Which? exposes postcode lottery for residential care funding

New research from the consumer organisation Which? reveals a postcode lottery for care funding, with local authorities in the south paying much more for long-term care compared to the north. Not surprisingly, this has prompted renewed calls for changes to the “current funding system.”

Which? submitted Freedom of Information (FOI) requests to 180 local authorities across England, Wales and Northern Ireland and found huge variations in the standard weekly rate that councils contribute to the funding of residential care.

Generally, authorities in London and the south of England gave the highest rates, while the lowest were in the north. However, areas that are very close together can vary widely in care costs. In Greater London, for example, Which? found a difference of £138 for the standard weekly rate between neighbouring boroughs Bromley (£555) and Croydon (£417).

The research also shows that around a third (36 per cent) of councils have a maximum standard rate of £434 for personal care, with more than half (53 per cent) giving a maximum of £435 to £539. One in 10 councils gave a maximum of more than £540. The highest rate they found was Lewisham’s maximum of £768, while Blackburn and Darwen gave a rate of £357.

Responding to the Which? figures, Councillor Izzi Seccombe, Local Government Association’s community wellbeing spokesperson, commented: “Councils work closely with providers to ensure a diverse and quality provider market that gives people the right choice of care options. But despite their best efforts, many councils have had to squeeze what they pay care providers and this can vary in different areas.

“The current combined pressures of insufficient funding, growing demand and extra costs, mean that adult social care is facing a funding gap that is growing by at least £700 million a year, estimated to reach £2.9 billion by the end of the decade, even before the cost of the National Living Wage is taken into account in full.

“We need to see a change to the current funding system which, over the last five years, has seen an increase in funding for the NHS, but a decrease in funding for social care. This threatens to leave councils struggling to commission the essential support which keeps people out of hospital and living healthier and happier lives in their communities.”

The matter is also complicated by the fact that living in a care home can cost a resident up to £1,000 per week and half of residents have part or all of their fees paid by the council. Many people top up this contribution themselves, and could face potentially high bills in areas where the local authority pays a lower proportion of the full costs.

The Which? report found big differences between the standard rate some councils pay and what the cost would be if a person was paying for care, also known as self-funding. In Exeter, for example, the local authority pays £442 to £471 a week, while the fees they saw for self-funders ranged from £300 to £1,200. The variation in costs is partly down to local costs such as wages and property, and partly about individual councils negotiating costs with care homes when they bulk-purchase.

Which? executive director, Richard Lloyd, said: “Understanding the options available for long-term care can be a minefield, particularly with such huge variations in the funding available. People looking to make difficult decisions about care should use free, independent sources of advice like Which? to help them find the information that’s relevant to their situation.”