New law to stop scandal of hidden care home fees
CARE homes that rip off vulnerable residents face criminal prosecution under a crackdown unveiled today.
Government action is being taken to end a scandal of unscrupulous providers fleecing families through secretive fees and hidden charges.
Tens of thousands of residents have fallen foul of unfair practices designed to squeeze the most amount of cash from those needing around-the-clock care.
There are around 16,000 homes registered with the Care Quality Commission but one in five is failing.
It is now an offence for providers who fail to give prospective residents and families clear, accurate and up front details.
The intervention comes ahead of the publication of an eagerly awaited social care green paper which campaigners hope will make it mandatory for CCTV to be installed in communal areas.
The Competition and Markets Authority found examples of malpractice including families unable to find information about pricing and terms. Investigators said they were deeply concerned that thousands of families had been unable to make informed decisions. New guidance makes it clear providers could risk breaking the law.
They must simplify contract terms making them clear, easy to understand and accessible. Terms contained in multiple documents could be deemed as unlawfully “hidden”.
Most importantly fee variation terms should set out clearly the circumstances in which residents’ charges might change.
The move is another victory for the Daily Express and our Respect For The Elderly crusade which has shone a light on horrific cases of abuse and neglect.
Jayne Connery, founder and director of Care Campaign for the Vulnerable, said: “We welcome anything that provides greater transparency around all aspects of living in a care home.
“This particular guidance will be well received by families who are often responsible for seeking placements for elderly loved ones. Pricing is often confusing.
“It is our hope those protections will include mandatory independent CCTV safety monitoring in all care homes throughout the UK.”
The guidance has been described as a watershed moment for consumer rights.
Providers will also need to provide details of their complaints procedures and make sure their grievance policy is easy to find and use.
CMA chief executive Andrea Coscelli said: “It’s vital care homes treat residents and their families fairly, which is why we have issued advice to all homes across the UK to help them understand what they should and should not be doing under consumer law.”
Have you or a loved one been a victim of sky-high care fees or hidden charges? Email giles.sheldrick@reachplc.com