OFT report recommends information one-stop-shop, better access to complaints procedures and fairer contracts

86/05    18 May 2005

A one-stop-shop for information on care home provision is needed to help older people choose the right home according to a major in-depth OFT study published today. This should be supported by better access to complaints procedures, greater price transparency and fairer contract terms for care home residents.

Download the report Care homes for older people in the UK (pdf 1,160 kb)

The OFT's recommendations follow a ten-month study, initiated by a super-complaint from Which? (see note 2), into the £8 billion market.  Over 400,000 older people currently receive residential and nursing care in the UK's 15,700 private, voluntary and local authority care homes.

Choosing a care home is a major life decision, and can involve a very large financial commitment. Once in a home, few older people move to another, even if they are dissatisfied, so it is important that they are in a position to make a good choice first time.

When older people move into a home they are often in poor physical or mental health, and are vulnerable and distressed. Around half of those moving into a home do so after a period of hospitalisation; often the move has to be arranged quickly. All this makes the process difficult both for the older person and their family/representatives.

Many of these difficulties are inevitable but some are not: the OFT study found significant problems in obtaining information about moving into a home and about complaints systems, as well as issues surrounding contract terms. Practical steps can be taken to solve these problems.

There are significant gaps in the information provided to people at almost every stage of choosing a care home.  Information sources are varied: older people and their families or representatives may find it hard to know where to go for relevant information. There is a lack of consistency between local authorities in the provision of advice and support, especially for those who are not eligible for authority-funded care and have to fund themselves.

To help people make the right choice, the OFT recommends a national gateway for care home information should be set up. To feed into this, local authorities should also publish directories including information such as what services authorities are obliged to provide, a list of care homes in their area and the services they provide, their prices and whether additional top-up payments above authority funding are needed. Government guidance to local authorities should also be revised to ensure that authorities provide advice to all older people seeking residential care, regardless of whether they qualify for authority funding.

Once in a care home, the OFT found that, although levels of satisfaction were generally high, those wishing to complain faced difficulties. In particular, there were low levels of awareness of complaints procedures and a lack of support for people wishing to complain. To address these concerns, the OFT recommends more user-friendly information on the complaints mechanisms available and piloting of advocacy schemes (this is where an independent advocate acts on behalf of a complainant to provide help and support).

The OFT also found problems with the majority of contracts that self-funded residents have with their care homes.  An analysis of care home contracts found that two thirds had fee-related terms that were either unfair or unclear, and in almost half it was unclear who should pay what amount.

The OFT is alerting care homes to its guidance on unfair terms in care home contracts, and will continue to take action against unfair terms where appropriate (see note 3). Care home trade associations are being encouraged to draw up model contracts with support from the OFT.

Launching the report, Sir John Vickers, OFT Chairman, said:

'Choosing a care home is a life-changing decision often made under distressing and difficult circumstances. That makes it all the more important that good information – from both public authorities and care homes – is readily available to help older people and their families, and that fair contracts and good complaints procedures are in place for residents.'

NOTES

1. The OFT report 'Care homes for older people in the UK – A market study' and supporting annexes are available from the publications/reports/consumer protection area of the site.

2.  In December 2003, the Consumers' Association (now Which?) submitted a super-complaint regarding the care homes sector on behalf of an umbrella organisation called SPAIN (Social Policy Ageing Information Network). SPAIN's members include Age Concern, Help the Aged, The Association of Charity Officers, and the Alzheimer's Society. The OFT said it would treat this as if it were a formal super-complaint. On 3 March 2004 the OFT announced that it would conduct a market study. The announcement is available from the super-complaints area of the site. Further information is also available from the market studies area of the site.

3.  In March 2005 the OFT took enforcement action against unfair terms in ten care homes operators' contracts. See press release 51/05.

4.  Under the Enterprise Act 2002 designated bodies can make super-complaints to the OFT, which the OFT must respond to within 90 days. The Enterprise Act also gives the OFT powers to investigate whether markets are working effectively for consumers. The OFT announced its intention to launch a market study on 3 March 2004. The study was launched on 29 June 2004.