A rise in dementia cases and imminent NI hikes is blamed for sky high charges (Image: Getty)
One in seven care homes is now charging frail and vulnerable residents more £1,800 a week in fees, shocking new data shows.
But the astronomical cost of care commonplace across Britain is set to rise again next month, typically by 10%.
It means tens of thousands of self-funding residents, some of whom languish in failing homes, will see charges increase to almost £2,000 a week, or £104,000 a year, according to an in-depth audit of the sector.
There are 16,566 care homes in the UK, including residential and nursing homes.
Nursing homes offer medical and personal support to some of the most needy who require more care than they can get at home, but do not need to be in hospital.
It means 2,366 facilities are charging fees almost three times the national UK salary of £37,430.
The eye-watering increase in the cost of care is placing an unbearable burden on families (Image: Hugh James)
The sobering data comes from detailed analysis published in LaingBuisson’s Care Homes for Older People UK Market Report – the Bible of nursing and residential care home services across the UK.
A spokesman said: “LaingBuisson found that the annualised value of care in residential settings across the UK is estimated at £26.2 billion at December 2024, having dipped to an annualised £17.4 billion in March 2021. The substantial recent growth in market size (40% in a period of four years and nine months) is very largely due to fee inflation, which has in turn been driven by cost inflation from National Living Wage uplifts.”
Eye-watering care costs are blamed on a rise in the number of dementia cases and the imminent increase in employers’ National Insurance contributions, a move by Chancellor Rachel Reeves that has sparked national protests, and which will clobber businesses from April 6.
The chaos comes as Labour has delayed social care reform until 2028 at the earliest, meaning families will continue to be forced to flog the family silver to cover exponential care costs.
Social care staff demonstrate over the catastrophic consequences of Rachel Reeves’ tax raid Budget (Image: Ian Vogler / Daily Mirror)
Lisa Morgan, partner in the nursing care fee recovery team at law firm Hugh James, said: “The eye-watering increase in the cost of care is placing an unbearable burden on families who already face the challenges of supporting loved ones in need.
“What should be a lifeline for those requiring care has instead become a financial strain, forcing families to choose between essential support and escalating costs. It’s crucial the Government takes action now and not continue pushing this into the long-grass to ensure care remains accessible and affordable for all, without pushing families into financial hardship.”
Last week social care providers told how they were facing a “struggle to survive” in the wake of the Budget battering.
On February 25 campaigners took part in an historic day of action, marching on Parliament to call for an exemption from NI hikes and wage bill rises which they claimed could send many providers to the wall.
The sector, which runs facilities looking after those requiring around-the-clock care, have been vocal in their criticism of the looming levies.
Care home owner Mike Padgham, chair of the Independent Care Group which speaks for providers, said: “With all the cost increases coming care providers are facing a struggle to survive this spring.
“Without some government help, we may well lose more and the number of people going without care will grow from the two million it already is.
“What this means is that social care providers will leave the sector, care will be rationed even more and the number of people going without will rocket.”
Mr Padgham has warned of the likely disastrous impact on social care of Labour’s Budget raid (Image: Andy Commins / Daily Mirror)
From April 6 employers will pay 15 per cent in NI contributions on salaries above £5,000, compared to 13.8 per cent on salaries above £9,100 now.
In addition, the National Living Wage will increase to £12.21 an hour, while the National Minimum Wage, for those aged 18-20, will rise to £10 an hour.
Professor Martin Green, Chief Executive of Care England, the charity representing independent providers, said: “The Government must take action before it’s too late.
“The message is crystal clear: We are watching the fabric of our care system unravel in front of our eyes. If the Government fails to act now, services will close, people will go without care, families will be left to shoulder unbearable burdens – and the NHS, already on its knees, will collapse under the weight of unmet social care needs. Every day of inaction pushes providers to implement their exit strategies and scale back services to point from which there may be no return.”
Analysis by the Nuffield Trust estimates social care providers face a £2.8 billion hit due to NI and wage increases.
Separately one in five of 1,180 providers polled by the Care Provider Alliance say they were planning to close, 73% will refuse new referrals from councils or the NHS, 57% planned to hand back contracts and 64% will make staff redundant. Nine in 10 are deeply concerned about the Budget’s impact on their viability to remain in business.