The Cost of Care Homes
If you are thinking about care for yourself in old age, or how a relative will be looked after in their old age, one of the main things on your mind is probably how much it will cost for you or them to be looked after if a stay in a care home is required.
Although it’s not possible to give a definitive figure, doing some research to give you an educated idea of prices should help you with your financial planning. Knowing where you stand financially will also give you peace of mind. Our other articles on this site will also give you even more information on the financial side of care.
Average Figures
A survey published by Saga recently estimated that average care home bills are around £540 a week. The average stay of a person in a care home is four years, so over the average stay costs would come in at around £112,000 per person.One major concern about the care industry is that prices are rising faster than the costs of inflation. Saga predicts that within 20 years’ time, care home costs will have risen to over £1,000 a week. This trend in rising costs has come about as inflation has been rising at an average of 2.5% a year, whereas care home fees are rising by 3.5%.
This rise in costs is of concern to the UK as a whole as well as to individuals and their families. At the moment one in six elderly people are in care homes. However, as the population is generally living longer experts predict that in the coming decades this number will be much higher.
The Government has discussed reforming the current funding system of means-testing to avert a potential care funding disaster in the future. A Green Paper on this is expected later this year.
Varying Costs
Although average figures such as those quoted above can be a useful ball park figure, it’s important to take into account that these are not static figures and there are numerous other variables which will affect the cost of residential care later in life.Costs can vary greatly from area to area, for example. As with many costs, prices are likely to be higher in London and the south of England. The type of care which you require will also have an impact on the fees that you will need to pay. For example costs for a nursing home will usually be higher than those for a residential home with a lower level of care, owing to staff and resource needs.
The fees will also vary according to any preferences you have for a care home. If you have any specific facilities or environmental preferences in mind, you will want to make sure you can afford the home you want, if and when the time comes.
It’s a good idea to start researching care home features and facilities and thinking about what you might want and need. You can then research into the prices and fees that you could realistically be looking at. This will help you and your family prepare financially.
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