Regional long term care payments would reflect the variation in UK care costs
Speculation is mounting that the Government may have to pay nursing costs on a regional basis to reflect the higher cost of care in some areas.
According to Chris Ellicott, technical manager at Age Concern Financial Partnerships, a circular issued by the Department of Health (DOH) last month hints it may amend payments to a regional basis in the future. The circular says that while there should be no variation in amounts paid across the country, 'further consideration' will be given in 2002/03 to an allowance for 'recruitment and retention factors'.
He said: 'It is harder to get nurses in the South East and you have to pay them more. The DOH is saying that where it costs more to get a nurse, it will have to reflect that in how much it pays the nursing homes. This enables the DOH to say it costs more to get nurses in the South East than it does anywhere else as it is impossible to pay a nurse the same amount in Surrey as Scarborough.'
However, the DOH said it has no plans to introduce regional fees in the near future.
Currently, the NHS decides how much care an individual needs before placing them into one of three bands. These bands determine how much the Government contributes. The bands are allocated nationally and remain the same regardless of region. The three bands for 2001/02 are £110, £70 and £35 per week .
But with care costing so much more in the South East, the Government may come under pressure to increase its contribution to nursing costs in these areas.
Ellicott said: 'The DOH admits that a nursing home costs twice as much in one part of the country than another, but says nursing costs do not cost any more.'
'In parts of the country where nurses are paid a normal rate, the £70 will cover costs, but in the South East where nurses are paid more, it may not.' This could increase pressure on the Government to ensure the home's owner receives enough to pay the cost of the nurse.
If regional bands were introduced, people requiring long term care (LTC) in expensive areas, the amount of insurance needed would fall, as would the price.
'It would benefit insurance companies as although people would buy smaller policies, we should see more people buying them because they would be more affordable,' Ellicott said.
