This is well above the headline inflation rate – even when this was at its highest point in the past year at 10.1% in October 2022.
Here, we dive into the stats on the cost of care homes, and find out what you can do to ease the burden.
How much has the cost of care increased?
Research analysts Laing Buisson compiled the average fees charged by for-profit care homes for older people and those with dementia in 2022-23. The average was across both public and private payers combined.
We compared this data to the previous report of 2021-22 data and found out how much the cost of care had increased.
The cost of care varies between residential and nursing care homes. On average, nursing care costs 3.5% more, but it’s residential care prices that have seen the steepest inflation.
Why are care home costs rising so much?
Currently, the sector has a problem with staff retention. With pay usually close to minimum wage for gruelling work, many turn instead to retail or hospitality. This means care homes regularly go through expensive hiring processes.
Care homes with buildings that aren’t owned outright will also suffer from climbing mortgage rates.
All of these factors combine to squeeze the care home owners' profits, so they pass those costs onto their residents.
Find out more:How much do you need to save?
The good news is, more than half of care home residents have their costs at least partially covered by their local council.
Your council must cover some or all of your care fees if you’re assessed as needing care and have less than £23,250 in assets in England and Northern Ireland, £28,750 in Scotland or £50,000 in Wales.
If you have been self-funding and your assets dip below these thresholds, the council will pick up the bill.
Lifetime cost of care in each region
By 'lifetime' we mean 4.4 years, which is the life expectancy for people aged 65 or over in all care homes.
What happened to the cap on care costs?
Back in September 2021, Boris Johnson committed to cap lifetime care costs at £86,000 – though not including food or accomodation.
He also planned to raise the asset threshold (the amount you can have before you receive council support for funding) to £100,000 and to pay for this with an additional National Insurance contribution known as the health and social care levy.
Since then, enthusiasm from the government has dwindled and reforms have thinned out. First came the scrapping of the levy, then the other measures were delayed until 2025 without much further detail.
Caroline Abrahams, charity director at Age UK said, ‘It would be fairer to the public for there to be a clear statement of intent from the Prime Minister either way, rather than leaving the cap hanging and people facing huge bills wondering if this relief is on the way.
‘In the meantime, it would be wise for individuals not to bank on the hope that a cap will be introduced because we simply do not know if it will happen or not.’
How can you fund care?
Selling your home: Investment bonds:source https://www.which.co.uk/news/article/care-home-fees-soar-amid-cost-of-living-crisis-aMvhr6W5Vt7D