Cost of care should be set nationally but is a postcode lottery

OLDER people hit by a postcode lottery of care costs have to pay tens of thousands of pounds extra a year for help in some parts of the country.

A place in a private residential home now costs an average of £848 per week.

But the most expensive ones charge more than twice what it costs elsewhere, research says.

Fees start at £621 a week in Blaenau Gwent, South Wales, while the most expensive places are offered in Islington, north London, at £1,488.

That works out at a difference of more than £45,000 a year, according to findings by Legal & General.

With care bills so high, one in four elderly residents will run out of money, retirement experts are warning.

Dr Sam Roberts, managing director of Legal & General’s retirement arm, said: “Very few families plan their finances to take into account later life care.

“Care can be one of the more expensive costs someone will encounter.

“If you are living in an expensive location, such as London, for instance, you need a lot more money to fund care, and the risk of running out of money is much higher.” The most expensive areas for residential care costs are overwhelmingly in Greater London boroughs, with Islington, Westminster (£1,483) and Hammersmith & Fulham (£1,468) topping the table of weekly charges.

Outside the capital, the highest fees are found in Windsor & Maidenhead (£1,203) and in Elmbridge, Surrey (£1,142).

But other areas have significantly lower care costs.

Support

Research found that Stokeon-Trent (£646), Blackpool (£644) and Merthyr Tydfil (£641) have some of the lowest for people needing private residential support, with the least expensive in Blaenau Gwent.

Around 1.3 million older people request care each year, but only around 700,000 receive it, according to L&G’s research which has been released to mark the launch of its Care Concierge service.

Even within the same towns and cities there are differences between the cost of private care and the local council-paid fee – despite selffunders

Private care is served up at a price

and council-funded residents living in the same home.

On average, this gap amounts to £229 a week, the research found.

The biggest difference uncovered by the study was in Hammersmith & Fulham, at £814, while the smallest difference can be found in Bristol where there is a gap of just £20.

Further research from the Institute for Fiscal Studies found that the amount of money spent by the state per person on long-term care has fallen by 31 per cent over the last decade.

Again, the drop in funds varies considerably around the country.

L&G’s Dr Roberts said: “The reality is that there is no national system of long-term care.

“It’s a complex process that can be very different for individuals based on a number of factors, such as their benefit entitlements or health needs.

“We are seeing some great innovations and initiatives in the market to improve the cost and quality of care.

“But we know that people can benefit from personal guidance to navigate a complicated system.”