Elderly care demand & supply

There is a problem coming down the line when it comes to elderly care.

Demand is starting to outstrip supply, as the Baby Boomer generation reaches retirement and continues to age, thanks to improved longevity.

As a consequence of living longer but not necessarily healthier lives, the need for long-term care in later life is steadily increasing each year.

A new report from the Institute for Public Policy Research (IPPR) has estimated that, by 2030, there will be more than two million people over the age of 65 with no child living nearby able to provide care if needed.

Of these two million, the IPPR has estimated that 230,000 will require over 20 hours of care services each week.

As a result, the IPPR has said that the UK will need to “build new community institutions” to cope with the soaring demand for elderly care.

Commenting on the research, Clare McNeil, senior research fellow at the IPPR, said:

“Thousands of people in their 60s and 70s today could be left to cope on their own when they need care in the future, with overstretched services unable to make up the shortfall,

“Britain needs to build new community institutions capable of sustaining us through the changes ahead and to adapt the social structures already in place, such as family and care, public services, the workplace and neighbourhoods.”

Other suggestions contained within the report for filling the future ‘care gap’ included a wider use of “neighbourhood networks” (offering activities to reduce social isolation as well as providing care and support), strengthening community groups in some areas, following international examples and housing public services for different age groups, such as childcare and care for the elderly, together in the same buildings.

They also propose stronger employment rights for carers.

Another possible consequence of this rising demand for elderly care is more price rises in the private elderly care sector.

We already know that care fees inflation tends to rise much faster than average price inflation, often at greater than twice the rate.

With growing pressure on elderly care services, it will be important to factor in even higher care fees inflation in the future, to ensure that those funding their own care in later life do not run out of financial resources.

Photo credit