Local Authority Care Funding to Reduce

The first figures from a local authority for the funding of residential care for the 2011 financial year show a decrease of 3% from April. Details of Cambridgeshire’s proposals show that it intends to pay £364 a week for homes in Cambridge, a fall from £375. We have seen information that suggests that another authority plans to cut rates by 4%.

We expect that other authorities will follow this lead.

Why this matters?

If you, or someone close to you is considering care, you will appreciate how difficult it is to find quality care at the existing local authority rates. These are usually significantly lower than private funding rates. Going forwards care homes will find themselves under increasing regulatory pressure coupled with rising costs such as fuel, food, employers National Insurance, VAT and wages whilst facing a reduction in their income.

We fear that this proposed reduction in funding will cause many homes to ask local authority residents to leave or pay top ups. The alternative may be to face going out of business.

The cut will make it even harder to find a care home that will accept local authority funding and self-funders who run down to £23,250 will more frequently be expected to top-up or asked to find an alternative home.

Cross Subsidy

Whilst being unfair to the poorest in our society this is also unfair to those who are self funding their care in homes that also accept local authority funded residents. It is clear that self-funders will be required to pay more to cover the reduction in the fees paid by their fellow local authority funded residents.

Many people who have been forced to sell their homes to fund care will now be effectively subsidising their local authority. This is the equivalent of an additional council tax for those who are paying for their own care.

Many of these people feel that the state should be funding their care anyway; they will be shocked to find that they are now being asked to contribute towards the care of others.

Options

There are many funding options open to self-funders when moving into care and it is often possible to fund care for life and preserve some assets for the next generation. No-one wins when funds run out. Specialist firms such as ours can offer a real benefit in ensuring that the funds available are put to the best possible use.

Please click ’Enquire’ above for more information or telephone us on 0800 078 7430.

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