Care home fees more than double to £7,500 a month in five years, family says

A man in West Sussex saw the monthly bill for his uncle's care more than double to £7,500 within five years, illustrating the pressure many families face as care home fees rise faster than inflation and savings erode.

The uncle, identified in family accounts as Richard, was forced to move after his previous home issued a series of annual "fee review" notices that raised charges from a standing order of £3,410 in 2020 to £7,500 from Jan. 1 of this year. The home said some of the cost had been offset by funded nursing care — an NHS payment of roughly £700 to £800 a month when a resident requires a registered nurse — but the family still faced substantial private payments.

The care provider, DSL Care Ltd, said staff costs, the COVID-19 pandemic and the Government's increase in employers' National Insurance payments contributed to the year-on-year rises. It also told the family the most recent increase reflected, where applicable, changes in individual residents' care needs, citing "medication management and falls risk management."

The family asked whether the escalating needs might make Richard eligible for NHS Continuing Healthcare (CHC), which funds care on the basis of complex health needs. The care home replied that there was "not enough complex nursing care evidence to support this."

Under current English rules, people can seek local authority help when their capital falls below £23,250. The family estimates Richard's savings will reach that threshold in about seven years at current rates of spending, potentially sooner if fees continue to rise rapidly. After discussing options, the family moved him to a different home charging about £1,500 less per month. The move, they said, bought an extra two years of care from his savings.

Industry and charity figures say many families face similar choices. About 400,000 people in the UK live in residential and nursing homes; roughly half receive local authority or NHS financial support and the remainder pay privately, according to sector figures cited by the family. Industry website carehome.co.uk gives an average monthly cost of £5,164 for residential care and £6,180 for nursing care.

Caroline Abrahams, charity director at Age UK, said the rise in some care home fees "is very worrying" and that most people needing social care meet at least some of the cost themselves. "The ongoing cost-of-living crisis means they are facing even higher bills, draining their savings faster than ever before," she said. "This isn't the fault of care homes because most of their costs have risen, including their wage bills, meaning they generally have no choice but to pass these increases on."

Heledd Wyn, director at the Association of Lifetime Lawyers, pointed to multiple drivers of fee increases, including higher staffing costs, rising insurance premiums and a widening gap between what local authorities can afford and what private individuals are charged. "With many care homes operating on a for-profit basis, private residents often end up shouldering more of the financial burden, especially as social care remains means-tested in England," she said.

Small and medium-sized care providers have warned that residents are sometimes moved when savings run out because local authority funding rates are considerably lower than private fees. Nadra Ahmed, co-chair of the National Care Association, said private funders pay roughly £1,300 a week on average while local authorities pay about £700. "Local authorities used to top up the fees but they no longer do that," she said, warning that moves can be disruptive and distressing for residents accustomed to staff and fellow residents.

Families with concerns about fee increases can make complaints to the Local Government and Social Care Ombudsman. The Ombudsman recently upheld a complaint where a provider increased fees without changing a resident's contract or conducting an assessed change in needs; the matter was referred to the Care Quality Commission and the provider's registration was cancelled. Amerdeep Somal, the Ombudsman, said providers must assess needs and ensure any contractual changes are "transparent, justifiable and based on these assessed needs."

Experts and advisers advise early planning to reduce the risk of being forced to move because of costs. Jane Finnerty, a director at the Society of Later Life Advisers (SOLLA), recommended seeking specialist financial advice early, ensuring benefits such as Attendance Allowance are claimed, registering Lasting Power of Attorney for finances and health, reviewing contractual terms with a solicitor, and exploring financial products such as immediate needs annuities. She cautioned that annuities and similar products are tailored to individuals and may not allow recouping sums if care needs change.

The family said they had appointed deputies under the Court of Protection to manage the uncle's affairs after he suffered a catastrophic stroke in his late 50s about 30 years ago. The nephew who now manages the funds said the rising bills have turned a lifetime's savings into a significant outflow, and that moving the uncle to a cheaper home provided some breathing room but not a long-term solution.

Ian Campbell Lyle, a director at DSL Care, said the company recognised the pressures on residents and families but maintained that increased care needs had been the main factor in the price changes and that the provider continued to focus on the quality of care. The family said the new placement keeps the uncle comfortable for now, but that without structural changes to how social care is funded, many families will face similar decisions as private savings are consumed.

The case highlights the practical choices families face between paying private fees, seeking state funding through means-tested local authority support or CHC assessments, and using financial products or legal arrangements to protect capital. It also illustrates the tensions between rising provider costs and the fixed rates local authorities can pay, and the potential for disputes over whether fee increases are justified by changes in assessed care needs.