Update on consumer law and care home residents contracts

Following its unsuccessful case against Care UK in July 2021 and subsequent withdrawal of proceedings against Barchester, the Competition and Markets Authority (CMA) has revised its guidance for care homes on complying with consumer law obligations (UK care home providers for older people- advice on consumer law 8 December 2021). 

Most of the Guidance remains unchanged from the original version issued in November 2018. 

The main changes relate to: 
  • The length of time for which fees should be charged after a resident’s death.
  • Re-iteration of the “need” for homes to provide key information to prospective residents on first contact, however they are funded. 
  • Terms requiring upfront payments such as security deposits and reservation deposits.

For information and advice on how this may affect your care home, speak to Royds Withy King.