Care home costs in Ceredigion, set to rise by nearly seven per cent, will have risen by between 48 and 66 per cent in just four years.

In Ceredigion there are now eight independent care homes (six residential and two nursing) and five local authority-run care homes.

A standard fee is set for older persons’ placements that are commissioned by the council in private residential and nursing care homes within the county, split into four categories: Residential, Residential EMI, Nursing, and Nursing EMI.

In late 2021 the council commissioned an external organisation to undertake an independent review of the fees, as a result of the work undertaken by Laing Buisson, Ceredigion saw the 2022/23 fees increase significantly, and in 2023/24 it applied an inflationary uplift in costs, averaging 8.8 per cent.

In those two years, fees increased by a minimum of 28.4 per cent, and a maximum of 43.8 per cent.

2023 saw Residential rise by £67 to £827, Residential EMI £884 (+£72), Nursing £961 (+£78), and Nursing EMI £961 (+£78), with 2024 seeing rises of: Residential £896 (+£69), Residential EMI £958 (+£74), Nursing and Nursing EMI £1,040 (+£79).

A report before members of Ceredigion’s Cabinet meeting of March 11 saw further rises backed: Residential £957 (+£61), Residential EMI £1,023 (+£65), and Nursing and Nursing EMI £1,111 (+£71).

This means fees have increased, since the 2021 figures, by 48.6 per cent, 49.1 per cent, 66.28 per cent and 56.15 per cent respectively.

The report for members, recommending a 6.8 per cent rise this year, said: “The Chancellor’s announcement in late October 2024 to introduce changes to Employers National Insurance has significant financial implications for all Businesses including Care Providers.

“In addition, the announcement of the latest iteration of the Real Living Wage (rising from £12 to £12.60 per hour) also impacts on Care Providers due to Welsh Government’s national policy of ensuring that all registered Social Care workers in Wales receive at least the Real Living Wage.”

It added: “Despite the fact there is no specific funding forthcoming for the Employers National Insurance impact, the council has prioritised funding within its 25/26 Budget to ensure that the Social Care commissioned sector in Ceredigion is supported as far as possible. It is estimated that the Employer’s NI component for the Social Care commissioned sector alone will cost the council circa £937,000.”

It concluded: “With the backdrop of the council’s WG funding settlement and no current prospect of any funding for the impact of Employers National Insurance on the Social Care commissioned sector, the council has done everything in its power to propose uplifts for 25/26 that are both fair and within the limits of affordability.

“Current intelligence suggests that the percentage increases proposed in Ceredigion are likely to be higher than neighbouring authorities and therefore it is likely that Ceredigion will continue to feature in the top quartile in any all-Wales comparison.”