Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Economy

Northern England Bears Brunt of Council Care Fee Deficits, LaingBuisson Reveals

by
November 29, 2024
in Economy, Investing
0
Northern England Bears Brunt of Council Care Fee Deficits, LaingBuisson Reveals
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

Last Updated on:

The thirteenth edition of LaingBuisson’s Care Cost Benchmarks (CCB), detailing financial data for 2024/25, has been published. This extensively refined model, developed over 20 years, remains a critical reference point for care home operators and commissioners in determining the ‘Fair Cost’ of sustainable care for older individuals, approximately half of whom depend on council-funded support.

In its final term, the Conservative government acknowledged that austerity measures had caused significant underfunding of council-paid care fees. The newest CCB edition provides a detailed analysis of the financial position of all 151 English councils responsible for adult social care, examining:

The ‘Fair Costs’ for delivering nursing and residential care in 2024/25
Reported average fees paid by councils in the opening months of 2024/25
The gap between council payments and the actual costs incurred by operators (both deficits and surpluses)

Fee shortfalls are most prominent in residential care. Of the 151 councils reporting data, 107 pay below the full cost required, whereas 45 councils confirm their fees meet or exceed operators’ costs.

For nursing care, councils are more evenly divided, with 73 underpaying and 78 meeting or exceeding costs. However, the reliability of reported nursing care fees varies across councils, according to the CCB.

On average, LaingBuisson calculates a £223 million shortfall in council funding for care homes serving older adults in England for 2024/25.

The northern regions of England experience the most acute shortfalls. Among 51 councils in the North East, North West, and Yorkshire & the Humber, 35 fail to meet the ‘Fair Cost’ for nursing care, and 43 fall short for residential care.

Shortfalls vary from minor weekly discrepancies to several hundred pounds.

Looking to 2025/26, the CCB forecasts a challenging financial climate. Councils will face difficulties funding the necessary fee increases—7% for nursing care and 8% for residential care—to sustain care home viability. These increases are driven by two key factors:

A 6.7% rise in the National Living Wage, from £11.44 to £12.21 per hour, effective 1 April 2025
An increase in Employers’ National Insurance from 13.8% to 15%, alongside a threshold reduction to £96 per week, as outlined in the Labour government’s October 2024 budget. This will affect part-time workers previously exempt from Employers’ NI.

These changes are set to drive care home costs up by 7%–8%, despite general inflation stabilising near 2% as projected by the Bank of England.

Interestingly, Oldham Council in the North West leads with the highest reported fees for nursing care at £1,369 per week, including the NHS Free Nursing Care subsidy. Other high-paying councils include Kirklees, Trafford, and South Tyneside, all exceeding £1,300 per week. At the lower end, North East Lincolnshire reports £893 per week, followed by Blackpool, Halton, and Knowsley, all below £1,000.

For residential care, Hounslow in London reports the highest average fees at £1,348 per week, followed by Wandsworth, Richmond Upon Thames, and Hampshire, all over £1,200. Meanwhile, Halton records the lowest fee at £615 per week, with several councils, including Knowsley and Wolverhampton, reporting averages under £700.

A detailed appendix accompanies the report, listing council-paid fees against full care home costs, including allowances for profit and capital returns.

ShareTweetPin

Related Posts

Tech 5: OpenAI/Microsoft Talks Get Tense, SoftBank Floats Arizona Robotics Hub
Investing

Tech 5: OpenAI/Microsoft Talks Get Tense, SoftBank Floats Arizona Robotics Hub

June 22, 2025
Editor’s Picks: Silver Price Hits 13 Year High, Gold Takes a Breather
Investing

Editor’s Picks: Silver Price Hits 13 Year High, Gold Takes a Breather

June 22, 2025
Crypto Market Recap: Bitcoin Price Stalls as Fed Holds Rates Steady, Circle Shares Jump
Investing

Crypto Market Recap: Bitcoin Price Stalls as Fed Holds Rates Steady, Circle Shares Jump

June 21, 2025
Top 5 Canadian Mining Stocks This Week: Royalties Inc. Jumps 183 Percent on Legal Win
Investing

Top 5 Canadian Mining Stocks This Week: Royalties Inc. Jumps 183 Percent on Legal Win

June 21, 2025
Critical Metals Secures US$120 Million Loan LOI for Tanbreez Rare Earths Project
Investing

Critical Metals Secures US$120 Million Loan LOI for Tanbreez Rare Earths Project

June 20, 2025
Mali Court Seizes Control of Barrick Gold Mine Amid Escalating Dispute
Investing

Mali Court Seizes Control of Barrick Gold Mine Amid Escalating Dispute

June 20, 2025
Next Post
Pioneer anchors Platinum Year milestone to its enduring culture and values

Pioneer anchors Platinum Year milestone to its enduring culture and values

Recommended

Stories of angst, voices of hope

Stories of angst, voices of hope

September 23, 2024
Three major wins for Filinvest Land at the Dot Property Philippines Awards 2024

Three major wins for Filinvest Land at the Dot Property Philippines Awards 2024

September 16, 2024
DA expects lower palay output this year due to bad weather

DA expects lower palay output this year due to bad weather

November 4, 2024
Entertainment News (10/01/24)

Entertainment News (10/01/24)

September 30, 2024
How Lanson Place in Pasay benefits from strategic location

How Lanson Place in Pasay benefits from strategic location

October 6, 2024
Blockchain can shield companies from cyberattacks, tech outages

Blockchain can shield companies from cyberattacks, tech outages

September 11, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Thank you

    Copyright © 2025 investdailypro.com | All Rights Reserved