A government watchdog has called for greater price transparency to stop the elderly and their families being exploited by private care homes. Nigel Hawkes, Health Editor, explains why.

What kind of care homes are now under the spotlight?

Most of the focus is on privately-run homes, the large majority of the UK's 15,700 residential and nursing homes, which take a mixture of residents. Some residents are paid for by local authorities, some self-pay, and some get the bulk of fees paid by local authorities, but also pay "top-up" fees for services beyond the laid-down standards - a better room, or a nicer view, for example.

Why are they the focus of so much attention?

About 400,000 elderly people live in residential and nursing homes. Half go into the homes direct from hospital, when they may be frail and vulnerable. Once in a home, residents seldom move to another one. This means that the terms on which they are offered care are particularly important.

So are the homes failing their elderly residents and relatives?

The OFT says that many homes are reluctant to produce contracts covering the services they offer and the prices they charge, even when pressed to do so. When they do produce contracts, two thirds contain clauses that are either unfair or unclear. The watchdog says that it has no evidence they are being used unfairly, but that the potential exists. The lack of clarity means there is scope for exploitation in top-up fees, with some residents not realising that paying them is not a condition of being cared for. Local authorities are obliged to pay for care: top-up fees are meant to cover extra services.

How does the OFT say this can be rectified? Will it help?

The OFT says that old people need better advice - from a single source - and greater price transparency and a better complaints procedure. In March the OFT acted against providers who look after 50,000 people in 800 care homes, ordering changes in standard contract terms. The home owners, including Bupa, Southern Cross Healthcare, Westminster Healthcare, Four Season Healthcare and the Elizabeth Finn Trust, agreed to change their contract terms to eliminate, for example, frequent or arbitrary increases in fees, or unfair penalties, restrictions and obligations on the resident. Which?, the consumer watchdog, said that the report was a step forward, welcoming in particular the call for better information.

Explore UK News

• Crime News

• Education News

• Health News

• Scotland News

Times Recommends

• Iran arrests relatives of opposition leaders
• Banksy rival has final word in art feud
• Electrician travels 175 miles to change bulb