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Care home fraud “almost doubles in a year” (6 May 2014)

Date: 06/05/2014
Duncan Lewis, Crime Solicitors, Care home fraud “almost doubles in a year”

The Audit Commission’s head of counter-fraud Alan Bryce has revealed that in the last year, care home fraud has increased by 82%.

Between 2012-2013, around £4 million “went missing” from the care system budget, said Mr Bryce.

The figures mean that care home fraud has almost doubled in the last year, as more families try to hide assets so that elderly relatives can have their care paid for by the State.

The cost of care in a home can range up to £200,000 a year. Individuals with more than £23,250 must pay for their own residential care and in the past, there has been a public backlash against elderly people having to sell their homes to pay for state-provided care in a home, rather than passing property wealth onto their children as part of their inheritance. It is estimated that three out of four families whose elderly relative is placed in a care home loses their inheritance as a result of a home being sold to pay care home fees.

In the last five years it is also estimated that one million homes have been sold to pay for care homes fees as a result of the individual having more than £23,250 in assets, including their home.

In an article in The Times, Mr Bryce said that care home fraud involving families retaining money intended to pay for a care home place for a relative ? or families even continuing to claim for care home fees up to £60,000 after the death of a relative ? is one of the main areas of concern for the Audit Commission.

Mr Bryce said that even two cases of care home fraud a year could mean a Local Authority losing between £350,000 to £400,000 pounds.

Middle class families are being blamed for the rise in care home fraud, as some middle class families avoid care home fees by transferring money out of their accounts.

In 2013, the government promised to cap care home fees at £75,000 ? but this is not due to be introduce until 2016, after next year’s General Election.

The figure of £75,000 does not include an estimated £12,000 which pensioners have to spend on accommodation and food.

The study into care home fraud was conducted by researchers for NFU Mutual Insurance and researchers found that as many as two million pensioners have had to dig into their savings to pay for care in the last five years, with thousands of families losing out on the wealth accumulated by their parents as a result of having to sell the family home to pay for care.

Duncan Lewis Fraud Lawyers

Duncan Lewis fraud lawyers can advise on fraud at any stage of a charge, including allegations of care home fraud or benefit fraud.

Duncan Lewis fraud lawyers are available 24/7, 365 days a year and our lawyers regularly visit police stations, courts and prisons.

For expert legal advice on fraud charges and representation, contact Duncan Lewis fraud lawyers on 020 7923 4020.


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