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!
Please subscribe, or donate a coffee (I drink a lot of coffee) - “God Bless You!” if you can’t or don’t want to contribute. Coffee donations here: https://ko-fi.com/peterhalligan
Yet more wicked & evil profiteering that will cost the elderly folk's lives.
I wish….
My Father is paying £72,000 pa and all the care homes in his area are about the same price.