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Care home costs outstrip average state pension by 400% – full list of cheapest regions | Personal Finance | Finance
Care home costs are becoming increasingly unaffordable, with fees now reaching a staggering 408 percent higher than the average state pension, new research suggests.
According to the study by Oak Tree Mobility, care home costs are now averaging £1,036 per week or £53,832 per year.
However, this average masks the stark differences across regions and care types. In the UK, Scotland is currently the most expensive country for care home costs, averaging £1,286 per week and £66,863 per year.
Meanwhile, costs in Northern Ireland are significantly less, averaging £792 per week and £41,184 per year.
When comparing the average weekly care home cost of £1,036 against the average UK state pensioner income – about £12,500 a year for a single pensioner and £26,900 for a couple – the average pensioner is short over £41,332 per year.
This amount would only cover approximately 10 weeks of care home fees, underscoring the increasingly challenging situation many are facing when considering care home services in their retirement planning. Here’s where each country and region fare, according to Oak Tree Mobility’s research.
Most expensive country in UK for care homes
Scotland ranks as the most expensive country in the UK for care home costs, with an average of £1,286 per week, but Edinburgh, as the capital city, sees the highest costs overall. Care in Edinburgh averages £2,200.00 per week, reflecting the premium for care home services in urban and affluent areas.
The most affordable country for care homes in the UK is Northern Ireland, with an average cost of £791.98 per week. County Down, despite being the most expensive within Northern Ireland, offers the cheapest care home in this area at £623.00 per week.
Here are the most expensive countries in the UK for care homes, as per Oak Mobility’s research:
- Scotland: Averaging £1,286 a week and £66,863 a year
- England: Averaging £1,198 a week and £62,156 a year
- Channel Islands: Averaging £1,035 a week and £53,842 a year
- Wales: Averaging £868 a week and £45,115 a year
- Northern Ireland: Averaging £792 a week and £41,184 a year.
10 cheapest regions for care homes in the UK
While Northern Ireland is the cheapest country for care homes, the cheapest overall region was Torfaen in Wales, costing £621 per week or £32,305 per year. Eight of the cheapest locations for care homes can be found in Wales.
- Torfaen: Averaging £621 a week and £32,305 a year
- Denbighshire: Averaging £651 a week and £33,828 a year
- Ceredigion: Averaging £652 a week and £33,887 a year
- Isle of Anglesey (Ynys Mon): Averaging £679 a week and £35,308 a year
- Gwynedd: Averaging £700 a week and £36,424 a year
- Neath – Port Talbot: Averaging £709 a week and £36,868 a year
- Conwy: Averaging £732 a week and £38,050 a year
- Flintshire: Averaging £751 a week and £39,043 a year
- County Antrim: Averaging £791 a week and £41,125 a year
- County Armagh: Averaging £800 a week and £41,600 a year.
In England, if a person has over £23,250 in savings, they must pay the full fee for their stay in the care home (known as self-funding).
If someone has between £14,250 and £23,250, they must contribute from income included in the means test, such as pensions, plus an assumed, or ‘tariff’ income based on their capital between £14,250 and £23,250. The council will then pay the remaining cost.
If a person has less than £14,250, they no longer have to pay a ‘tariff’ income based on their capital, but they must continue paying from income included in the means test. The council pay the remaining cost.
Figures vary by country in the UK, for example, a person can have up to £50,000 in assets in Wales without needing to self-fund, so it’s best people check their country’s respective policies.
But, there is support available for those who need it, Oak Tree Mobility’s Verity Kick said.
She explained: “Amidst the rising costs of care homes in the UK, retirees and their families need to understand the support available to them.
“With weekly fees averaging over £1,100, many fear the financial strain of long-term care.
However, the Government has recognised this challenge and is implementing reforms to alleviate the burden.
Ms Kick said: “From October 2023, an £86,000 cap on personal care costs will protect retirees from unlimited expenses. Additionally, more generous asset thresholds mean that individuals with assets under £100,000 will receive financial assistance from their local authority, ensuring that care is more accessible for all.
“It’s important to engage with local social services to navigate these options, as the support can significantly reduce the impact of care home fees on retirement savings.”
Mumbai:
The Indian equity benchmark indices opened higher on Friday amid positive global cues, as buying was seen in the IT, pharma and auto sectors in the early trade.
At around 9.27 am, Sensex was trading 265.3 points or 0.33 per cent up at 80,066.81 while the Nifty added 89.85 points or 0.37 per cent at 24,336.55.
Nifty Bank was down 222.85 points or 0.40 per cent at 54,978.55. The Nifty Midcap 100 index was trading at 54,980.80 after increasing 10.95 points or 0.02 per cent. Nifty Smallcap 100 index was at 16,903.30 after declining 60.20 points or 0.35 per cent.
