Care home fees set to soar 20%

CARE home owners plan to raise fees by up to 20% to meet rising costs caused by Government red tape. A survey of owners found that almost three-quarters would increase their charges over the next two years.

Owners foresee a bleak future for many residents - and are bracing for more closures as many struggle to stay in business.

The results suggest there is no end in sight to the crisis in care for the elderly, which has seen 13,000 beds lost in the last year alone.

Nine in ten private nursing homes expect more businesses in their sector to close over the next two years, according to the survey.

Of the 100 home owners contacted for the survey, 20% said they had considered shutting because of growing financial pressures. If they were to close, the authors of the survey say it would result in 1,140 fewer residential homes across Britain.

The survey says the annual fee for residents in private homes is now more than £20,000.

When asked what the Government should do to prevent more homes closing, 60% said funding should be increased, and 14% thought red tape should be reduced.

The death of 108- year- old Alice Knight forced the issue of care home places into the spotlight two months ago. She starved herself to death after being moved when her care home closed in Norwich. Hers has not been an isolated case. On Saturday, the Daily Mail told how five women forced to leave their care home in Birmingham had died within a month of moving out.

The survey, by Lifetime Care, part of AXA Insurance, indicates the levels of pessimism among other home owners up and down the country. A spokesman said: 'The bottom line for the elderly is that fewer homes will be able to stay afloat and they will be charging higher fees. The situation is exacerbated by the fact that with an ageing population, the need for long-term care is increasing.'

The Mail's Dignity for the Elderly campaign has highlighted the suffering of frail and vulnerable residents caught amid bureaucracy and official complacency.

Research suggests those forced to move from homes where they are comfortable and secure are twice as likely to die within 12 months as those in a stable environment. Care homes have been closing at the rate of 600 a year amid cutbacks in fees paid by councils and additional regulations linked to the introduction of the Care Standards Act.