I think your estimate is too low though because of limited supply and cross subsidy from self-funders to make up the cost gap from council funds for state-funded residents.
Local authorities offer to to £7-800 per week for those without funds — a lower figure — but Carehome.co.uk says:
“The average weekly cost of residential care if you are a self-funder is £1,160, while the average nursing home cost if you are funding your own care is £1,410 per week across the UK. If you are paying for your own care, the monthly average cost of residential care is £4,640. Nursing care in a care home costs on average £5,640. This means residential care for a whole year (52 weeks) costs on average £60,320 and nursing home care costs on average £73,320 a year.”
In rural areas like mine the cost for self funders is often much, much more than this.
Yes - your message did help prompt this, thank you!
It's interesting, I've had some people also say my estimate is too high, because the average person only stays in a care home for under 2 years. I suspect the truth is that it can vary greatly, with a number between £100k and £200k being a reasonable representative (though far from the maximum) of what someone *might* end up paying.
Also while thinking about who pays and how, we should focus as a society on how to reduce costs for people who have complex care needs — say Alzheimer’s, lack of mobility and other issues — which require intensive support but not a hospital, yet in a way which thinks creatively about how to do things better.
Often the need for care is progressive, as someone needed more and more help to live at home. This is made worse if the family home is no longer suitable or there are no local family able to help.
What if we could create at scale (every village or town) attractive accomodation options which could adapt for greater care:
- Could the idea of alms houses be modernised to be light and pleasing with shared gardens and the chance for bookable visitor space, but also with enough units and then greater care options to allow health support to be on site reducing costs of travel?
- Could this be done in a not for profit way that reduced costs? Innovate with modular construction or timber framing? I understand this approach can radically reduce costs and it’s scalable. Ask our architecture students to work in options? A mayor national competition?
- Part exchange for houses which are no longer manageable and which would be so helpful to younger families?
We seem to be stuck with a lot of expensive provision for the end of life and little affordable that supports care and releases housing stock.
Could we do better if we took a nationwide approach on provision, not just costs? Or do we leave the market to provide… for itself?
Wouldn't most married couples each own a half-share of a property? That being the case there will be many home owners with assets of c.£50 - 150k outside London and the South East, assuming no substantial private pension assets.
Though with average house price is > £200k in every region except the north east (c. 3% of population, compared to c. 30% in London or south-east) - and most people having some assets outside the house - May's proposed increase to £100k would still be only helping those towards the bottom of the wealth percentile, even if slightly more than I suggested.
Agree that if you raised it to £150k you might start capturing a lot more.
If the state was awash with money then spending some of it on social care would make a lot of sense.
But right now Britain is skint and there are a lot more pressing calls on public funding. So I don't expect much if anything to be done about this.
Thanks for writing about this. So important.
I think your estimate is too low though because of limited supply and cross subsidy from self-funders to make up the cost gap from council funds for state-funded residents.
Local authorities offer to to £7-800 per week for those without funds — a lower figure — but Carehome.co.uk says:
“The average weekly cost of residential care if you are a self-funder is £1,160, while the average nursing home cost if you are funding your own care is £1,410 per week across the UK. If you are paying for your own care, the monthly average cost of residential care is £4,640. Nursing care in a care home costs on average £5,640. This means residential care for a whole year (52 weeks) costs on average £60,320 and nursing home care costs on average £73,320 a year.”
In rural areas like mine the cost for self funders is often much, much more than this.
https://www.carehome.co.uk/advice/care-home-fees-and-costs-how-much-do-you-pay
Yes - your message did help prompt this, thank you!
It's interesting, I've had some people also say my estimate is too high, because the average person only stays in a care home for under 2 years. I suspect the truth is that it can vary greatly, with a number between £100k and £200k being a reasonable representative (though far from the maximum) of what someone *might* end up paying.
Also while thinking about who pays and how, we should focus as a society on how to reduce costs for people who have complex care needs — say Alzheimer’s, lack of mobility and other issues — which require intensive support but not a hospital, yet in a way which thinks creatively about how to do things better.
Often the need for care is progressive, as someone needed more and more help to live at home. This is made worse if the family home is no longer suitable or there are no local family able to help.
What if we could create at scale (every village or town) attractive accomodation options which could adapt for greater care:
- Could the idea of alms houses be modernised to be light and pleasing with shared gardens and the chance for bookable visitor space, but also with enough units and then greater care options to allow health support to be on site reducing costs of travel?
- Could this be done in a not for profit way that reduced costs? Innovate with modular construction or timber framing? I understand this approach can radically reduce costs and it’s scalable. Ask our architecture students to work in options? A mayor national competition?
- Part exchange for houses which are no longer manageable and which would be so helpful to younger families?
We seem to be stuck with a lot of expensive provision for the end of life and little affordable that supports care and releases housing stock.
Could we do better if we took a nationwide approach on provision, not just costs? Or do we leave the market to provide… for itself?
This is a good and very clear round up of the issues - thanks for writing it.
I think your third chart should have £86,000 cap in the heading, not £35,000?
Thank you on both counts - now fixed.
Wouldn't most married couples each own a half-share of a property? That being the case there will be many home owners with assets of c.£50 - 150k outside London and the South East, assuming no substantial private pension assets.
Fair point.
Though with average house price is > £200k in every region except the north east (c. 3% of population, compared to c. 30% in London or south-east) - and most people having some assets outside the house - May's proposed increase to £100k would still be only helping those towards the bottom of the wealth percentile, even if slightly more than I suggested.
Agree that if you raised it to £150k you might start capturing a lot more.
Could you make people pay for their own care but offer enhanced IHT relief if care home costs exceed some percentage of the remaining estate.
Potentially - though this wouldn't help very many people (only 4% of estates pay inheritance tax).