Rises in Care Home Fees Fail To Cover Accurate Costs

Findings published in a Laing & Buisson report reveal that surges in fees paid to care homes by local authorities are failing to keep up to the same rate as inflation and this has happened for the third consecutive year.

The study found that the amount of money paid to care homes by councils in the last three years has fallen by an estimated 4.8%. Whilst the rise in care home fees is advancement on 2011’s figure of 0.3%, it reportedly falls short of the 2.5% increase that such homes need to cover overall costs.

With the true cost of funding not being met, it is feared that many care homes are struggling to stay afloat financially. Some homes are passing the shortfall in funding onto the private residents themselves by charging higher fees; or alternatively they are cutting costs with staffing and training budgets.

Martin Green, of the English Community Care Association, said that the care system is in crisis because local authorities are refusing to pay the trust costs of care.

Colin Ball, Managing Director of Cheselden Continuing Care, agreed saying: “Local authorities are hiding behind the delays in the Government’s social care white paper and using these as an excuse for not increasing care home fees to adequate levels.

“Sadly, the NHS is taking the same approach to continuing care funding. This is leaving many frail, sick and elderly people without high quality care, or in a position where they’re forced to sell their homes to fund their care privately.”

Further findings in the research show that the weekly fees per head by councils across England vary between £274 to more than £700. And some care home providers at the lower end of the scale have taken councils to court over inadequate funding.

Mr Ball added: “The growing number of appeals and court cases relating to care home fees is a clear indicator that the current care funding system is failing. The government needs to act now to put a fair and feasible funding system in place that properly supports those that need it.

“If these delays continue then, as Laing & Buisson have warned, the ailing care home market may no longer be in a position to form part of the new social care system – and that could be disastrous.”

Cheselden is the market-leading NHS Continuing Healthcare review specialist with an experienced team of professionals that are committed to providing high quality service and expert clinical advice to people and organisations across England.

ENDS

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