Which? How much should you expect to pay for later life care?
Jun 19, 2025
Mel Kenny, a Chartered Financial Planner at Radcliffe and Newlands Wealth, shares her expertise on later life financial planning. She discusses the alarming rise in care costs and the lack of a cap, highlighting the financial strain on families. The conversation explores regional cost variations, especially between the Northeast and London, and how property values influence funding options. Kenny also emphasizes the importance of proactive planning, discussing strategies like annuities and equity release to ensure financial stability during transitions to care.
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Scrapped Cap and Rising Costs
- The UK government planned an £86,000 lifetime cap on care costs which was scrapped in 2023.
- Rising care costs have outpaced inflation for 20 years due to energy, recruitment, and housing costs.
Start Planning Early With Caution
- Start planning your care finances early, but recognize young people struggle to build savings for care.
- Consider pre-funded insurance plans cautiously; legal and financial advice is important.
Care Costs Vary by Region
- Care home costs vary greatly across the UK, corresponding closely to local house prices.
- Residential care in the Northeast averages £1,076/week versus £1,710/week in London.