Shortfall exposed - 2.3bn-a-year in England’s care home system

Home » News & Knowledge » 2.3bn-a-year shortfall exposed in England’s care home system ‘putting people at risk’.

A figure suspected to be around 2.3bn-a-year has become highlighted as a shortfall in funding for elderly care homes. The standards of living for hundreds of thousands of people residing in care homes could be at risk.

A task undertaken by the government to try uncover the true cost of care highlighted a 20% shortfall in council funding required to look after close to 200,000 residents aged 65 or over in care homes.

Further shortfalls have also been uncovered in funding for carers who assist people in their own homes. This means councils are paying hundreds less per week for each resident’s care than what is considered “the fair cost of care”.

shortfall exposed

In Bracknell Forest, the council budget to look after someone in a care home is about £840 a week. However, £1,380 is the true figure required a 64% shortfall in funding.

Nadra Ahmed, the chair of the National Care Association states:

“As we strive to deliver the best care we can to some of the most vulnerable members of our society, these figures expose the stark reality of the risk that providers are carrying day to day without fair cost for care”.

This shortfall in funding for care directly affects those whose nursing bills are paid in full or part by the council. Care homes with previously ‘good’ ratings have seen a downfall to be labelled as ‘inadequate’. This is placed down to staff shortages, with the independent sector having 1 in 10 posts vacant, which is contributed to due to the average wage of £9.66 an hour for workers.

“The evidence is clear”, stated Martin Green, the chief executive of Care England, which represents independent care home operators. “The care sector is being significantly underfunded by local authorities and requires significant investment by central government”.

Furthermore “people needing care are the ones who suffer” stated Helen Wildbore, the director of the Relatives & Residents Association. “Families are facing a dire choice between a cheap ‘inadequate’ rated home, or a placement miles from relatives”.

The future does not look promising given the government has cancelled or postponed social care reforms, especially Boris Johnson’s 2019 promises to “fix social care once and for all”.

Jeremy Hunt has proposed extra funding of 3.75bn in the Autumn budget. However, experts predict 7bn is required to improve social care and even this is only a ‘starting point’.

2.3bn-a-year shortfall exposed in England’s care home system ‘putting people at risk’.

A figure suspected to be around 2.3bn-a-year has become highlighted as a shortfall in funding for elderly care homes. The standards of living for hundreds of thousands of people residing in care homes could be at risk.

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