Individuals who self-fund their residential care cross-subsidise the cost of local authority funded beds in the same home.
This rather unpalatable fact of life has been apparent for years, with local authority contribution rates falling short of the actual cost of providing care in privately owned residential homes.
This investigation by The Telegraph goes a step further, calculating the 'self-funder tax' at a whopping £1.3bn a year, factoring in the modest profit margins of care home operators.
It's interesting to see the report quantifying the contribution paid by Surrey County Council in 2014/15 at just £558 a week, leaving a shortfall of £232 a week; a shortfall paid for by self-funders in the same homes.
With Surrey County Council in the news this week for abandoning their referendum plans to levy a 15% council tax increase and then being accused of doing a sweetheart deal with government, this issue of an adult social care funding crisis isn't going away.
Valuing Care estimated that the weekly cost of providing care in Surrey in 2014‑15 was £558. The council paid £326, leaving a shortfall of £232.