by Steve Beasant on 30 November, 2017
The UK care home sector is faced with an unsustainable £1bn funding gap, the Competition and Markets Authority has warned.
This has led to care homes propping up their finances by charging higher prices to those who pay for their own care, with average self-funders’ fees (£44,000 per year) around 40% higher than those paid by councils.
The watchdog also warned that uncertainty about future funding means more care homes are closing and there is not enough investment in new accommodation for council-funded residents.
“The government’s failure to tackle the £1bn hole in the care homes budget is leaving families to pick up the tab.
“It makes it even more astonishing that no extra cash was provided for social care in last week’s Budget.
“An ageing population and lack of funding is creating a ticking time bomb, with many care homes at risk of closing while demand continues to rise.
“More investment is urgently needed to put the care sector on a sustainable footing and ensure vulnerable older people are not let down.”
Competition and Markets Authority (CMA) review of residential care homes can be found hereLeave a comment