Jonathan Bruce, managing director of Prestige Nursing+Care said,
“The cap of £75,000 on care fees announced today looks good on paper, but in practice, it will help only a very small number of people. The cap only applies to care fees and not accommodation fees which make up 51% of the cost of residential care.
“Our research found the average cost of a room in a residential care home is £27,404 per year of which £13,428 is care costs. This means it would take five and a half years for the cap to come into effect. The remaining £13,976 per year represents accommodation costs, and while there is a separate cap for this, at £12,500 it doesn’t cover the majority of the cost. After five and a half years of paying care costs and the majority of accommodation costs, the total amount spend on care would be £145,196.
“However, in the current economic climate, the Government is to be commended for taking a stance on this issue and providing a framework that will allow financial services companies to develop products to service this very real need. Indeed, this move is to be welcomed as it is a step in the right direction, even if it is just the first step and we hope that in the future, the Government will take other measures to deal with this very real problem.”