Sign of the times – residents of UK care homes face double digit increases in annual costs to an annual average of 46,000 pounds (55,000 dollars)
In more evidence that the massive leaps in inflation (as a direct result of big government policies in the wider economy) cause collateral damage to the most disadvantaged in society, residential care home costs in the UK are rising faster than inflation.
From here:
Consumer price inflation, UK - Office for National Statistics
“The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 9.2% in the 12 months to February 2023, up from 8.8% in January.
The largest upward contributions to the annual CPIH inflation rate in February 2023 came from housing and household services (principally from electricity, gas, and other fuels), and food and non-alcoholic beverages.”
CPIH = Headline Consumer Price Index, which replaced the CPI back in 2017. The old CPI measure actually increased by 10.4% for the same period. Funny that.
Enquiring minds want to know how much of that inflation came from “green” and pro-Ukraine war UK Government policies. My bet? All of it, and some.
Here’s an article from the Daily Express in the UK:
“Care home costs are soaring due to higher energy bills, food costs and staff salaries, research has revealed. Pensioners are now paying a staggering £46,000 a year for a care home place,”
“This won’t abate any time soon and the majority of care homes warn they are likely to increase costs again this year so, unfortunately, those that might need a care home in the next few years will almost certainly be paying more.”
“COMMENT BY LISA MORGAN - The dramatic rise in the cost of care is not surprising as it is common for our clients to be paying between £8,000 to £10,000 a month in care.”
Holy crap!£10,000 a month is £120,000 a year = $144,000!!!
There is an upcoming cap on costs but not until 2025. “The cap will ensure that nobody pays more than £86,000 for social care in their lifetime.” Of course, the more expensive residential care homes will get a direct subsidy from the UK government for the excess above £86,000 so will raise their fees – just like US university tuition fees. Those with cheaper residential care home costs will raise their prices – because they have no need to control them or compete as every other care home will be doing the same. Socialism at tis finest – spending other people’s money until it is all gone and care homes go broke.
“It’s also worth remembering that any cap on costs doesn’t include all the costs of care. It won’t include rent, food and utility bills.”
So, NOT a cap on costs. As with the way that central banks view “relevant” inflation, “core CPI” excludes food and energy (and rent).
From here: Average weekly earnings in Great Britain - Office for National Statistics (ons.gov.uk)
Average weekly earnings for total pay was £630 and for regular pay was £589 in January 2023 – that works out at £32,760 for total pay and £30,628 for regular pay ($$39,312 nd $36,750).
So, on average, residential care home costs are 40% higher than average total pay.
The solution might be live-in carers.
“The personalised care that live-in care offers is increasingly becoming an attractive option for people to consider. This is an area to watch in the coming years.”
Sounds like an opportunity to create a whole army of them, maybe via a charity. Security of individuals is obviously going to be a big issue.
Of course, a move back to the extended family living in the same house would be the cheapest.
What was one of those commandments? Exodus 20:12 “Honor your father and your mother, so that you may live long in the land the Lord your God is giving you.£
What an “anti-woke” sentiment! To the “woke” the State is your parent!
Onwards!
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Yet more wicked & evil profiteering that will cost the elderly folk's lives.
similar here in the U.S. Costs vary, depending where you live and the level of care needed. The economic equation changes, also, if there is one person needing care or two -- if two, one caregiver in the home may be a savings over a care home placement for two, even sharing one room. If a person needs only daytime care while the adult child goes to his/her job, it can be cheaper to be at home. A 24/7 caregiver is astronomically expensive, so then the equation tips towards a care home/assisted living.
The arrangement you suggest, someone who gets "room and board" as part of their salary, is live-in, but who does not work 24/7, might be a good deal.
Having elderly Mom/Dad move in with adult children sounds like a good solution, but once the needs increase to the point of needing a keeper at all hours and help with all activities of daily living, without support for the caregiver that is very, very difficult, especially if the adult child is full-time employed outside the home, or is experiencing their own aging issues (for example, someone in their 60s caring for someone in their 80s/90s).
We need to do something, though -- care for elderly who need care is increasingly beyond the reach for many -- so very stressful.
I suggest assisted living placed on college campuses, where the elderly can attend classes to keep active and involved, and the college students can vastly subsidize their tuition or room/board by part-time caring for their elderly neighbors, and form friendships between the generations. That might be a win-win.