The Care Home Rip-Off: How Self-Funders Are Subsidising Care Home Costs

In the UK, thousands of elderly individuals are unknowingly paying excessive care home fees because they are self-funding their care. The shocking truth? Self-funders are subsidising care home costs for those whose fees are covered by local councils. If you’re paying for your own care or have a loved one in a care home, you could be paying 30% to 50% more than someone in the same home receiving government funding. This is an outrageous and deeply unfair system that punishes those who have worked hard all their lives.

Why Are Self-Funders Subsidising Care Home Costs?

Care homes in the UK operate under a two-tier pricing system. Local authorities negotiate low rates when they fund a resident’s care, but these rates are often well below the actual cost of care. To make up the shortfall, care homes charge self-funding residents much higher fees, effectively forcing them to subsidise government-funded residents.

The disparity in fees is staggering:

Average council-paid care home rate: £600–£800 per week
Average self-funding rate: £1,200 per week (sometimes as high as £1,600 per week)
Difference: Self-funders pay at least 30% more, often double

A report by LaingBuisson, an industry research group, found that self-funding residents are paying an extra £1 billion per year to prop up care homes that are underfunded by councils.

The Cost of Self-Funded Care: A National Scandal

The unfairness of this system cannot be overstated. Imagine being told you have to pay double for the same service as someone else—simply because you own a home or have savings. This is exactly what’s happening in UK care homes today.

Some key findings highlight the scale of the issue:

A self-funder in a care home for five years could pay £150,000–£200,000 more than a council-funded resident.
Many care homes rely on self-funders to stay afloat, meaning the elderly are effectively being used as cash cows.
Some families run out of money, forcing them to rely on local authority funding later—but only after they have lost their home and savings.

Meanwhile, local councils refuse to disclose the exact rates they pay for care home places, making it nearly impossible for families to negotiate fairer fees.

How Can You Protect Your Savings from Care Fees?

The good news? There are legal ways to avoid being unfairly overcharged. Estate planning experts recommend:

Setting up a trust to protect your home and savings from being swallowed by care fees.
Changing property ownership to tenants in common, which can help ensure that at least half of your home remains protected.
Seeking professional estate planning advice to explore legal ways to limit care costs and ensure you don’t end up funding others.

The system is rigged against self-funders, and without the right knowledge, you could lose everything you’ve worked for.

Take Action: Don’t Be Forced to Pay for Others

This system is blatantly unfair, but many families only realise it when it’s too late. If you want to protect your assets and avoid falling victim to the self-funders subsidising care home costs scandal, get informed now.

Get Free Advice on Protecting Your Estate

Don’t let your family’s hard-earned wealth be unfairly drained. Book a free estate planning consultation today and learn how to legally protect your assets from care fees.

Sources:

LaingBuisson Care Market Report: www.laingbuisson.com
Age UK Care Fees Research: www.ageuk.org.uk
Fairer Care Funding Campaign: www.fairercarefunding.org

The government has delayed reform time and time again. Until the system is changed, self-funders will continue being exploited. Take control before it’s too late.