Average Care Home Fees

It can be said that there are three things that are the main drivers of care costs – location, location, location!

The following table (Source: Laing & Buisson, Care of Elderly People Report 2016/17) reflects what you can expect to pay for your care home fees throughout the UK, reflecting the wide regional variation across the country:

Region/Cost per week Care Home With nursing care
East Midlands £578 £725
East of England £673 £986
London £741 £949
North East £563 £666
North West £511 £776
Northern Ireland £516 £670
Scotland £639 £852
South East £702 £1,041
South West £655 £927
Wales £566 £769
West Midlands £573 £837
Yorkshire & Humberside £546 £755

These are average care home costs, so there are some lower than this and some much higher. There are a number charging £2,000 per week and many of my Clients seem to be in the £750 – £850 per week range.

Generally, it is a “pay your money and take your choice” situation. The more expensive the care home the better the facilities, both in terms of the Patient’s own room, communal facilities and staff to patient ratios. The more expensive homes offer a facility similar to a 4/5-star hotel with outstanding individual rooms, recreational facilities, a choice of dining and often a bar. The homes catering for Local Authority funded patients are often very basic, because of the limited funding available.

As will be seen, the difference between the average with and without nursing care is generally much more than the £155.05 (2017/18) per week currently being paid by the NHS for those eligible for NHS Funded Care!

One of the things that you need to watch out for is the fact that care fees have tended to rise faster than inflation in the past. According to Saga, since 2006, nursing home costs have roughly increased by 5% a year, for example. Long term, Saga expects that care home fees will rise at a rate somewhere between inflation and average wage rises. So you will have to be prepared for the cost of your nursing care fees to rise considerably over the years.

For the self-funder, one of the options is to move closer to relatives living in a lower cost part of the country. However, such a move is harder for the Local Authority-funded resident. The Government recognises that this is inequitable and the recent Care Act 2014 will make this easier for all care home residents.

Another option is to consider Domiciliary Care – staying in your own home and having carers come in to help throughout the day (and night). Such care is still means-tested in the same way as residential care, but, of course, the value of the property cannot be taken into account, which it is with residential care after the 12-week disregard. Although the ill-conceived Tory manifesto for the 2017 election contained proposals to include the value of the home in the means-test for domiciliary care patients, so even this is under attack.

If you have an issue with funding care, please call me today or complete the form below.

    - Care Fees Planning

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    About Clive Barwell

    Clive Barwell is one of the most experienced and qualified financial planners working in the later life market today, he specialises in advice and guidance for the over 55s. To ask Clive a question, please email him at info@clivebarwell.co.uk. Alternatively, you can follow Clive on Twitter, connect with Clive on LinkedIn or see Clive's profile on Google+.