Care Home Costs Have Risen 10 Times More Than Pensioner Incomes
New research has just been released by Prestige Nursing and Care who undertook a five year study around the issue of rising care home costs. Their research showed that care home costs have increased by £1536 over the last year.
The average costs are now currently around £30,926 per year which showed an annual growth rate of 5.2%, although in London the average costs can rise to around £38,896 per year being a growth rate of 19 %.
With pensioners having very little return from their capital on savings due to low interest rates and because small increases in their state pension, on average their incomes grew by just over 1.1%.
Karon Walton, Head of Tollers Elderly and Vulnerable unit and a member of the Care Adviser Network said “this situation is very worrying that care home costs have risen almost 10 times more than pensioner incomes and this could be a real problem for people once their capital has been used up in a very short space of time and they then have to apply for social care funding.”
A new funding regime for social care funding was due to come into effect in April 2017 under The Care Act, but was delayed by the government until 2020 due to worries around Local Authorities sustainability to cover the changes.
As people are continuing to live longer, but still require some level of care in later life it very worrying how social care will be funded in the future. Karon’s advice is to plan early for your future, look fully at your options and to take proper advice from financial and legal experts in this area.
If you have concerns about funding care Karon Walton and the Tollers Elderly and Vulnerable Client Unit can advise you fully on what action you can take. Talk to Tollers on 01604 258787.