By Tom Philips at March 12, 2024

UK Care Home Statistics 2024

With an ageing population, there is an increasing need for care homes in the UK.

When it comes to equity release, your equity release plan or loan will continue until either after you pass away or move into a care home for health reasons.

According to Savills [1], there are approximately 144,000 people currently needing access to a home living in the UK right now, meaning that there are simply not enough care homes in the UK to keep up with demand [1].

This is because the UK is forecasted to increase to over 4.5 million 80-year-olds by 2032, increasing by 1.1 million between 2022 and 2032 [1].

In addition to this, the long-term effects of Covid-19 means that individuals living in care homes will now need to receive numerous Covid-19 vaccination boosters to stay immune.

Not only are residents getting vaccinated, but staff are too. In fact, according to the latest statistics carried out by the UK Government, just under 10% of all staff working in care homes, young and old and still getting vaccinated on a regular basis [2].

It’s also important to investigate the statistics surrounding care costs, which have continued to rise over the past few decades.

Below is a more detailed look into the statistics surrounding care homes in the UK, which you might find useful if you are considering moving into a care home or moving a loved one into a care home.

UK Care Home Key Statistics

As discussed above, more people than ever are in need of a care home.

It is estimated that just over 150,000 individuals in the UK are going to need access to a care home over the next 10 years, with the number of over 80-year-olds increasing rapidly throughout the UK in that time [1].

This means that on average, the UK will need an additional 14,400 new beds every year for the next ten years, just to keep up with the demand and pace of the increasing population growth [1].

In 2020, there were only 300 new care homes opened across the UK, which equated to a total of 14,500 new care home beds.

Unfortunately, for anyone living in the UK, more than 50% of all these new beds were based in London or the Southeast of London [1].

Whilst this is great news, this will need to continue if the UK is to keep up with demand. According to Savills [1], there are approximately 30,000 new care homes under development and in the pipeline, predicted to open by 2032.

Again, over 60% of these care homes are predicted to open in the South and surrounding London [1].

There are many reasons why more care homes are opening in the South, compared to the North. The sheer costs of care homes in the UK means that you might end up spending hundreds, if not thousands every month on private care.

There has been a continuous increase in housing wealth in London over the past few decades, meaning that residents living in London are more capable of paying higher care cost, compared to those living in the North with less property wealth and lower wages.

It is clear, more needs to be done across the UK to make care costs more affordable. Below are some statistics on how much care homes cost in the UK.

How Much Do Care Home Costs in the UK?

Having a loved one in a care home could end up costing you hundreds if not thousands each month [3].

In fact, the average weekly cost of a care home in the UK is approximately £928 per week, whilst a nursing home would cost even more, with the average price of a nursing home sitting at £1,025 per week [3].

This means that the average, annual cost of a care home in the UK is currently sitting at a staggering £48,000 a year, which is more than the average salary.

As we know, nursing homes are even more expensive, with the average annual price of a nursing home sitting at £53,000 per year [3].

It is important to remember that there are a number of factors that affect how expensive a care home is. This includes where it is located in the UK, how much support they offer to their residents and the level of care they provide.

For example, some care homes will support around the clock, 24/7 care and support for all residents, whereas others will only offer day to day support with washing, changing and eating.

Likewise, some residential care homes will hire only basic staff with basic care training, whereas others will hire highly trained, specialised nurses to care for their residents.

Likewise, the type of care home you or your loved one opt for will always have a huge impact on how much you pay. Below is a list of different types of care homes, as well as the associated cost of each one.

1. Residential care home fees

The average cost of a residential care home in the UK sits at around £928 per week, amounting to just over £4,000 a month [3].

This is more than the average take home pay for most people living in the UK. Residential care is the most popular type of care in the UK.

With residential care, you or your loved one will receive help with daily tasks. This includes things such as getting up in the morning, washing, dressing, and eating. Nurses will also help administer any medication.

2. Nursing care home fees

Nursing care homes are slightly different to residential care homes, in that they accept residents with complex needs or illnesses.

Usually, there will always be at least one or two qualified nurses with specific qualifications to care for the specific needs of their residents on duty.

All nurses will provide around the clock, 24/7 care to their residents. These do cost significantly more than residential care homes.

3. Dementia specific care home fees

Finally, there are several dementia specific care homes across the UK.

The average cost of a care home specifically for dementia patients currently sits at approximately £1,037 per week, meaning that this type of care would set you back just under £5,000 a month.

This type of care home will provide you or your loved one with around the clock care.

The care home will also be designed for those with dementia, meaning that it might include therapy rooms or equipment. Again, this comes at a higher price.

Unfortunately, unless you have less than £23,250 in the bank, then you will have to pay for the cost of your dementia care yourself [3].

Remember, in the UK you only have to pay for your own care if you have less than a certain amount in your savings or assets. This is explained further below for you.

How much do you need to have in savings before you have to pay for care?

In the UK, how much money you have in savings and in assets will determine what you must pay for when it comes to your care and what you do not need to pay for.

Below is an explanation of how much money you can have in your savings and assets before you must start paying for your own care home fees.

In England, if you have less than £14,250 in savings and assets then you will need to pay for some of your care fees.

If you have more than £23,250 then you will need to pay for all your care fees in later life, including the cost of a residential care home.

If this is the case, then you might want to consider taking out an equity release loan to help pay for private medical care in later life.

What’s Included In Care Home Fees?

