New research from UK Care Guide has found that the average annual cost of a self funded care home now stands at £45,897, with the cost of care homes in cities around the UK rising by an average of 11% in 2023.*

London and Bristol jointly saw the lowest rise at 8%, however both areas also charge more than other parts of the country. The city that has seen the largest rise is Brighton, with annual costs increasing by 15%. The annual cost of a residential care home in Brighton is now over £53,000. Other cities that have seen significant increases include Nottingham and Leeds, both of which had 14% rises.

UK Care Guide surveyed care homes across the largest cities in the UK to see whether the cost-of-living crisis was leading to an increase in care home fees. The survey was in respect of care homes that take on privately funded residents and would typically be regarded as mid to premium-level homes. Each home surveyed had a minimum of 25 beds.

UK Care Guide asked the care homes what it was that was causing the increase in costs. Their responses were as follows:

· A matter of survival: Some care homes had individually increased their costs by over 30% to remain financially viable.

· Staff costs: Homes are struggling to recruit and retain staff. Many pay at the living wage level and are finding that staff are leaving to take what are perceived as less stressful roles in retail and hospitality. Roles in these industries pay at either the same or higher levels. Many homes also warned that care costs are likely to rise again substantially this year, as the living wage will increase by nearly 10% from April 2023.

· Food bills: All homes have seen a significant increase in their food bills. Homes are trying to counter this cost by making mealtimes more efficient and reducing the number of food options available. Some homes have partnered with other local care homes to bulk-buy food to reduce the cost of food per resident.

· Energy costs: This is a significant spend for all care homes. Despite the help provided by the government, energy costs are still substantial. Care homes aim to maintain a temperature of around 20 degrees in communal and resident areas and this is costly.

The full research can be accessed here. – https://ukcareguide.co.uk/rise-in-care-home-costs/

William Jackson of UK Care Guide said: “UK Care Guide wanted to shine a light on the state of the UK care sector through the lens of the cost-of-living crisis. While it is not surprising that the cost of running a residential care home has increased, the real concern is the significant uplift in cost that residents and their families now face, as well as increases they face in the coming years.

“And this won’t abate any time soon. The care sector seems unable to escape from the ongoing issue it has with recruitment, while the increase in living wage from April, and the urgent need to increase staff pay to attract more people to work in care will only compound this.

“The majority of care homes we surveyed warned that they are likely to increase costs again this year so unfortunately, those that might need a care home in the next few years will almost certainly be paying more.

“Over the past year we have seen an increase in people looking at live in care as an alternative to residential care. The personalised care that live in care offers is increasingly becoming an attractive option for people to consider. This is an area to watch in the coming years.”