Self-funded care home residents are charged 43pc more than those funded by their local council, according to a report released today.
Analysis by Just Group, the retirement specialists, found that care home residents who front their own fees are charged an average of £12,532 per year more than their council-funded counterparts – typically paying £44,252 a year compared to £31,270.
Stephen Lowe, of Just Group, said: “These figures start to explain why people think care fees are unfair when those footing the bill are charged many thousands of pounds a year more than another person who could be in the same home.”
The gap between self-funded and local authority-funded residents has widened dramatically since 2005, according to a report by the Competition and Market Authority (CMA), the watchdog.
Nine in 10 residential homes now charge self-funders more, compared to only 20pc fourteen years ago. The same report found that the rise in fees for self-funders was due to the amount paid by local authorities not truly covering the costs to the care home.
This means residents paying their own way are effectively used to mitigate the loss to the care home’s finances.