I am grateful for the opportunity to raise the important issue of the regulations governing subventions paid for patients in private nursing homes. This is a matter of grave urgency. I am grateful to the Minister of State, Deputy Moffatt, for his attendance as he has responsibility in this area.
This is a good day for the elderly. In the other House, the Minister for Finance today outlined in the budget substantial benefits for the elderly. Other provisions will result in extra places being made available in nursing homes, which have been badly needed for some time. As a result of the aging of our society, this has become a vital issue and must be addressed. We are already on course to do so.
The regulations governing subventions paid for patients in private nursing homes were criticised last month by the Ombudsman. The Minister responded to the Ombudsman, but the situation is still critical for a number of elderly people and I am anxious to know how this matter is progressing. The regulations provide that the means of children of dependent elderly people are taken into account when deciding the level of subvention for residents of private nursing homes. The subvention averages £73 per week for a patient and can sometimes be as high as £120. However, nursing home care costs between £300 and £400 per week, which is a considerable sum. The balance of the costs are made up of the resident's pension and by the family. About 53 per cent of the elderly in residential care are in private nursing homes.
Patients are assessed on their means and, if their children are working, their means are also assessed and taken into account for the subvention. The patient and the family, therefore, must provide about £200 per week after taking account of the subvention and pension. State owned homes are paid between £320 and £460 per week per patient by the State and there is no assessment for people going into these homes. The full cost of their care is met and they receive £15 per week comfort money as well. I have no objection to that because it is the way it should be. At the moment, however, families on modest incomes are being put under considerable pressure to subsidise private nursing home care. In other words, a son or daughter with three children and an annual income of £17,000 can be assessed as being capable of paying £48 per week from net earnings towards nursing home care. If it is necessary for their elderly relatives to go into a nursing home most families will try, as far as is possible, to meet the costs involved. They are only too delighted to do so, if they can possibly afford it. As we know, however, this is becoming a greater problem because families are smaller. When it was possible to divide such costs among larger families there was less of an onus on each individual member. That is changing and it is also becoming a bigger problem because of the growing number of older people.
If this cost difference is not being met, what is the nursing home to do? Will it put such people out on the street? I wish to instance a particular example which shows up an anomaly in the system. I am talking about the case of an elderly single woman who has no direct relatives. She receives a small public service pension of £8,500 a year. In the past this person owned a home which she sold off to raise a capital sum to provide for herself in her old age. Unfortunately, because of the increase in nursing home costs this capital has run out. This unfortunate woman now finds she is earning too much to receive an old age pension and receives a subvention of only £1.88 per day. There is a huge gap between her pension, which is just over £100 a week, and the £300 weekly cost of a nursing home. What will happen to somebody like that? These anomalies must be addressed.
The budget has started well by acknowledging the fact that we need to look after older people in our society. It is not only this generation who should benefit from the Celtic tiger, but also those who sacrificed so much in the past. Since the Minister of State has not only a responsibility but also a great commitment and interest in this matter, will he tell us how the re-examination of the regulations is going? In so far as he can, will he tell us whether there is room for improvement and, if so, will such improvement be made? Will subvention levels be increased? Has the Minister of State a response to the call by those working in nursing homes to have a special category subvention to meet the shortfall in patients fees?
I thank the House for allowing me to bring this issue to its attention.
