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| Market
Study Report on Care
Homes |
16 August 2005
The Government today responded
to the Office of Fair Trading (OFT) report on care homes for older
people in the UK. The Government
has welcomed the report which highlights some key areas in which
the care homes market is not serving consumers satisfactorily.
The Government has broadly accepted
OFT’s recommended solutions to the problems identified, but has
decided not to require that all care home payments for people receiving
any council funding be directed through the council as this would
reduce choice for older people and their families. However, where
relatives choose to pay for a home that costs more than the council
will usually pay, the local council contract with the home should
show the full costs of accommodation (not just what the council’s
paying) so that there is no confusion about who is paying for what.
The Department of Health is responsible for policy on care homes,
and they will take the lead in implementation of the response.
  Government response
(6 pages).
Background
On 18 May 2005, the OFT published
a report on the market for care homes for older people in the UK.
This study followed an informal ‘supercomplaint’ from the
Consumers’ Association.
The report made the following recommendations
for changes in the law:
- to require care homes to provide
full breakdowns of fees in writing to residents before they decide
to move in;
- to require local authorities to
contract and pay for the full costs of accommodation, including
any op-up fees, and recover any contributions from residents or
third parties;
- to require care home regulators
to produce guidance on redress avenues and make this available
via care homes.
Government is committed to responding
to all market study reports with regulatory recommendations within
90 days.As policy on care
homes is a devolved matter, the Scottish Executive, Welsh Assembly
Government and Department of Health, Social Services and Public Safety
in Northern Ireland have made their own responses.
Scottish Executive
Welsh Assembly Government
DHSSPS Northern Ireland
The
Commission for Social Care Inspection has also
responded
Market Study on care homes (link to OFT website)
Joint Press Notice
DTI Market Study information
page
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