Skyrocketing care home costs: Uncle's expenses jump to £7,500 per month over five years – insights on what I should have been aware of: ANDREW PENMAN
In the picturesque town of Horsham, West Sussex, a man named Richard lived in a care home called Wellcross Grange. However, his stay was marked by an escalating financial burden that would eventually lead him to seek a new home.
In 2020, Richard's monthly standing order was £3,410, a figure that belied the actual fees charged by the home. Over the years, these fees had more than doubled, reaching an alarming £4,869 annually in November 2020.
The company operating the nursing home before Richard's move to a more affordable home remains unclear from the provided search results. However, one nursing home mentioned is the Alten- und Pflegeheim Bruder-Jordan-Haus in Dortmund, run by the Franciscans (Franziskaner). Richard moved there in 2018 before relocating in 2022 to another community.
The Local Government and Social Care Ombudsman upheld a complaint from a son whose care home increased charges without changing the contract or assessing changes to his mother's needs, highlighting a concerning trend in the industry.
The company that runs Richard's current home, DSL Care Ltd, attributes the fee increases to staff costs and the impact of Covid-19. Ian Campbell Lyle, a director of DSL Care, states that increased care needs have been the main factor in the price changes.
However, these rising costs have forced many residents like Richard out of care homes when their savings run out, as noted by Nadra Ahmed, co-chair of the National Care Association.
In times like these, seeking professional advice can be beneficial. SOLLA-accredited advisers can help with long-term financial planning, ensuring benefits such as Attendance Allowance are claimed, and covering retirement planning, tax, and estate planning, among other things. Financial products like immediate needs annuities can provide a guaranteed monthly payment to help cover care fees, but it might not be possible to recoup any money from the initial payment if the care is no longer needed.
It is also crucial to have a Lasting Power of Attorney (LPA) for finances and health and welfare registered, ensuring that decisions regarding your care and finances are made according to your wishes should you become unable to do so.
Local authorities no longer top up the fees for care homes, making it even more essential for individuals to plan their care home finances carefully.
Richard's story takes a turn for the better when he moved to a new care home that charges £1,500 less each month compared to the previous one. Despite the high-quality care at DSL Care's home, the final straw was the fee review effective from January 1, 2022, which increased the monthly charge to a staggering £7,500.
DSL Care believes that the high quality of care at their home remains a key differentiator, but the rising costs have left many residents like Richard seeking more affordable options. The tale of Richard's journey serves as a reminder of the financial challenges faced by care home residents and the importance of careful financial planning.
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