Care home place costs double the average pensioner's income - A place in a care home now costs up to £30,000 a year, almost twice the average pensioner's income, according to new figures.
A “clear gulf” in funding for services for the elderly has opened up, forcing individuals to sell their homes and raid savings to top up their incomes in order to meet the costs of long-term care, analysts warned.
Research from the leading care agency, Prestige Nursing + Care, suggested that Britain faces a “huge crisis” as people live longer, while councils cut back on state-funded places in residential homes.
An estimated 20,000 people are forced to sell their homes to pay for long-term care every year. A panel of experts, led by the economist, Andrew Dilnot, will recommend reforms to the funding of care and support for elderly and disabled adults in a report to ministers next month.
International projections suggest that the UK will be forced to spend an extra £50 billion a year on services for elderly people as the population ages over the next four decades.
Researchers commissioned by Prestige Nursing + Care found that the cost of a typical care home place already far outstrips the average pensioner’s income.
A single room in a private residential home in Britain now costs an average of £25,953 a year, but a typical single pensioner is on an annual income of just £13,998, the research found. This leaves a shortfall of £11,965 a year.
In London, the most expensive region in the country, average care home costs were £30,784 a year, while in the South-East, annual fees typically reached £29,827.
Jonathan Bruce, Managing Director of Prestige Nursing + Care, said most people did not plan for the expense of paying for care and could find themselves suddenly saddled with huge bills when they or their relatives needed support.
“It is very distressing for families,” he said. “Mum or Dad breaks their hip and goes into hospital, they need rehab when they come out, and often families haven’t really thought about it.
“With 87% of people approaching old age without having made any financial provision for the cost of care, we face a significant crisis.”
Industry experts believe care homes are being forced to increase the charges to private residents who do not qualify for state support because councils have cut the fees they are willing to pay for publicly-funded residents.
Mr Bruce said: “Government funding cuts are having a direct impact on local authority care budgets so those who rely on state care may find that the rug has been pulled from under their feet.”
The cheapest care home places were in Wales, where average fees were £17,680 per year, only £3,744 more than the average single pensioner’s income.
The research involved an analysis of Government statistics, a survey of more than 1,000 adults, interviews with 400 elderly people receiving care at home and their families, and a survey of 55 residential homes.
The findings suggested that most people would prefer to remain in their own homes, with nursing care and support to continue living in their local communities. The second most popular option for long-term care was sheltered accommodation, while just 17% said they would rather move into a residential home.
The analysis follows a warning this week from Europe’s human rights commissioner, Thomas Hammarberg, that Britain’s care system is in “crisis” as privatised care home operators struggle to maintain good quality services in the face of funding cuts. ( telegraph.co.uk )
A “clear gulf” in funding for services for the elderly has opened up, forcing individuals to sell their homes and raid savings to top up their incomes in order to meet the costs of long-term care, analysts warned.
Research from the leading care agency, Prestige Nursing + Care, suggested that Britain faces a “huge crisis” as people live longer, while councils cut back on state-funded places in residential homes.
An estimated 20,000 people are forced to sell their homes to pay for long-term care every year. A panel of experts, led by the economist, Andrew Dilnot, will recommend reforms to the funding of care and support for elderly and disabled adults in a report to ministers next month.
International projections suggest that the UK will be forced to spend an extra £50 billion a year on services for elderly people as the population ages over the next four decades.
Researchers commissioned by Prestige Nursing + Care found that the cost of a typical care home place already far outstrips the average pensioner’s income.
A single room in a private residential home in Britain now costs an average of £25,953 a year, but a typical single pensioner is on an annual income of just £13,998, the research found. This leaves a shortfall of £11,965 a year.
In London, the most expensive region in the country, average care home costs were £30,784 a year, while in the South-East, annual fees typically reached £29,827.
Jonathan Bruce, Managing Director of Prestige Nursing + Care, said most people did not plan for the expense of paying for care and could find themselves suddenly saddled with huge bills when they or their relatives needed support.
“It is very distressing for families,” he said. “Mum or Dad breaks their hip and goes into hospital, they need rehab when they come out, and often families haven’t really thought about it.
“With 87% of people approaching old age without having made any financial provision for the cost of care, we face a significant crisis.”
Industry experts believe care homes are being forced to increase the charges to private residents who do not qualify for state support because councils have cut the fees they are willing to pay for publicly-funded residents.
Mr Bruce said: “Government funding cuts are having a direct impact on local authority care budgets so those who rely on state care may find that the rug has been pulled from under their feet.”
The cheapest care home places were in Wales, where average fees were £17,680 per year, only £3,744 more than the average single pensioner’s income.
The research involved an analysis of Government statistics, a survey of more than 1,000 adults, interviews with 400 elderly people receiving care at home and their families, and a survey of 55 residential homes.
The findings suggested that most people would prefer to remain in their own homes, with nursing care and support to continue living in their local communities. The second most popular option for long-term care was sheltered accommodation, while just 17% said they would rather move into a residential home.
The analysis follows a warning this week from Europe’s human rights commissioner, Thomas Hammarberg, that Britain’s care system is in “crisis” as privatised care home operators struggle to maintain good quality services in the face of funding cuts. ( telegraph.co.uk )
