Care home costs rise ten times faster than pensioner incomes


Posted on September 26th, by geoff in CT Extra. Comments Off on Care home costs rise ten times faster than pensioner incomes

Caring Times, October 2016

The annual cost of a care home has increased by £1,536 over the past year – almost ten times the average £156 income gains realised by pensioners over the same period, according to a five year study by Prestige Nursing + Care.

Costs for an average single room in a UK residential care home have risen by 5.2% to £30,926, more than double the average pensioner’s income of £14,456, while pensioner incomes grew by just 1.1% over the last year.

The annual growth rate of care costs (5.2%) from 2015 to 2016 has more than doubled from the 2.5% growth rate from 2014 to 2015. This is far higher than the current rate of inflation (0.3%) and the fastest growth rate since Prestige began collecting data in 2012.

The annual shortfall between care costs and pensioner income amounts to £16,470 (£317 a week), should they need to pay for residential care in later life, up 16% from £14,196 four years ago.

The total cost of care annually amounts to 114% of the average pensioner’s income after tax. This shortfall has increased by 9% in the last year alone from £15,089 a year, or £290 a week, in 2015.

This means the average pensioner’s income would now pay for less than six months of care – despite research from Saga showing the average stay in a residential home is 2.5 years.





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