Rising care costs mean elderly people’s quality of life may be determined by their wealth | Personal Finance | Finance

Elderly Britons face rising costs for their care needs risking an increase in inequality between rich and poor.

Liban Saleh, co-founder and CEO at CareCompare, spoke to Express.co.uk about the soaring bills facing frail older Britons and their families.

He said: “The cost of care homes has significantly increased over the past few years, rising almost 10 percent between 2016 and 2017, and now costing around £40,000 per year in 2023 (compared to just under £33,904 in 2017).

“These figures present an uncomfortable and unequal image of the UK, as it seems that elderly people’s quality of life may ultimately be determined by their financial status.”

Mr Saleh set up the comparison site CareCompare after struggling to find the right care package for his grandfather.

He said care homes in the north of England are typically cheaper than those in the south and south east.

But elderly people are often limited in where they can go as they want to be near their families and they may have health conditions.

He explained: “The cost of the care homes will depend on the part of England you live in, any savings you have, the property of the care home, and whether the person in question needs specific types of care.

“Nursing care is more expensive than residential care and can cost between £35,000 to £55,000 per year.

“Specialist care (which is provided to people suffering from conditions like dementia) can be even more expensive than that.

“Local authorities can sometimes have grants or assisted funding, but that will depend on where you live, your capital and assets, private and state pensions, and benefits.

“In the UK, you usually have to pay for all of your care fees if you earn over £23,250 per year, and can have assistance if you earn over £14,250. If you earn less than those amounts, you can consult with your local authority.”

Another concern is the number of available care homes has dropped since 2022 with calls for more Government funding and help for care homes to maintain services.

Ministers have set out plans for a social care cap, limiting the amount a person has to spend on their personal care costs over their lifetime to £86,000. This will come into effect in October 2025.

But Mr Saleh warned the cap will be limited in its scope. He said: “This cap will only cover expenses that relate to personal care (such as medications, getting dressed, food, bathing, et cetera), while other costs associated with cleaning and heating (also known as ‘hotel costs’) are not covered.

“This means that anyone planning on a budget for future care home costs will have to account for the cap being introduced in late 2025, as well as the fact that only certain expenses will be covered.”

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.