Continuing Rises in Care fees... Why?
Why Care Fees Will Continue to Soar for Most of Us
A Daily Telegraph article published in July 2015 highlighted the soaring costs of care. At this time, it found the average bill for a single room in a care home was £29,389 per year. Rises in care home costs are outstripping increases in pensioner’s incomes for the first time in three years, with average fees of almost £34,000 a year in some regions.
New figures show that typical bills are now twice income levels, with increases in fees outstripping rises in pension and savings. The average bill for a single room in a care home is now £29,389 – a rise of £723 in a year – while incomes stand at £14,300. The greatest price rise came in the East of England, which has become the most expensive region for care homes, narrowly overtaking the South East.
See the full article here: http://www.telegraph.co.uk/news/health/news/11774001/Average-care-home-fees-reach-34000-in-some-areas.html
National living wage
The National Living Wage coming into effect meaning a significant pay rise for Britain’s lowest paid workers this year and every year until 2020 – further adding to the bills for care.
The Priory Nursing Home in Tetbury closed its doors earlier this month, citing ever-increasing costs as being to blame.
“FURIOUS relatives have branded the decision to close a Tetbury care home as “utterly cynical”.Not-for-profit Somerset Care gathered interested parties on Tuesday to tell them the Priory would be closing on March 31. See full article click here
Chairman of Somerset care, a non-profit company running care homes across the South of England, said ‘we will have to ask our private residents to pay more ... but I really don’t think that is fair’.
A BBC news article published 29th March describes how the new National Living Wage could bring already stretched care services to ‘breaking point’ .
See http://www.bbc.co.uk/news/uk-politics-35915932. If residential settings are seeing costs increase significantly, who is going to pay for that?
How can I protect myself and my assets to ensure my family inherits?
Anybody requiring care, currently, is ‘needs’ tested by their Local Authority and then means tested. If you have assets over £23,250 including the value of your home, you will be required to pay for your care although your home is safe so long as a partner or dependent relative lives there.
It is essential when estate planning to consider the possibility of care being required in the future so that action can be taken to ensure no more will be taken from your estate to pay for care fees than absolutely necessary. Taking professional advice from specialists working solely in this area is required to safeguard your family’s inheritance. It is also imperative that you take action early – waiting until your health deteriorates and care is on the horizon substantially reduces your options. Should you lose mental capacity it becomes too late to act and nothing can be done to protect what you have worked so hard for.
Speak to one of our Consultants today
As every situation is different, at Assured Wills Southampton we have fully trained consultants visiting clients in the comfort and privacy of their own home. Your local Consultant will take the time to fully understand your situation before making any recommendations as to how best to meet your needs. With Assured Wills Southampton you can be ‘assured’ of a highly professional and personalised service from start to finish incorporating the best advice relevant to your circumstances.
To gain a better understanding of your areas of vulnerability and what you can do to protect yourself and your loved ones, call us today to put your mind at rest on 01794 501 036