Whilst the cost of care homes is significant, it is important to remember that they do include numerous services to either you or your loved one.

Above everything else, it will hopefully provide you with peace of mind that either you or your loved one is being cared for in their old age and time of need.

Usually, fees include personal care, including getting up in the morning, getting dressed, getting washed, eating and taking medication.

You will also get your own, private bedroom and bathroom, with access to shared spaces such as a living room and a dining room which you will share with other residents.

The staff and nurses will also take care of your laundry and other housekeeping for you.

Covid-19 in Care Homes Statistics

Ever since the Covid-19 pandemic, Covid-19 has been a constant worry for those living and working in care homes.

According to the UK Government, in January 2024 just under 10% of all staff in care homes were receiving an autumn booster dose of the Covid-19 vaccine [2].

When it comes to the residents of care homes across the UK, just over 60% of all adults living in care homes had received a flu vaccination between 2023 and 2024 [1].

By the second week of January in 2024, 99.7% of all care homes across the UK were able to accommodate their residents to receive a booster vaccination.

Thankfully, this figure has remained relatively steady since the end of 2022 [2].

Unfortunately, the care sector is struggling significantly with staffing issues, particular after the aftermath of Covid-19 and Brexit.

With infection rates still high in healthcare settings, there is still a small percentage of care home staff who are absent from work due to both direct and indirect Covid-19 related reasons [2].

Care Home Recruitment and Retention Statistics

The care sector has been struggling with both recruitment and retention issues for a number of years now, due to a whole host of reasons.

The care sector has been struggling for the past few decades to find, recruit, train and retain the right kind of staff for the work involved in caring for people in their illness or old age.

There is a range of long-term issues which makes it harder for the care sector to hire enough of the right people.

In fact, almost 10% of all roles across adult social care were vacant between 2022 and 2023 [4]. This means that approximately 152,000 roles were vacant between 2022 and 2023 [4].

Thankfully, recruitment numbers did increase in 2021, due to an increase in international recruitment.

Nevertheless, job vacancies across the care sector are still at an all-time high due to an increase in demand and ageing population.

As previously mentioned, there has been a significant increase in demand when it comes to care homes across the UK, due to several reasons.

With an ageing population comes an increase in demand on the healthcare system, which both the NHS and care sector will have to meet.

Likewise, the care sector is struggling so much due to high staff turnover rates. Turnover rates between 2022 and 2023 sat at 28.3%, which is the equivalent to 390,000 people leaving roles in the care sector in just one year [4].

In addition to this, many individuals who are still currently working in the care sector or who have already left the care sector argue that there are limited opportunities for career growth and progression across the industry, in addition to low pay.

In fact, care worker pay is one of the lowest across the UK economy. There are now many other ways to make more money, so less and less people are willing to work shifts or within the health or care sector.

According to National Careers [5], the average salary of a care worker sits at just £14,000 a year for both living across the UK for working a 35 – 40 hour working week.

This is significantly lower than the national average, which sits at approximately £33,061 according to a study carried out by the Office for National Statistics (ONS) in April 2022 [6].

Taking all of these statistics into consideration, it is no wonder the care sector is struggling now more than ever to find, recruit and retain staff members.

Statistics surrounding issues facing older people across the UK

According to a study carried out by Age UK [7] there are approximately 1.7 million pensioners living in poverty across the UK [7].

As we know, with poverty comes a whole host of potential health issues, including a poor diet, poor living conditions and a lack of access to healthcare when needed.

Ethnic minorities throughout the UK, including Bangladeshi and Pakistani pensioners are also more likely to be living under the poverty line [7].

Due to this and other issues, more than 200,000 pensioners across the UK were readmitted into hospital after being discharged within one month.

This is due to the fact that they were given insufficient care at home or were potentially discharged from hospital before they should have been [7].

Increasing energy bills along with the cost-of-living crisis has meant that a significant number of individuals across the UK, including pensioners are currently living in non-decent housing conditions, which will have an impact on their health.

In fact, 25% of all households across the UK are currently living in houses or flats that would be classified as non-decent, meaning that they would have an impact on health [7].

All of these issues are creating what is now known as a ‘health gap’ across the UK.

Finally, one of the biggest issues facing older people across the UK is the failure of the care system.

According to Age UK [7], approximately 300,000 carers left the care sector in just one year due to a lack of flexible working compared to other industries which may allow people to work from home, work remotely or work flexible hours [7].

As explained above, long hours and a lack of adequate pay means that the care sector is struggling more than ever to hire and retain staff.

Improvements to the care sector

According to the Department of Health and Social Care [8], the UK Government is now investing at least £250 million over the next couple of years into the care system to try to mend some of the issues listed and explained above.

This money will be spent on better recognising social and care workers and on empowering the workforce to deliver better care to the elderly and sick.

This will involve more specialised and personalised care to those in the healthcare and care home environment [8].

Equity Release & Home Improvements

If you are considering moving into a care home because your home is no longer suitable for you to live in due to your care needs, then you might want to consider releasing equity from your home.

Releasing equity from your home involves taking out a tax-free loan, using the cash and equity that has built up inside your home.

You only have to repay the loan once you move into a care home or pass away and are able to spend the money on whatever you want, including home improvements to make your home more suitable for you as you age.

You also do not have to sell your home to repay the loan until after you pass away.

For more information on equity release, contact a member of our team at the Equity Release Warehouse by giving us a call on 0330 058 1579 or by finding us online at www.equityreleasewarehouse.com.