that April payment runs use the £267.68 and £368.24 rates for eligible residents from day one.