Councils paying £24,000 more a year per pensioner in nursing costs as Lib Dems call on govt to reverse “foolish” NICs hike

EMBARGO: Immediate Release

Councils are having to pay a staggering £53,352 a year in nursing costs per pensioner, up more than £24,000 on 2015/16’s level of £29,276 a year - an 82% jump - House of Commons Library research commissioned by the Liberal Democrats has revealed.

The Party has called on the government to reverse their “self-defeating” and “foolish” hike in national insurance on health and care providers or risk seeing these costs spiral further as the burden of the tax rise is passed onto council budgets and those in care.

The figures show that in 2015/16 nursing care costs paid by councils per pensioner sat at £563 a week. As of 2023/24 that number stood at £1,026 a week, an 82% increase in cost. 

The rise in nursing costs for councils has also outstripped inflation by 7%, meaning that if the cost had been in line with inflation since 2015/16 it would be £3,328 a year less than it is now per pensioner.

In 2023/24, the cost of nursing care for councils per pensioner jumped by £116 a week or 13% compared to the year before; when looking from 2021/22 it rose by 27%, more than £200 a week.

The Liberal Democrats said that the figures “laid bare” just how desperate the situation in social care is and said it risked seeing costs for those in need of care spiral and the strain placed on council budgets made ever greater. 

The Party has also previously called for the government’s social care review to be completed within the year, not three years as is currently proposed. 

Liberal Democrat Treasury spokesperson, Daisy Cooper MP said:

“Our social care sector is on the brink of collapse and council budgets are stretched to breaking point after years of the previous Conservative government’s shameful neglect. The result is that far too many who are simply not getting their care needs met. 

“That’s why it has been so disappointing to see the new government ram through this self-defeating jobs tax that makes the situation for care providers even worse.

“Councils providing care are already warning that their budgets are in turmoil and this tax rise will only make it more expensive, stretching their finances even further. 

“Instead of heeding these warnings, the Chancellor has pushed ahead with this foolish tax hike and Ministers risk repeating the Conservatives' mistakes of kicking the can down the road on desperately needed social care reform. 

“The government needs to see sense and scrap this jobs tax for care providers before it is too late for many care homes and ultimately patients and their loved ones.”

ENDS

Notes to Editors:

First reported by the Express here.

Previous Liberal Democrat calls to complete social care review within a year here.

The research by the House of Commons Library can be found here.

The attached excel file contains the latest available data from 2015/16 to 2023/24 on the average weekly costs for those aged 65 and over accessing long-term social care support in nursing care, residential care and residential and nursing care.

The data is taken from NHS Digital’s Adult Social Care Activity and Finance data series and reflects the prices local authorities pay for care home provision.

The actual prices are shown alongside an estimate of the price if increased in line with annual CPI inflation and the difference between the two is calculated. The table also shows the percentage increase in the actual fees each year.