A government watchdog called today for the elderly and their relatives to be given much more information and support when they choose a care home.

After a ten-month study into the £8 billion residential and nursing home market, the Office of Fair Trading (OFT) called for greater and transparency and fairer contracts for the hundreds of thousands of people who live in care homes.

The study also revealed a confusing "maze" of information about what was available and lack of consistency in the advice and support offered by local authorities to vulnerable old people and their families. The OFT also uncovered a lack of clarity surrounding complaints procedures.

People who pay for care home fees themselves were most likely to have problems with care home contracts, the study found. Two-thirds of the self-funders’ contracts analysed by the OFT had unfair or unclear terms relating to their fees.

The OFT is calling for a raft of measures to ensure a fair deal for care home residents. These include: a one-stop shop for information on care homes provision; better access to complaints’ procedures; greater price transparency and fairer contract terms.

It wants local authorities to publish directories of information on care homes in their area, their services, prices, and what services the local authority will provide.

Launching the Care Homes for Older People in the UK study today, John Vickers, the OFT chairman, said: "About half of people going into care homes do so from hospital. It is a life-changing decision. It is generally a lasting decision, and it can be - for self-funders in particular - a large commitment financially.

"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."

The OFT report was welcomed by welfare groups, including the Social Policy Ageing Information Network (Spain), whose complaint prompted the study originally.

Annie Stevenson, chairman of Spain, called it a "major step forward", but said its recommendations did not go far enough.

She said: "At the moment too many people are being left to negotiate complex contracts, often at times of crisis. We agree with the OFT that self-funders should have the same access to advice and information as state-funded people.

"But we would like the Government to go further and consider giving self-funders the right to choose to have their local authority negotiate a contract on their behalf. The Government must respond positively to the OFT’s recommendations if it is to ensure that all older people get the care and protection they need, when they need it."

The English Community Care Association, the largest representative body for community care homes, also welcomed the report - although it complained that it had failed to address the link between funding and quality and to scrutinise local authority monopolies which can skew the market.

Care home residents pay an average £380 per week, although prices range from £280 to £700 per week according to the services offered.

OFT researchers found that more than one in 10 care homes failed to provide them with basic price information, even after persistent prompting. Other homes did not stipulate which services would incur extra charges.

The OFT wants all older people to be given the price of accommodation and residential or nursing fees in writing before they move into a home. It is also calling for all care homes to provide residents with contracts and statements of term.

Researchers found that in one-third of cases they were unable to get these documents from care homes. Nearly three-quarters of the contracts analysed by OFT researchers contained either unfair or unclear fee-related terms.

In 40 per cent of those contracts it was unclear who should pay what amount. Top-up fees paid by residents or their families for services over and above the Government minimum standard ranged from £40 to £200 per week.

The OFT found there was confusion about exactly what those fees were expected to cover, with 30 per cent of local authorities offering no guidance on the subject. One-fifth of care homes charged self-funded more for a place than residents who were funded by the local authority.

Jonathan Ellis, policy manager at Help the Aged, welcomed the report. "The real test however will be how, and when, the Government responds to these challenges," he said.

"Meanwhile, the care home and long-term care sector remains in crisis. Since 1996, nearly 74,000 care home beds have been lost and many older people face problems getting the care they want.

"The Government is apparently striving for a solution and has made its desire for change very clear, yet older people continue to face a system which offers limited choice and they remain confused about where to get advice and support about care homes’ fees and services."

Mr Ellis called for older people to be given the right to local independent advocacy and support services to allow them to exercise their rights as consumers of long-term care. He also said Government and regulatory bodies should place greater emphasis on improving the quality of care services for older people.

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