Care cap and time to abolish residential care as we know it

I’ve been thinking about how the Government’s proposals (£72k care cap on costs) will affect the market.

What’s not being talked about is the way private funders currently living in residential care cross-subsidise those funded by Local Authorities (LAs).

LAs negotiate the price they’re prepared to pay care homes which may or may not meet the real costs of delivery. Within those care homes, private funders living across the corridor from their socially-funded neighbours can be paying up to twice the price.

Under the new model, hotel (food and accommodation) costs will be capped at about £240/week according to The Guardian. Based on an average £500/week, that leaves £260/week for individuals to find from their own pockets for care until they spend £72,000.

Yet how many existing institutions clearly identify the difference between care and hotel costs in their weekly fees, so consumers can see what they’re going to have to pay for?   If a private rate is £800/week or more, how do we know what proportion is care v hotel and how much costs are being inflated to cover the funding gap?

So this whole proposition requires a great deal more debate and explanation. If the Government is only going to pay the equivalent of LA negotiated rates, a couple of things are likely to happen:

1. The vast majority of private funders will die (based on current life expectancy in care homes) before they are eligible to receive any subsidy.
2. Current institutions face lowering the quality of their service to keep homes full or face bankruptcy.

So we need a realistic alternative for the majority who won’t be eligible for financial support.

Let’s build property that’s worth investing in for later years. That’s what we’re doing at Evermore and why our homeowners will retain control over equity and their ongoing finances. And above all, not have to face the decision made often in a crisis to move into a care home.

Time to abolish residential care as we know it

Sara McKee, Founder of Evermore

@SaraMcKeeFRSA