Watchdog launches probe into 'wholly unfair' fees
Care homes across the country are being probed for ‘wholly unfair’ fees charged to families after loved ones have died.
The Competition and Markets Authority is investigating the practice along with a host of other issues reported across the sector.
Bereaved relatives contacted the CMA to inform them of their horror at being ‘charged fees for extended periods after a resident has died and their room has been emptied’.
Around 430,000 elderly people are in care and nursing homes in the UK STOCK PHOTO
The state watchdog included the issue in its list of ‘information provided by individuals’ after an appeal for input from the public.
It is established practice in many care homes to charge for a week following the death of a resident so that relatives have time to clear out belongings and do not feel rushed.
But anecdotal reports that such fees have been used for ‘extended periods’ have been met with condemnation.
Caroline Abrahams, director of Age UK told the Guardian: ‘When an older person dies, and their room becomes vacant and therefore available for someone else to occupy, it seems wholly unfair to expect their family to have to continue to pay fees.’
One wife of a home resident told the CMA of the incredible difficulties in choosing a care home for a loved one.
‘It is hard to see how real competition could exist in the care home sector as currently constituted’, she wrote.
‘Far too many of them are existing on a financial knife-edge, even the best ones.
‘The consumer has no idea whether they are choosing a provider who is about to go bust or who is in it for the long-term.’
She added: ‘People are very much at the mercy of availability, location and affordability. The demands on relatives are substantial – they have not got rid of their responsibilities, but developed other, different ones.
‘I firmly believe that this dishonesty in charging must be dealt with. There should be a lifetime cap on fees for the individual. Their income tax could be reduced during the years a person was in care.’
But Charles Taylor, who runs care homes in Oxfordshire, explained to the CMA the rationale behind charging families after the death of a resident.
He said: ‘We charge families for a one-week period post the death of a resident. Family members are suffering from a bereavement at this time and often take this week to remove personal items from an individuals’ room, and to say goodbye to the person in the place of their passing.
‘The alternative is for the care home to fill the bed the day following the death and to pack up the individual’s belongings to be collected, which does not allow the family the time to grieve properly.’
Other issues mentioned by the CMA included a ‘lack of information about the prices charged by care home providers’ and a ‘lack of explanation about how fee increases are calculated and justified’.
Around 430,000 elderly people are in care and nursing homes in the UK.
Previous research from Citizens Advice found that one in five families had been hit by a shock bill, including £2,000 ‘management’ fees.
The CMA appealed for more residents and their families to come forward with their experiences STOCK PHOTO
Some were given as little as a week’s notice about charges going up – and were forced to pay deposits to secure a place for which they were offered no protection. Separate research by Age UK found some homes were charging families by up to £10,000 a year more for places than they were charging councils.
Local authorities were charged between £421 and £624 for each place a week – while those funding themselves had to cough up between £603 and £867.
In a statement, the CMA appealed for more residents and their families to come forward with their experiences.
It said: ‘We are very keen to hear from care home residents and their relatives who have experienced issues such as unexplained or “hidden” charges, unexpected fee increases or occasions when they feel that complaints have not been handled fairly.
‘As part of our review we are looking at whether care homes are complying with consumer law so we’re encouraging people to come forward with any evidence of unfair terms or practices.’
The final report is expected to be published in November.