Government urged to act on care crisis
ELDERLY SET TO LOSE 56% OF VALUE OF THEIR HOME
A FRESH social care scandal has been highlighted in a new report – the huge financial cost to the elderly of paying to be looked after, particularly those in the North East.
Those above the threshold of £23,250 capital and savings have to meet their own costs and most have to use their home to do so.
A report out today has shown that people in the North East lose more than half the value of their properties his way – the highest figure by percentage in the country.
The average stay in a care home is 30 months. The average weekly cost in the region is £554 which means a bill of £71,993.
That adds up to 56% of the average property price in the North East of £128,631.
By contrast, for those living in London where the average house price is around £484,000, thirty months of average residential care costs of £666 per week would only account for around 18% of the value of that property.
The length of time someone stays in a residential home can vary widely, and for those with the longest stays, the total bill can exceed the value of the typical house in several parts of the UK.
Academic evidence shows that 10% of residential home residents have a stay of 6.5 years or more in a number of regions including the North East.
The research was carried out by insurance giant Royal London.
Its head of protection, Debbie Kennedy, said: “These figures are a shocking reminder of the huge costs which growing numbers of us will face if we need residential care later in life. Even an average stay in a care home can eat up half the value of your home, depending where you live in the country.
“The whole system is a lottery and we need to find better ways of supporting people to cope with these large and unpredictable bills”.
On April 1, 2016, the Government had planned to implement a cap on the amount of money everyone would pay for the cost of care over the course of their lifetime. This was set to be at £72,000.
Meanwhile, the upper limit threshold below which people were eligible local authority help was to be raised.
However, the Government has put back the plan to April 2020. There are concerns that with a new Prime Minister and Chancellor in place, it could be subject to delays.
Steve Webb, director of policy at Royal London said: “Successive governments have failed to grasp the nettle when it comes to care costs.
“For over 20 years we have had a series of expert reports and policy papers, but little has changed. We need urgent action.”