Population underestimating the true cost of care

New research by comparison website Which? has revealed that more than half of the UK population are underestimating the cost of care home costs, by an average of £12,000 a year.

Asking people to estimate the cost of a private nursing-home place in their region, Which? says that 55 per cent came up with a figure that fell short of the average cost. In fact, one in ten underestimated the true cost by £737 a week, totalling £39,000 a year, running the risk of serious financial problems in later life, or a lower likelihood of receiving good-quality care.

The research finds that those living in London currently have the most unrealistic expectations, underestimating the cost of a nursing-home place by an average of £540 a week, or £28,101 a year. Conversely, those in the East Midlands were closest to the right figure, with a £74 shortfall compared with the real figure. This still amounts of an annual shortfall of £3,848.

Alex Hayman, Which? managing director of Public Markets, said: “Many people are seriously underestimating the costs of care in later life, meaning they could struggle to find high-quality care for themselves or a loved one, or even face financial difficulties. The care system can be confusing and daunting, and must often be navigated at a time of great stress for older people and their families. That’s why it’s vital that people have access to tools and resources to help them plan for the future.”

Ian Hudspeth, chairman of the LGA’s Community Wellbeing Board, said: “Our recent polling shows half of people have little or no understanding of what social care means. Only 15 per cent of people polled said they are making plans to pay for their care in later life, so it is no wonder people underestimate the cost.

“If we are to truly tackle adult social care, we must aspire to social care having a similar ‘national treasure’ status as the NHS, with similar levels of awareness and understanding about what social care is and why it matters. With low public awareness of social care and people’s preparedness for how to pay for it, it is more important than ever that the government get on and publish their green paper, start a massive campaign to raise awareness of what social care is and don’t duck the big issues on funding. We need bold solutions and we need them now.”