Aging Population - News

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Aging Population

Guernsey’s home care industry is currently facing significant challenges due to an aging population and rising operational costs. Recent reports indicate that the cost of running a care home in the island has increased by 30-38% since 2018, outpacing the 21% rise in the Retail Price Index (RPI) during the same period. To address these issues, the Employment & Social Security Committee (ESS) has proposed several measures aimed at stabilizing the private care home market and ensuring the financial sustainability of the Long-term Care Fund. Key proposals include:

• Incremental Increase in Co-Payment: Gradually raising the weekly co-payment from £342 to £514 over the next five years to better reflect actual accommodation and living costs.

• Introduction of a ‘User Care Cost Contribution’: Implementing a means-tested contribution of up to £10,000 from individuals entering long-term care, applicable to those with assets exceeding £15,000 (excluding the value of their primary residence).

These proposals have received cautious acceptance from organizations such as the Guernsey Care Managers’ Association and Age Concern. They acknowledge the necessity of these measures to address the funding shortfall and to incentivize investment in the sector.

The ESS emphasizes that these steps are initial measures to mitigate short-term pressures. Further work is anticipated in the next term of government to develop a more sustainable model of community long-term care and to secure the scheme’s long-term financial sustainability.

Additionally, the number of individuals aged 85 and over in Guernsey is projected to more than double over the next 30 years, intensifying the demand for long-term care services. To meet this demand, it is estimated that more than 130 additional care beds will be needed by 2030. 

The States of Guernsey plans to debate these proposals early in the new year, aiming to implement changes that will support the care sector and ensure that residents continue to have access to necessary services. 

These developments highlight the critical need for strategic planning and investment in Guernsey’s home care industry to accommodate the growing needs of its aging population.