Care Sector Investment Under Threat

Investors could begin to lose appetite in the care home sector due to threats from charging reform policies.

Publishing the 33rd edition of Care Homes for Older People, author William Laing said while the sector had bounced back from the pandemic, it now faced increased threats from government reform policies, which aim to tackle private to public cross-subsidisation and better align fees.

Providers risk facing downward pressure on their fee income in October 2025 as the upper asset threshold for eligibility for council support rises from £23,250 to £100,000. This means there will be more people eligible for government support, and fewer private payers.