How much is too much? Care home fees subject to further increases

The cost of care home fees has risen sharply once again this year, leaving many residents and their families questioning how much more they can realistically afford. While many families recognise that some level of increase is inevitable, the scale and frequency of recent rises has caused significant concern. For those already paying substantial fees, continued increases can quickly become unsustainable and, in some cases, unmanageable.

As Lisa Morgan, Partner and Head of the Nursing Care team at Hugh James, has previously highlighted, care home fees are already at a high level and are expected to continue rising in the current climate.

The growing financial pressure on families

Recent figures suggest that the average cost of residential care now stands at around £1,300 per week, rising to over £1,500 per week for nursing care, placing a substantial financial burden on those who are required to self-fund.

Why are care home fees increasing?

There are, of course, several contributing factors behind these increases. The ongoing cost-of-living crisis has had a profound impact across the sector, with care homes facing higher staffing costs, alongside rising energy and food prices. At the same time, demand for care continues to grow as the population ages, placing further strain on an already stretched social care system.

Unsurprisingly, these pressures are being passed on to families. For many, this creates a domino effect, with residents or their loved ones having to find additional funds simply to maintain existing levels of care. As has been highlighted in commentary from the sector, the financial impact can be severe, with families often forced to draw on life savings or even sell property to meet cost of care.

Increases in the National Living Wage have also been cited as a key driver. While higher wages are essential to support the workforce, they inevitably increase operating costs for care providers. Staff retention remains another ongoing challenge, with high turnover rates often leading to further expenses associated with recruitment and training.

Self-funders face the greatest impact

It is often self-funding residents who are most affected. Unlike those whose care is funded by local authorities or health bodies, where fees are typically agreed at fixed rates, self-funders can find themselves paying considerably more for the same level of care. This disparity continues to raise questions around fairness within the system.

At the same time, there appears to be a concerning trend in relation to NHS Continuing Healthcare (CHC). Despite increasing numbers of individuals requiring care, fewer people appear to be accessing this funding. As Lisa Morgan has noted, many more people could be eligible for NHS Continuing Healthcare if the guidelines were applied less restrictively, highlighting ongoing concerns around access to funding.

Why NHS Continuing Healthcare eligibility matters

This is particularly significant because individuals who are eligible for NHS Continuing Healthcare are entitled to have the full cost of their care funded by the NHS, regardless of their financial circumstances. CHC is available to those with complex, long-term health needs, and eligibility is determined under the National Framework.

However, the assessment process is far from straightforward. Determining eligibility involves a detailed and often subjective evaluation of an individual’s needs, specifically whether those needs go beyond what a local authority would be expected to provide. As a result, the process can be complex, time-consuming, and challenging for families to navigate without support.

How Hugh James can help

With care fees continuing to rise, ensuring that individuals are correctly assessed for NHS Continuing Healthcare has never been more important. Securing the appropriate funding can make a substantial difference, both financially and in terms of peace of mind.

Hugh James is recognised as a national leader in the field of Continuing Healthcare, having recovered over £250 million for clients since 2006. Our specialist team supports families in securing funding, challenging negative decisions, and reviewing cases retrospectively where care may have been wrongly self-funded.