Care home costs in Ceredigion, set to rise by at least eight per cent this year, will have risen by between 39 and 55 per cent in just three years, councillors have heard.

The cost rises, outlined to Ceredigion Council Cabinet members at a meeting on Tuesday, 14 May come as the council agreed to take over the running of the under threat Hafan y Waun care home in Waunfawr.

Talks are currently underway to bolster numbers at the newly acquired home by shutting the Tregerddan care home and transferring residents and staff to Hafan y Waun.

In Ceredigion there are nine independent care homes and six local authority-run care homes.

Cabinet members heard that a standard fee is set for older persons’ placements that are commissioned by the council in private residential and nursing care homes within the county.

In 2021 the council commissioned an independent review of fees which saw the 2022 fees increase significantly, and, in 2023, an inflation backed rise of 8.8 per cent.

Members heard discussions had taken place with the care providers for 2024, proposing an uplift ranging from 8.22 to 8.37 per cent, which saw none accepting.

A revised offer, including an Additional Cost Contribution as part of an enhanced offer for en-suite rooms at an extra £25 per week where applicable, was then made.

“All three nursing homes have rejected the proposed fees, three residential homes have accepted the proposed fees, albeit accepting the fee in recognition of the council’s financial position,” members heard.

“The remaining three residential homes have not accepted the proposed fees.”

The report added: “The fee offer needs to be considered within the context of the council’s significant financial pressures and it should be noted that the proposed percentage uplifts of over 8.2 per cent is well in excess of the council’s increase in core funding from Welsh Government.

“The council has been engaging with providers since late September and has made two fee proposal offers.

“It has done everything in its power to give care home providers in Ceredigion an uplift for 2024/25 that is both affordable within the budget and that takes account of the key variables affecting care homes.

“There are general issues that have been raised by providers that the fee is not sufficient to cover costs, but the comments raised have not been supported by a robust evidence base.”