Self-funding residents in care homes being penalized

04/01/2008

Older people forced to sell their homes to pay for care are being penalised by rising care costs and having to use the proceeds from their former homes to prop-up a failing care system.

That is the main conclusion of a new report from the NHFA, which provides advice on paying for long term care. Their analysis of data over the last five years shows that:

• Whilst inflation has increased by just 17% nursing home fees have increased by a staggering 60% over the same period.

• The average shortfall in income required to meet nursing home fees is now £17,540 per annum, an increase of 83%.

• The capital required on deposit to fund this shortfall is £555,063 an increase of 92%.


These findings are further supported by The Commission for Social Care and Inspection (CSCI) in its report ‘A Fair Contract With Older People’, which found that:

• Of councils surveyed, four out of 10 councils provided less support to older people funding their own care.

•  Twenty-two out of 38 (58%) of care homes charged self–funding people more for their care than those funded by the council.

•  People who are expected to pay for their own care are particularly disadvantaged by a lack of information, support and advice at every stage in making a decision about going into a care home.

Even professionals, says the NHFA, acknowledge that they found the funding system confusing, particularly given different contributions from the council, the NHS and third parties.

Philip Spiers, Managing Director of NHFA Care Fees Advice, says: “We totally agree with CSCI’s findings and the evidence from our analysis of recent data and calls taken on our advice line supports the fact that older people funding their own care are getting a raw deal.

“Not only are they paying more to cross-subsidise the State they are not getting the advice and support they need when at their most vulnerable. Very few people seek specialist advice when paying for their care and are not only missing out on State funding and support but also the specialist financial products that can be utilised to ease the financial burden forced upon them making the whole situation that much more tolerable.”