The eye-watering care home bills hitting Brits – and how you can wipe yours | Personal Finance | Finance

For families with loved ones in care, the start of April often comes with a familiar dread. Fee increase letters have been arriving on doorsteps in recent weeks, and in many cases, the numbers are deeply worrying. One case shared with me this week was particularly stark; a woman saw her monthly care home bill jump from £7,400 to £9,200 overnight – a 23% increase. For most families, that’s unsustainable.

According to Lisa Morgan, head of nursing care fee recovery at Hugh James, this is far from an isolated example. “The annual increase in care fees each April is becoming increasingly difficult to absorb,” she said. “We are seeing cases where monthly fees have escalated dramatically. It’s not just a marginal adjustment; it’s a substantial financial shock that many cannot sustain.” Thousands of families are footing the bill, but many are unaware that the NHS may be able to help.

A little-known scheme called NHS Continuing Healthcare (CHC) could cover the full cost of care for those who qualify. It is a fully-funded package available to people in England and Wales with significant health needs. It can cover care home fees, nursing care, or care in your own home. Unlike many other forms of support, it is not means-tested. This means your savings, income or property are irrelevant.

Despite this, CHC remains significantly underused. Many people simply don’t know it exists or assume they won’t be eligible.

The application process can feel overly bureaucratic. It starts with an initial checklist and, if appropriate, a full assessment of medical needs, including mobility, cognition, medication, and the level of supervision required. But if someone meets the criteria, the NHS must cover their care costs in full – so try to stick it out.

There is also the possibility of reclaiming fees already paid. Retrospective claims can go back several years, and I’ve heard of families recovering substantial sums – around £90,000 in one case. If you or a loved one is facing care fees, especially at today’s eye-watering levels, it’s well worth looking into the scheme. If you’re declined and you feel you meet the criteria, there is no harm in appealing your application. I’ve heard people have more success post-appeal, anyway.

Ms Morgan, whose team helps people with CHC applications and fee recovery, added that with costs increasing at this pace, checking eligibility for this kind of support “is essential.”

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Nearly three million adult fixed-rate savings accounts are set to mature in the next three months. These accounts, according to Paragon Bank, hold a staggering £90.7billion in total. The bank says the figures highlight the sheer scale of decisions facing savers in the weeks ahead – and the growing urgency to review accounts and move money into competitive, higher-paying pots. Yet millions will fall into the familiar trap of failing to review their accounts and will quietly slip onto lower interest rates.

If the past few years of fluctuating interest rates have shown anything, it’s that loyalty rarely pays. People miss out on hundreds of pounds every year by keeping their money in savings accounts or ISAs that pay below-average returns.

Putting the average losses into perspective, someone with £20,000 in an easy access ISA account paying 2.49% AER would earn just £498 in a year. If they were to move that same balance to a deal paying 4.57% AER, the return would jump to £914, based on Moneyfacts calculations.

That marks a significant £416 shortfall. Definitely not a trivial sum when the cost of living is expected to rise further in the months ahead as the effects of the war in the Middle East kick in. Latest forecasts suggest the energy price cap alone could push average annual household bills up by as much as £230 for those on variable tariffs.

The interest lost by sticking with a poor-paying account could more than cover that increase – and then some. Check websites like Moneyfactscompare.co.uk for the top-paying savings accounts and Cash ISAs right now.