If you or an elderly relative are moving into residential care, taking advice can help prevent surprises over costs or contract terms
The media is awash with stories about how much things cost: weddings, the cost of raising children, going to university. Yet one life-stage can make an even greater dent in your family’s finances, but receives much less attention: the cost of residential care in later life.
The average cost of care in the UK was over £32,000 a year in 2017/18 and it is rising by more than the rate of inflation.
We tell you this not to frighten you, but because the cost of care is relatively poorly understood. If you or a relative are approaching this stage of life, it’s a good idea to get advice and know the pitfalls with care home costs.
One partial misconception is that local authorities will pay for care. Yes, they do pay when your savings fall below a certain amount, but care home fees are often higher than the maximum amount they will pay. This means there may be a shortfall to fund.
Another pitfall is contract terms. Contracts are often couched in vague or unfamiliar terms, and it may not be clear to people that they face extra charges or price hikes beyond what they budgeted for.
Under pressure to find a home, they may accept terms that are disadvantageous or unclear.
What can you do?
Given the costs of care, it’s worthwhile taking advice when you or a relative are looking at going into care. A solicitor can look at the contract and tell you if:
• the providers are meeting their own obligations in terms of the Unfair Contract Terms Act and other legislation and codes of practice
• any of the contract terms are excessive, or could expose you to problems or costs in the future
• your local authority has obligations to contribute financially.
Your lawyer can liaise on your behalf with providers or the local authority to address your concerns.
All this is worthwhile because a misunderstood paragraph in a contract could lead to unforeseen costs running into thousands over time. Equally, if you’ve already been paying top-up costs that weren’t made clear, a solicitor can tell you what you can do.
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