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Former Pensions Minister Baroness Ros Altmann said care home owners are charging selffunders a premium to plug a shortfall from local authorities.

Around a third of residents (143,774) were paying for all or some of their care, while the remaining 248,153 were state funded in 2019/20. Official figures suggest people in wealthier areas with higher house prices were more likely to pay for their own care, usually by selling their properties.

Care homes in the most deprived parts of England have a smaller proportion of selffunders – 21.6 percent compared to 53.8 percent in the least deprived areas. Ms Altmann said: “By every yardstick this is a monumental injustice.”

Pete Davies, of the GMB union, said: “Many people are paying far above the rate that a local authority would pay for the same service. Ultimately, they are paying over the odds and often being plunged into debt to prop up a broken system.”

Helen Morrissey, of financial services giant Hargreaves Lansdown, said: “The figures show the sheer scale of the number of people who are paying the astronomical costs of care.

“Finding the money to pay for this over the long term can cause real strain on family finances.

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Those with over £23,350 in savings must pay in full for care.

Last month the Government announced the Health and Social Care Levy with an £86,000 cap on care costs though people must still find money to cover accommodation.

But it does not start until April 2023.

People with assets up to £100,000 will also receive some state help. It is the first time the Office for National Statistics has published figures on self-funders.

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COMMENT BY ROS ALTMANN

These latest figures about care home funding are truly shocking.

Around a third of those in care homes are paying for their care.

But they are paying far more than they should because the other two-thirds are not paying enough to cover the actual costs.

Councils refuse to pay the full costs of care, which has meant care home owners must charge those who pay for themselves an extra premium to subsidise the local authority.

By every yardstick this is a monumental injustice. The figures starkly show the urgent need for wholesale reform of social care.

Cash-strapped councils can’t cover the costs of care.

They have cut and rationed care ever more severely but still cannot afford to fund those without life savings.

This system fails every test of social justice and must be reformed. Now.

• Ros Altmann is the Ex-Pensions Minister

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