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Offer of £80m on care home fees

18/02/2003

The Scottish Executive and the Convention of Scottish Local Authorities (COSLA) announced today that they have made an offer of almost £80 million to the independent care home sector to support increases in care home fees.

The offer is aimed at implementing the Executive's and COSLA's commitment to meet the recommendations of the National Review Group, set up in September 2001 to look at fee levels in the independent sector.

It will provide for a one per cent real terms increase a year to the fees recommended by the expert review group. It will also mean that since 2001 average fees in homes without nursing care will have risen from £260 a week to £346 in 2003 - up £86 or 33 per cent, or in homes with nursing care from £336 to £406 - an increase of £70 or nearly 21 per cent.

Today's proposals mean that since July 2001, more than £130 million of additional public funding has been provided/offered to the care home sector.

The offer has been accepted by the two principal voluntary sector providers, the Church of Scotland and the Salvation Army.

In a joint statement Deputy Health Minister Frank McAveety and COSLA President Pat Watters said:

"We warmly welcome the decision by the Church of Scotland and the Salvation Army to accept our joint offer but are disappointed that all providers have not been able to sign up at this time.

"This is a good deal offering a record increase for care homes and reflects our commitment to stand by the recommendations of the National Review Group and make an offer above the rate of inflation to the independent care sector.

"We hope that the private sector care home providers recognise the substantial level of funding provided by the Executive and local government to bring about a stable future to the care home sector and a choice of good quality care home services for Scotland's older people. We would urge the private sector to fall into line with the other care providers. "This offer is another example of local and central government's commitment to Scotland's older people. Taking it alongside the investment in free personal and nursing care, we are offering unprecedented resources aimed at ensuring our older people receive appropriate care, dignity and security in old age."

Page updated: Wednesday, July 21, 2004