The biggest difference in private and local authority fees is in the South East

The South East tops the list of regions with the highest differential between the local authority and private fees paid for residential care.

A survey by UK financial services group Just reveals that in the South East private funders pay an average of £55, 276 per year for residential care, while the average local authority payment per resident per year is £36, 920, a differential of 52 per cent.

By contrast, the lowest fee differential is in the North East, at 23 per cent or a difference of £5,252 in the two fees paid.

The average figures for England are: £31,720 paid by local authorities, per year, per resident, and £44, 252 paid by self-funders, a difference of £12, 532 or 43 per cent.

Commenting, Stephen Lowe, group communications director at Just Group, said: “The proportion of care home firms operating this differential pricing has also increased markedly: about 90 per cent of homes now charge self-funders more than they charge councils compared to about 20 per cent back in 2005.”

A report by the Competition and Markets Authority found that the fees paid by councils are below the costs of running care homes leading them to hike prices to self-funders to prop up their finances. This subsidy is highest in homes with a fairly even mix of places between the two groups.

Lowe continued: “A lack of government progress on reforming the later life social care market is putting more financial pressure on those needing care and their families. It’s also a material factor in people waiting before putting any plans in place for themselves.” He says that more than half (51 per cent) of over-45s are delaying making plans until new policy is clarified.   

Facebooktwitterredditpinterestlinkedinmail

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

By continuing to browse or by clicking "Accept All Cookies" you agree to the storing of first and third-party cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
Cookie Policy
Cookie Settings
Decline All
Accept All Cookies
By continuing to browse or by clicking "Accept All Cookies" you agree to the storing of first and third-party cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
Cookie Policy
Cookie Settings
Decline All
Accept All Cookies
Cookie Settings
STAY UPDATED!
Thank you for visiting CHMonline.co.uk, the website for the leading magazine for care home managers, operators and directors. If you would like to receive the digital edition and/or the editor's regular newsletters via email please subscribe here.
Are you a care home staff member or operator?
Terms: Care Home Management (S&A Publishing) may use the information you provide on this form to get in touch with you with relevant industry news and promotions. You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us. We will treat your information with respect. For more information please view our privacy policy.
By submitting this form you agree to the terms.
SUBSCRIBE