Why is the cost of care so high?

[Truetoself]

I think the average household income in UK is around £33K? I believe the cost of a care home is upwards of £5K a month and that of a live in carer us around £10k. I am trying ro work out how this makes sense because it is not proportionate to the income of an average household in the country.

I wonder what the cost of care would be in an alternative universe where we didn't have a housing bubble and there weren't vast sums of money locked up in property owned by elderly people?

Not sure what average income has to do with care home fees. If someone has a house that needs to be sold to fund the care (otherwise tax payers would pay).

I keep hearing that not many people end up in a care home and I am sure that is correct but both my parents ended up in one. One for nearly 4 years! He had to sell his house to fund the care (and he was also paying considerably more than someone who was funded by the local authority as they dont pay the going rate)

My elderly Father sold his home to fund his care. It wasnt locked away

I don’t think it’s fair that self funders pay more and subsidise council funded residents. There should be a set amount the council pays and then you can top up if you want to, for everyone.

As usual in this country those that worked hard and looked after themselves have to continue to pay for those that didn’t. There’s also the fact that if you’ve got nothing then it’s an easy choice for someone else to pay for the care. Those that maybe want to protect even a small amount of saved money from the greedy care home owners getting the money are forced to try and struggle on doing their own care.

This is often forgotten when people talk about local authority places. The care homes dont necessarily get that much less.

My mum is in a prvate carehome and a look at their accounts on Companies House website shoes profits are not massive. Essential around £50000 which is a midlevel salary for the owner.

The family doesn't have to afford it it is the assets of the person going into the home. If they have savings and own a house they have to pay until their money runs out then the council will pay they might have to move to a cheaper home though. Never sign anything on behalf of the person going into the home that states you will be responsible for any fees.

Absolutely right. I wonder what will happen a few generations down the line when not so many people are house-owners able to fund their own care. Surely something will have to change in the future?

I have seen something about a lot of the better care homes have sprung up to cater for those with lots of funds due to house price increases and the ma only be in business for a couple of generations

There will be a dignitas on every high street I imagine! 😂

This. Self funders subsidise Council funded residents. It is a hugely unfair system, especially given that when the money runs out, there is no guarantee that the same Council you subsidised, will actually keep you in the same home and may well shift you to a cheaper home. Of course if you hadn't been subsidising other residents, you may very well have had enough funds to stay there for a good while longer.

For some reason, there seems very little appetite at Government level to deal with the care sector. It is a shit show. I feel for those who work within it. There are some good homes, but they are few and far between. It needs to be looked at in conjunction with the NHS as it is a major cause for bed blocking.

Also, many families struggle on as it is so difficult to access appropriate care for their loved ones. My FB carer group feed is full of despairing families who are on their knees trying to keep their loved ones safe and looked after.

Care homes are catering for people who own houses worth millions. So, considering that, on average, a resident doesn't live more than a year in a care home its a good bet for someone who wants to unlock the inheritance before dear demented mummy is dead: put her into care home, spend some crazy money without feeling guilty and still gain a few million from the house sale.

I thought 5k a month was bad!

Don't forget though that having the money buys you choice. If you don't have savings or a house to sell then your care is at the whim of the council and it's very very difficult to get a place in a care home. As it's thought to be acceptable for an elderly person to live alone with four short carer visits a day, in the same room as their commode.

Having money buys you choice about where to go and when you go. My elderly chose to go into residential care for peace of mind, chose a lovely home and really flourished there. If she'd been limited to council funding she'd have been on her own at home, lonely and frightened for much of the day apart from a few visits from carers.

That is a really nasty post. Many, many people look after their elderly parents/spouse for as long as they can physically and mentally cope. It is a really hard decision to make to put a parent/spouse into a care home. Once you do that you are not allowed to spend any of their money. It all goes to the care home, even after their death, until all the charges are paid in full.
What many people don't appreciate is that even when your relative is in a home you have to go every day to make sure they are being fed, watered and given their medication. You have to take them to hospital appointments because there aren't enough staff to escort them. You constantly have to find the missing clothes, glasses, dentures, hearing aids and replace every time they are lost.
The elderly spouse still living in the home (not worth millions in most cases) still has to pay for gas and electric, home insurance, contents insurance, telephone, wifi, and probably for help with cleaning etc. The only tiny concession is a small reduction on council tax. They are not allowed to spend any of their spouse's money on these things and it can be very hard. They are responsible for paying the care home fees each month and have to keep records of everything because SS will go through everything. It is extremely stressful.

I read an interesting article some time ago about the way care homes are structured. Quite often the building is owned by a different company which charges a whacking great rent. This protects the building from being an asset if the care business was to go under but also disguises profits. So care home books are showing a small or no profit but the company who owns the building is generating a solid 15% return on investment annually.

Not saying it’s true of your mum’s or all care homes but it opened my eyes at how a quick look at accounts may not reveal the whole story.

In a way you get what you pay for. I was talking to a friend from Bulgaria and there is an expectation that it’ll be done within the family. It’s not care as we’d describe it though more a shunting into a bedroom and being fed / nappies being changed a few times a day and expectation they will die shortly. They generally do with life expectancy being one of the lowest in Europe.

Many struggle to break even loads have shut down there money outs with enormous overheads

it work out at between £6/7 an hour to care,house and feed someone

Sorry if it came across nasty. I have worked with later living providers and became quite cynical - it is a business, and a very profitable one.

I am well aware how difficult it is to look after the elderly relative, especially with dementia, the dedication and the heartbreak. Which makes the whole care home charade even more distasteful.

It gets really expensive with dementia, it could be 5 years at £100,000 per year, all savings and inheritance gone.

Imagine you’re staying in a hotel, full board, with nursing care provided on top. With the ratio of staff high enough to help keep everyone safe, and the heating up high in winter because when older people cannot move around much, they feel the cold.

Even if it was provided on a not for profit basis, it would be expensive.

One of the few care in the home companies that is UK owned is Caremark. Bluebird care and home instead are American owned investments. A bit off topic but when choosing care one thing we can do it back the British businesses, that goes for care homes as well.

Volunteer in a care home and then you'll work out why!

People don't afford it out of income. They afford it out of asset sales (and income) or the council pays.

That's the economic reality of care homes.

Then live in care, if 24/7, will be eye watering because of the number of staff you need for one person - Staffing is high.in care homes but at least they are looking after more than one at once.

I manage a 24/7 team. The calculation we use for one person to cover one duty 24/7 is 5.6 people. To cover leave and training and sickness and maternity and all that stuff.
So 5.6 people's salary for ONE member of staff. At £25k that’s £140k they have to find.

So much for the idea that elderly relatives are lovingly cared for by their family at home in an extended family set up!

On a practical level if you have a job and are a carer for an elderly relative with no real government support then what are your options. You try your best to keep everyone clean and fed and a roof over your heads.