Care home giant ditches 'after death' fees following CMA action

A care home provider running 64 care homes has agreed to stop charging fees after a resident dies, following action from the Competition and Markets Authority (CMA).

Care home group Maria Mallaband Care Group and its sister company Countrywide Care Homes, which runs care homes in England and Northern Ireland, has agreed to amend its contract terms to stop charging one month’s worth of fees after the death of a resident.

The group has voluntarily promised to amend its contract terms at its existing homes and in any future homes it operates, to ensure fees will be only taken up to the date of a resident’s death.

The provider's decision follows an ongoing consumer law investigation by the CMA into fees charged by care home providers and the watchdog's year-long study of the care home market. The CMA found care homes charging fees after residents' deaths ‘was widespread across the sector and that practices vary’.

In a statement the competition watchdog said: ‘Whilst the Maria Mallaband Care Group has co-operated and constructively engaged with the CMA, and agreed to make changes voluntarily to its previous terms and practices, it does not consider that its previous terms or policies were unfair.

'However, in light of the CMA’s concerns, it has decided to make changes that require fees to be paid only up to the date of death in contracts for care concluded with self-funded residents. It also confirmed that no additional charges or fees will be applied, irrespective of when the room is cleared of the resident’s possessions.'

The majority (69 out of 120) care home providers who responded to a CMA survey said that they do not charge fees following the death of a self-funded resident, only charge for a period of up to three days, or only charge fees until the room is cleared of possessions.

The CMA has said the period for which fees are charged after death (‘payment period’) varies significantly between different care homes and between types of contracts, with self-funding residents sometimes required to pay for much longer periods than local authorities.

Care homes' views sought

‘In order to ensure that care homes take a consistent and lawful approach, the CMA will be publishing compliance advice for the sector as a whole', the watchdog has stated.

On 19 January, the CMA launched a public consultation seeking views on its draft compliance advice, to determine whether it is fair to charge fees after death and, if so, for how long.

Michael Grenfell, executive director for enforcement at the CMA, said: “It is important that care home residents, and their families, can be confident they will be fairly treated, especially during the difficult period after a family member has died.

“We are pleased that the Maria Mallaband Care Group has been responsive to our concerns about fees charged after death, and has taken clear and positive steps to make changes ahead of our public consultation on such fees. We expect other care homes to make any necessary changes in line with our final views when published. We now want to hear from families and care homes as part of our consultation.”

The consultation on a draft of the CMA’s compliance advice will close at 5pm on 16 February.

To add your view to the consultation visit: www.gov.uk/government/consultations/care-homes-for-the-elderly-charging-fees-after-death