Care fees increase of 14% may force thousands of elderly homeowners to sell their homes.

Thousands of pensioners may need to sell their family homes in order to afford Care fees increases of 14% in residential care fees.

Reports from earlier this year discovered that average care home fees soared by as much as 14% over the 12 month period, thus forcing these families to find hundreds of pounds more every month to meet a possible shortfall.

It was reported that fees are ever increasing because Councils, which fund poorer residents, are cutting the amount they are prepared to pay for them to say in care. This report suggested that private care home operators are making up the difference by increasing prices for everyone else.

In London, where the rises have been the highest, annual average charges are now £35,300, up £4,400 over that 12 month period.

For those who are elderly and who need to go into a nursing home that offers more care and attention, the costs are even greater for them. In the counties to the north of London, the average charges are as much as £45,100 a year.

Across the UK the average residential care home fee is £27,300 – up 5% based on the 12 month period – whilst the nursing home charges increased by 4% to as much as £37,500.00.

The research report by Age UK, revealed a postcode lottery, with pensioners paying far more for residential care in some areas than in other areas.

Whilst average fees were highest in Greater London at £679 a week, in East Anglia they have soared by 12% to £554 a week (£28,800 a year) and in the North East and Cumbria by 11 per cent to £487 a week (£25,300 a year).

It is reported that more than 20,000 pensioners have to sell their homes each year to help pay for the large, ever-increasing costs of residential care. And in doing so, often denying their children any inheritance.

These increases are being fuelled by local council cuts that see extra costs piled on those who pay for their care because they have savings of more than £23,500, whilst those who have no funds for whatever the reason, get all their care free.

At least 20,000 pensioners are forced to sell their homes every year to pay the huge costs of residential care, denying their children an inheritance.

Age UK’s figures, compiled using data from healthcare analysts Laing & Buisson, represent average increases including both the fees paid by local councils for state-funded residents as well as those paid by private payers.

Self-funders pay around £100.00 more for their places than local councils, meaning the fee increases hide the reality that costs for private residents are rising even more steeply.

Economist Andrew Dilnot suggested in his report last year that there should be a cap of around £35,000 to prevent unlimited charges. But there are indications that insurance schemes to enable this would not be in place for another 15 years.

Under funding crisis in care is hitting older people hard and self-funding care home residents are unjustly having to foot the bill for cuts to social care. Care home residents aren’t in a position to move and shop around for more affordable deals.  And for those who self fund, the current low interest rates earned from savings accounts won’t cover these price increases.