Private fee payers LA care subsidies “truly shocking”

Money

Financial advisory services business Care Planning Services has said the level of subsidies being paid by private fee payers to fund local authority care was “truly shocking”.

The financial adviser said local council weekly fees in Bath and North Somerset were £452 and £576 for residential and nursing care in 2016, respectively.

According to Knight Frank figures the average weekly cost of care in the South West was £713 and £810 for residential and nursing care.

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Sarah Clarke from Care Planning Services told the Bath Chronicle: “We have known about the unfair cross-subsidies which exist between privately funded and local authority funded residents for a while, but the extent to which privately funded residents are picking up the tab for the unfeasibly low local authority fee rates is truly shocking.

“The figures suggest that in the South West, either privately funded care home and nursing care residents are paying over the average to subsidise local authority residents, or that our care homes are attempting to operate on fees that are simply not sustainable to deliver high quality care in the long term.”

LaingBuisson said earlier last month that private funders were paying a £1.3bn ‘care tax’ to cover the underfunding of care (see Private funders paying £1.3bn ‘care tax’, says LaingBuisson).

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