PEOPLE who pay for their own nursing home care may be subsidising state-funded places, new figures show.
Average weekly rates for self-payers have now reached an eye-watering £1,000, according to a report by analyst LaingBuisson. In fact, ten per cent of the existing capacity costs £1,200 or more a week.
LaingBuisson called for the Competition and Markets Authority to examine whether the higher fees paid by self-payers are a cross subsidy.
Lower fees offered by councils mean that care homes have to raise prices for self-payers. The Conservative Party’s introduction of the National Living Wage, now set at £7.50 an hour for workers aged 25 or over, has put further upward pressure on prices charged. Sadly, a number of businesses have been forced to shut because they can’t cover their costs. And this means we are facing a national shortage of places.
Be aware that you will probably have to pay for residential care yourself if you have assets of more than £23,250. But also be aware that you won’t get away with deliberate deprivation of assets, such as suddenly giving all your money away.
For further advice about planning for care home fees, contact Heritage Will Writing on 02380 879243.