HC Deb 16 March 1995 vol 256 c694W
Sir Trevor Skeet

To ask the Secretary of State for Social Security (1) when he proposes to revise the fees available for retirement pensioners in residential homes to meet the actual costs of the accommodation and services provided;

(2) if he will identify his expectations of the liability of the state for retirement pensioners living in residential homes after their assets had run out in each year up to 2002;

(3) if he will estimate the additional cost to public funds at current rates, if his Department matched the real costs met by retirement pensioners in residential homes.

Mr. Roger Evans

I infer that these questions are about the higher levels of income support, which are available to people living in residential care and nursing homes on 31 March 1993 with preserved rights. These range between £194 and £262 for residential care homes and £290 and £325 for nursing homes with higher amounts available in London.

All income support limits are reviewed each year taking account of a variety of available information as well as representations from interested parties. Any extra help is targeted within available resources at specific groups where the need is greatest. All the limits will be increased in April. It has never been the intention to meet all fees, however high they may be set. That would be an unrealistic commitment.

We will continue to look carefully at these amounts each year as part of the uprating exercise. Any increases which result from that uprating will apply equally to people living in registered residential care homes on 31 March 1993 who were self-supporting at that time but who need to claim income support at a later date when their assets run out. Forecasts about the state's liability are not appropriate in these circumstances.

The estimated additional cost to public funds if the Department were the meet the full costs charged to people above pension age in residential care homes would be £56 million and for those in nursing homes £79 million. These figures are based on the February 1994 income support quarterly statistical inquiry, and reflect the limits in payment at that time. The figures assume that homeowners do not make further increases in charges.