Probe into care homes ‘charging families after their loved ones die’
CARE homes are to be probed by an official watchdog amid fears families are being charged for accommodation and services after relatives die.
Concerns that residents and their families are also being ripped off with hidden charges, shock bills and confusing requests for top-up payments are under the spotlight too.
The investigation was unveiled yesterday by the Competition and Markets Authority as it announced a consumer protection case.
Initial findings of a CMA study of the care home sector, launched after concerns about unexpected charges, have highlighted wider issues.
These include concerns that some homes might not be treating residents fairly and that certain practices and contract terms break laws.
Other worries include a lack of information about prices – which can top £1,000 a week – and contracts giving homes wide-ranging discretion to ask residents to leave at short notice.
Early findings suggest many people find it difficult to get the information they need and are confused by the social care system and funding options. Others do not know how to find or choose between homes.
Other complaints include redress systems which do not work well and residents finding it “very challenging” to make complaints.
The CMA also pointed out that public funding pressures and uncertainty meant the sector had little incentive to undertake the investment to meet future demand.
Andrea Coscelli, acting CMA chief executive, said: “Some of the most vulnerable people in our society use care homes, often moving to them in extremely difficult circumstances.
Distress
“It’s essential they are able to make informed choices, understand how services will be paid for and be confident they will be fairly treated and able to complain effectively.”
Ms Coscelli added: “Demand for places is expected to surge over the next two decades. To make sure the capacity this requires is available, it needs to be built in good time.
“At present, short-term funding pressures and uncertainty mean the sector is not attracting investment.”
Citizens Advice chief executive Gillian Guy said: “Older people and their families are suffering unnecessary distress and financial pressure due to gaps in consumer protection in the care home market.
“The CMA has identified the need for improvements in how complaints are handled and that people need better information and support.
“The CMA is right to look at consumer protections and should seek to strengthen these where existing rules are not providing the right cover.”
Most people are expected to pay something towards care fees although councils cover part or most of the bill, depending on the person’s assets.
A place at a care home costs an average of £600-800 a week but fees are rising by up to 10 per cent a year.