Over one-third of care home residents struggling to pay for their care

Over one-third of care home residents face long term struggle of paying for their care according to new ONS statistics.

The research found that in 2019/20 it is estimated 143,774 or 36.7% of people in care homes in England were self-funders. This compares to 248,153 who are state-funded. The South East had the highest proportion of self-funders (45.4%) and the North East had the lowest (24.6%),

House prices alone do not explain regional differences. London may have the highest house prices, but it had the second lowest proportion of self-funders.

Last month the government announced the Health and Social Care Levy. As part of this the government introduced an £86,000 care cap on care costs though people must still find money to cover accommodation costs. People with assets up to £100,000 will also receive some state help from April 2023. Currently anyone with more than £23,350 in assets must meet their care costs in full.

Commenting on the figures, Helen Morrissey, Senior Pensions and Retirement Analyst at Hargreaves Lansdown said “Today’s figures show the sheer scale of the number of people who are paying the astronomical costs of care. Almost 150,000 people are having to foot the bill, and homeowners, in high property value areas, are particularly affected.”

“If you’re paying for care, finding the money to pay for this over the long term can cause real strain on family finances. While recent government announcements mean more people will get some help from the state, it won’t cover all the associated costs of care, so there will still be bills to pay. This help doesn’t start until April 2023 either, and if you already need care, or you need it between now and then, you won’t be entitled to this extra support from the state.”

“In England, if you have assets of less than £14,250, the council may pay for care – although it will also take your income into account. It will do a needs assessment, and a means test to check your assets, and if you qualify on both counts it will arrange the level of care it decides you need.”