Steep care home fee increases

[SwisswolvesLilley]

My Dad has been in a care home with vascular dementia since December 2023. The care home increased fees by 10% in April 2024 and intend to do so again April 2025. I understand there have been Government changes which justify some increases, but 10% for two years on the trot seems grossly excessive to me. Can anyone give me some context on increases they have paid over the last couple of years please?

Aunts fees have just gone up by £1000 a month! We sold her home just before covid so she has money in the bank to pay for the next 4 years then God knows what will happen, especially if costs goes up again! She has dementia but is otherwise stable and well so could outlive her finances.

Inflation, increase in minimum wage and increase in employer NI contributions all add up. We have seen similar increases.

We are also paying twice what the LA pay for LA funded residents in the same care home.

I work in a care home doing the finance side. We've had massive increases in costs over the past few years and I'm not surprised your fees are going up by 10%.
Biggest costs for us are staffing around 70% of our budget. Minimum wage increase by 9.8% last April this year's it's less 6.7% but we have the increase in our employer NI contributions.
Our insurance costs have increased 4 times since covid. Food costs have increase by a third (you will know this by your own shopping bill) also gas and electric have increased massively and we are not entitled to the price cap protection.
Last year the council increased the fee they pay us by 16% (this will vary depending on your local authority) but the increase is lower this year so self funders and top ups need to make up the difference.
I totally understand that care is so expensive but the reality of running a care home.is very expensive too.

Fwiw, when mil was in a care home, her fees went up 10% every year she was there. 2015-2020. It was written into the contract that would be the minimum increase each year.

Care homes are really expensive to run. I worked in one one fuel bills are really high as heat blasting all the time with windows open for air! Staffing bill is huge, NI increases etc Its not surprising it’s gone up by 10% atall.

Last year the council increased the fee they pay us by 16% (this will vary depending on your local authority) but the increase is lower this year so self funders and top ups need to make up the difference. Please note this anyone who doesn’t know. If LA funds don’t cover costs, self payers have to make up the funding for the LA supported residents.

Up to 40% of what a self-funder is paying can be going to support LA funded residents.

This is helpful to understand as expecting to hear soon on the increase this year. Frankly when I break it down to an hourly rate for the 24 hour care DF needs, it still seems fair value.

I had heard of this before but wasn't sure if it was true! It seems grossly unjust that self payers should have to make up the shortfall for council paid residents. Shocking really...

It really is! Self funders have usually paid taxes throughout their lives and will have their homes sold to pay for their care. I have no problem with those who have the assets paying for themselves, but the current funding model effectively steals from the vulnerable.

It is shocking it’s also why some homes refuse to have LA residents. My great uncle went in a home and had to prove he could self fund for a minimum of three years and then if he ran out of cash he’d be allowed to stay on as LA resident but would have to move to a cheaper room ( he’d gone for most expensive room with fantastic sea view.) It was a lovely place and they did a daily cocktail hour which seemed to keep everyone chipper.

I think what I’ve learned from that experience is that if self funding go somewhere that has low / zero LA beds so care costs are more equally shared.

I think what I’ve learned from that experience is that if self funding go somewhere that has low / zero LA beds so care costs are more equally shared. The downside of that is that when funds run out, they may have to move to a different home. The average for a nursing home may be a year, but my dad’s been in one 6 years and counting

As soon as your aunts money goes below £23,250 then the LA will assist with costs. It's advisable to contact the LA when there is around 6 months of self funding left.

There is no guarantee that your aunt will be allowed to stay in the same care home. But the LA can be persuaded if it can be shown that moving to a different home will be detrimental to her health.