According to market watchers, “after a positive opening, Nifty can find support at 24,200 followed by 24,100 and 24,000. On the higher side, 24,500 can be an immediate resistance, followed by 24,600 and 24,700.
“The charts of Bank Nifty indicate that it may get support at 55,000 followed by 54,700 and 54,500. If the index advances further, 55,500 would be the initial key resistance, followed by 55,800 and 56,200,” said Hardik Matalia, Derivative Analyst of Choice Broking.
Meanwhile, in the Sensex pack, TCS, Tata Steel, Maruti Suzuki, Eternal, ICICI Bank, SBI, HDFC Bank, Infosys, M&M and Tata Motors were the top gainers. Whereas, Axis Bank, Tech Mahindra, Nestle India and IndusInd Bank were the top losers.
In the last trading session, Dow Jones in the US added 1.23 per cent to close at 40,093.40. The S&P 500 climbed 2.03 per cent to 5,484.77 and the Nasdaq added 2.74 per cent to close at 17,166.04.
In the Asian markets, Jakarta, Bangkok, Seoul, Hong Kong, China and Japan were trading in green.
According to analysts, US markets extended their rally on Thursday as investors snapped up hard-hit technology stocks, helping boost the S&P 500 out of correction territory.
The foreign institutional investors (FIIs) bought equities worth Rs 8,250.53 crore on April 24. However, domestic institutional investors (DIIs) sold equities of Rs 534.54 crore on the same day.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Mumbai:
Indian equity markets are trading in the red as tensions soar between India and Pakistan over the Pahalgam terror attack in Kashmir. Sensex, the 30-share BSE benchmark, has crashed over 1,000 points and is now trading below the 79,000-mark. Nifty, the NSE index of 50 shares, fell below 24,000 points.
The markets went up in early trade, driven by a global rally and fund inflows, but the momentum got lost thereafter, and it gave up the initial gains.
The markets are also upset by unimpressive March quarter earnings by Axis Bank, the third-largest private sector bank of the country. The bank’s shares have fallen 4.65% after reporting a decline in quarterly profit from Rs 7,130 crore in the year-ago period to Rs 7,117 crore.
Besides Axis Bank, major laggards include Bajaj Finance, Bajaj Finserv, Tata Motors, and Tech Mahindra. On the gaining side are TCS, Infosys, Reliance, HCL Tech, HDFC Bank, and ICICI Bank.
At least 26 civilians were massacred by terrorists in a tourist hotspot known as ‘Mini Switzerland’, leading to both countries pulling out their diplomatic staff and suspending visas issued to the other nation’s citizens. (Follow live updates here)
The latest flare-up at the Line of Control was speculative firing by Pakistani troops, which is being seen as an attempt to provoke the Indian side. Indian troops retaliated effectively against the firing from multiple Pakistani posts.
As Indian equities braced for the impact, global equities, including the Asian markets, were charting in the positive territory. South Korea’s Kospi index, Tokyo’s Nikkei 225, Hong Kong’s Hang Seng, and Shanghai SSE Composite were all in green.
Similar trends were seen in US equities, too. Last evening, Nasdaq Composite closed 2.74 per cent higher. S&P 500 jumped over 2 per cent and Dow Jones Industrial Average surged 1.23 per cent.
Mumbai:
Equity benchmark indices Sensex and Nifty declined in early trade on Thursday amid profit-taking after a seven-day rally and muted trend in Asian markets.
The 30-share BSE benchmark declined 242.01 points to 79,874.48 in early trade. The NSE Nifty went down by 72.3 points to 24,256.65.
In the past seven trading days, the BSE benchmark gauge zoomed 6,269.34 points or 8.48 per cent and the Nifty jumped 1,929.8 points or 8.61 per cent.
From the Sensex firms, Eternal, Bharti Airtel, ICICI Bank, Mahindra & Mahindra, HCL Technologies, Reliance Industries, and HDFC Bank were among the laggards.
IndusInd Bank, Tech Mahindra, Nestle, Bajaj Finance, Axis Bank, and Tata Motors were among the gainers.
In Asian markets, South Korea’s Kospi index, Shanghai SSE Composite, and Hong Kong’s Hang Seng were trading lower while Tokyo’s Nikkei 225 quoted in the positive territory.
US markets ended sharply higher on Wednesday. Nasdaq Composite jumped 2.50 per cent, S&P 500 surged 1.67 per cent and Dow Jones Industrial Average climbed 1.07 per cent.
Global oil benchmark Brent crude climbed 0.12 per cent to USD 66.20 a barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 3,332.93 crore on Wednesday, according to exchange data.
The BSE benchmark jumped 520.90 points or 0.65 per cent to settle at 80,116.49, the highest closing level since December 18, on Wednesday. The Nifty rallied 161.70 points or 0.67 per cent to 24,328.95.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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