Private vs Not-for-Profit Care Homes: What's the Difference?

When searching for the right care home for yourself or a loved one, you may find yourself weighing up various options, including private and not-for-profit residences. Understanding the key differences between these types of care homes can help you make a more informed decision that aligns with your needs, preferences and expectations.

t KYN,  we believe that informed choices lead to greater peace of mind. Below, we explore the ownership structures, funding models, quality standards and what to consider when choosing between private and not-for-profit care homes in the UK.

What Are Private Care Homes?

Private care homes, such as KYN, are established and run by independent companies and are not dependent upon receiving funding from the government or NHS. These residences operate as commercial businesses, with the primary aim of providing excellent care services whilst also generating profit for their owners or shareholders.

The vast majority of residential and nursing homes in the UK are privately owned. This includes both small, independent organisations running a single home as well as larger operators managing multiple residences across the country. Private care homes fund their operations through the fees paid by residents or their families, though they also accept residents whose care is partially or fully funded by their local authority.

Many private care homes, particularly those in the luxury sector, invest significantly in their facilities, staff training, and amenities to create beautiful, nurturing environments. This investment often reflects in the quality of accommodation, dining experiences, therapeutic activities, and overall atmosphere of the home.

What Are Not-for-Profit Care Homes?

Voluntary sector homes are not-for-profit and are run by registered charities, religious organisations, and housing associations. Not-for-profit charities and voluntary organisations own approximately 13% of UK care homes.

Rather than distributing profits to shareholders or owners, these residences reinvest any surplus funds back into improving services, facilities, and care provision for their residents.

Not-for-profit care homes may be affiliated with specific religious denominations, charitable foundations, or community organisations. Their mission typically centres on providing compassionate care as a service to the community, rather than as a purely commercial venture.

How Do Funding and Costs Compare?

One common misconception is that not-for-profit care homes are automatically more affordable than private residences. In reality, all residential and nursing homes, whether private or publicly owned, charge residents a fee based on their individually assessed care and accommodation needs.

There is no set fee for care homes in the UK, so costs can vary, depending on factors such as the number of employees and the range and quality of facilities offered. In some cases, private care homes can be more expensive than council-run or NHS care homes.

However, this often reflects the level of investment in facilities, staff-to-resident ratios, dining experiences, and enrichment programmes. Anyone with limited savings can apply to their local council for help with care home fees, and this applies whether you choose a private care home or one run by a local authority.

Are There Differences in Quality Standards?

When it comes to quality and regulatory oversight, private and not-for-profit care homes are held to exactly the same standards. All care homes in the UK are assessed by an independent regulator of health and social care, so regardless of whether they are private or council-owned, they are all subject to the same rules and guidelines.

Both private and council care homes are inspected regularly and awarded a rating, and any care home that receives an 'inadequate' or 'requires improvement' rating will have regulatory action taken against them. In fact, the overall distribution of ratings for private and council-owned care homes is similar.

This means you can be reassured that whether you choose a private or not-for-profit residence, the home will be monitored to ensure it meets essential quality benchmarks. What truly matters is the individual home's inspection rating, the quality of its staff, and whether it feels like the right fit for you or your loved one.

What Should You Consider When Choosing?

When deciding between a private and not-for-profit care home, the ownership structure should be just one factor in your decision. More important considerations include:

• The home's inspection rating
• The warmth and competence of the staff
• The quality of facilities
• The range of activities on offer
• Whether the environment feels comfortable and welcoming

All types of home can choose who they offer accommodation to, and they must ensure their services are suitable for your particular needs. Take time to visit multiple homes, speak with current residents and their families, and ask detailed questions about care plans, staffing levels, and daily life in the residence.

Consider what matters most to you. Is it the ethos and values of the organisation? The quality of the physical environment? The breadth of therapeutic activities and entertainment? The expertise of staff in specialist areas such as dementia care? These practical elements often matter far more than whether the home operates on a for-profit or not-for-profit basis.

Experience Exceptional Care at KYN

At KYN, we believe that exceptional care is about far more than ownership structures – it's about the people, the environment, and the unwavering commitment to honouring each resident's individuality. Our homes in London  provide the highest standards of residential, nursing, dementia and respite care in beautifully appointed settings.

We take a truly personalised approach to care, getting to know each resident's unique history, preferences and aspirations. Through our enrichment programmes, award-winning dining experiences, and expertly trained care teams, we create an environment where residents can continue to live well and find joy in every day.

If you would like to learn more about life at KYN, we invite you to enquire today. Request a brochure, arrange a visit to one of our homes, or simply speak with our team. For our mothers, for our fathers, for our KYN.