Question to the Department of Health and Social Care:

To ask Her Majesty’s Government what assessment they have made of the Age UK report on self-funders in care homes published on 20 October showing that self-funded care home patients are in effect subsidising local authority funded patients.

Care and support is arranged on an open market where prices and fee rates are negotiated locally by commissioners for state funded clients, whilst individuals and their families do so for those who self-fund. The Government has no say in these individual negotiations.

Under the Care Act, councils are under a duty to promote their overall local provider market to ensure it remains sustainable and delivers high-quality services for all local people. Prices and fee rates paid by commissioners to provider organisations must reflect these new duties.

The Department published the Care and Support statutory guidance setting out how councils should meet these new duties when commissioning, including the consideration of the actual costs of care and support when negotiating fee levels. This guidance is an online-only resource, subject to updates.

The Department is aware of the Age UK report Behind the headlines: ‘stuck in the middle’ – self-funders in care homes. There are many reasons why individuals who self-fund may pay more than local authorities, including premium accommodation and services, and discounts that may be available to authorities for bulk purchasing and lower transaction costs.

The Government has no plans to ask the competition authorities or the Care Quality Commission to review the Age UK report, though we maintain a continuing dialogue across government and with the sector to encourage good practice and fairness to consumers.