Healthcare expert Laing and Buisson has claimed the gap between council care home fees and operator costs is narrowing.

The analysts annual survey of UK local authority baseline fee rates for 2013/14 saw an average increase of 1.8%, compared to the 2% Laing and Buisson estimates operators need to keep pace with inflation.

The new figures reveal a narrowing gap, compared to a 1.6% increase last year and an estimated 2.5% to keep up with costs.

‘As predicted in last year's report, there was at least no double whammy from cuts in placement volumes last year, and the latest baseline fee survey results suggest that the volume of local authority care home placements will continue to be fairly stable over 2013/14, despite pressure on local authority budgets,' the company said.

‘Half of responding councils indicated they expected no change in the number of older people supported by the end of the year.'