THE government has commissioned a major review of funding for elderly care in England after new figures reveal care homes are facing substantial cuts in fees from councils.
Independent body the Commission on Funding of Care and Support is expected to wrap up the review by the end of July, after which it will present its recommendations to ministers on how best to balance the books.
Figures released from leading health economist William Laing, who carries out annual surveys of fees councils pay to care homes, show a nominal increase of just 0.5 per cent this year, which equates to a real term cut of 2.5 per cent once inflation is considered.
However, most councils have opted to completely freeze fees, which, for the care homes on their books, means a 3 per cent real terms cut.
The worry is this could mean many more homes face the same fate as Britain’s largest care provider Southern Cross, which recently narrowly escaped going into administration.
Just over half of all elderly care homes are paid for by local councils.
Mr Laing added that on average, councils were paying about £100 a week less than the true cost of care per resident.
This has enabled privately-run care homes to charge above the market rate for services, while many councils are forced to sell off homes.
To keep an eye on the progress of the review, visit the Commission on Funding of Care and Support’s website www.dilnotcommission.dh.gov.uk
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