Prestige Nursing + Care: Cost of a Care Home Room Rises at Double Inflation Rate

Cost of a Care Home Room Rises at Double Inflation Rate

  • Average Over 55s Savings Pot Would Pay for 7 Months of Care
  • Average annual cost is £27,404 for a single room (£25,953 in 2011)

The average older person’s savings pot would only be able to cover residential care for seven months as fees have risen by 5.6% since 2011 – more than twice the inflation rate, research from Prestige Nursing+Care reveals.

2011 vs 2012:

Compared with the findings from last year’s research, the annual cost of a single room in a residential care home has risen by £1,451 and now costs £27,404 on average. This is more than twice average pensioner income of £13,208. The recently announced cap on care fees would not cover accommodation costs so many older people would still be liable for large fees and would see their savings dwindle. The cost of a shared room increased at the slower rate of 3.7% this year and cost an average of £26,137.

In the past year, three regions have broken the £30,000 barrier – London, the South West and the East of England, compared with only London last year.  The South East fell marginally short of this mark, with an average cost of £29,849.


Average Cost of a Single Room in a Care Home, and Pensioner Income

Care Home Region

2011 Annual Cost

2012 Annual Cost

Annual Pensioner Income 2012

Cost vs Income Difference 2012

East of England





East Midlands










North East





North West










South East





South West










West Midlands





Yorkshire and the Humber












Regional Disparity:

The South West overtook London to become the most expensive region for elderly care homes this year. A room there costs £6,292 more per year than in the North East which has the lowest prices. The South West also has the largest disparity between care home costs and average pensioner income at £18,200. This is £5000 per year higher than the national average.

Wales, which already has a fee cap saw the greatest proportional increase. The cost of the average care home in Wales now falls just £46 below than the national average, substantially closer than the £159 difference of 2011. Despite this increase in price, Wales has retained relatively low costs, with only the North East more affordable.

Home care is another alternative for older people to consider – with 10 hours a week costing an average of £7,576 annually – it is roughly 3.5 times cheaper than national average cost of a single care home room.

Jonathan Bruce, Managing Director of Prestige Nursing + Care said:

“The government has announced a cap on care fees of £35,000 which most of us in the industry have been lobbying for for some time. However, accommodation costs, which make up the lion’s share of residential care fees wouldn’t be included in this cap meaning older people are still heavily liable and may need to pay significant amounts of money in later life.”

“For those who are slightly younger, factoring in possible care fees into their savings is a good idea. For older people who may need care in the shorter term, homecare is an option which allows people to maintain their independence for longer while living in their own home and is included in the cap.  However, for those that require residential care immediately, they will unfortunately have to grin and bear these costs.”


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s