Paying Privately For A Care Home Is Now The Norm, New Data Reveals
Paying privately for a care home is now the norm, not the exception for families across the UK, with new data suggesting many people are not eligible for public funding, unaware of it, or they are forced to self-fund while waiting for assessments or decisions.
New analysis from, carehome.co.uk shows that 62% of people enquiring about care expect to pay for it themselves, despite the availability of NHS and local authority funding.
The data also reveals a clear regional divide, with nearly three-quarters (73%) of care seekers in South East and South West England self-funding their care, compared with 46% in Scotland, 50% in North East England and 55% in Wales.
Stark regional inequalities in access to NHS CHC
The data highlights stark regional inequalities in access to NHS Continuing Healthcare (NHS CHC) – the only form of care funding that is not means tested and fully covers social care costs for adults with complex health needs.
People in the North are significantly more likely to rely on NHS funding. More than one in ten (11%) care seekers in North East England and 10% in North West England expect NHS CHC to pay for their care. In contrast, just 5% of people in South East, South West and East of England expect to receive this support.
The findings reinforce long-standing concerns that NHS CHC operates as a postcode lottery, with wide variation in eligibility and outcomes depending on location. The findings from carehome.co.uk are in line with research from the Nuffield Trust which also found a North/South divide in eligibility and funding for NHS CHC. While eligibility was higher in the North, this region also received less spending per eligible recipient, according to the research.
In response to the findings Lisa Morgan, head of the nursing care fee recovery team at Hugh James, said;
“These findings are deeply troubling but, sadly, what families experience every day. Too often, people end up paying privately for care because funding is delayed, unclear or never properly explored. Families regularly seek advice exhausted and distressed, having been told there is ‘no funding available’ or left to self-fund for months while they wait for assessments or decisions.
“NHS Continuing Healthcare is meant to fully fund care for people with complex health needs, yet access to it remains highly inconsistent. Many people who may be eligible are not assessed at the right time, are wrongly turned down, or are left in limbo while decisions are reviewed. The regional differences highlighted here mirror what we see in practice, where outcomes can depend more on where someone lives than on their actual needs.
“Even where local authority funding is available, it often falls short of the true cost of care. Families are regularly asked to pay top-up fees unlawfully, without being offered a genuine alternative placement that meets assessed needs within the authority’s budget, as the law requires. What should be the exception has become routine.
“Earlier intervention is critical. Proper assessments before placements are made, transparent decision-making and access to specialist advice from the outset are essential if the financial burden of care is to sit with the public bodies legally responsible for funding it.”
One in five rely on local authority funding
Alongside NHS funding, one in five care seekers (19%) rely on means-tested local authority funding, with the highest proportions seen in Scotland (35%), North East England (25%), and Yorkshire (21%).
Again it is people living in South East England and South West England who are least likely to be in receipt of local authority support.
Public funding often falls short
However, rising care home costs mean public funding often falls short, forcing families to make up the difference. Top up fees come into play when the chosen care home is too expensive for the council to pay in full, with the care seeker paying the difference between the total cost and the local authority funding.
According to carehome.co.uk, 12% are paying top-up fees on top of local authority support. It is people in Wales who are more likely to pay top up fees with 18% doing so, while those in the south of England least likely to pay top up fees.
Sue Learner, editor of carehome.co.uk, said:
“These figures suggest that paying privately has become the norm, not the exception. Families are often making urgent care decisions with limited information, and many don’t realise support may be available until they’ve already committed to significant costs.”
She added: “Care funding in Britain has become fragmented and difficult to navigate. With multiple routes into care – each with different rules, assessments and financial implications, many families are left confused at exactly the time when they need the most clarity.
“With the average cost of a residential care home for self-funders now close to £67,500 a year, this is a major financial decision. People need clear, accessible information much earlier, before they reach a crisis point.”
