Cost of Care Homes vs. Tech-Enabled Solutions With TechSilver

Growing old can feel like you’re the same on the inside while your relationships and the world around you change.

However, we can help our elderly parents and senior relatives age with dignity and in familiar surroundings—through tech-enabled home care solutions.

Wait, don’t tech-enabled solutions cost an arm and a leg?

Actually, compared to the cost of care homes, tech-enabled solutions may be a cheaper long-term solution to caring for your elderly family members.

To help you make informed decisions regarding care for your loved ones, we’ll discuss:

  • The average cost of care homes and who typically foots the bill
  • Tech-enabled care solutions that can help retain your loved one’s independence
  • The long-term differences in cost between care homes and tech solutions

Care homes may seem like an easier option, but are they really sustainable?

What Is the Cost of a Care Home?

elderly lady wheeled around in a care home

In the UK, the average annual cost of living in a care home ranges from £27,000 to £39,000.

If round-the-clock dedicated care is necessary (due to conditions like middle and late-stage dementia), the annual cost of nursing care falls between £35,000 and £55,000.

These fees can vary depending on a few factors, including:

  • Amenities in the care home
  • Extra services, like excursions and concierge services
  • Trips to receive medical care or physical therapy
  • Local county laws on funding care
  • Savings and assets which determine the individual’s contribution to care home fees

Who Pays the Care Home Fees?

Local councils may pay for some (or all) of the care home fees, depending on the capital of the senior in need of care.

Local councils determine the elderly person’s capital limit based on a financial assessment of their:

  • Earnings
  • Pensions
  • Benefits
  • Savings
  • Property

If your elderly loved one has savings or assets worth more than the council’s upper capital limit, they may have to pay their own care home fees in full.

However, if their capital falls below the lower limit, local authorities will cover all care fees.

If your family member falls between the upper and lower capital limits, the local authorities will calculate their care home fee contributions based on a sliding scale.

In the table below, we break down the upper and lower capital limits across the UK:

CountryLower Capital LimitUpper Capital Limit
Northern Ireland£14,250£23,250

Aside from local council contribution, family members can also chip in and pay care home fees. However, this can be risky since life circumstances (such as illness, additional children, or employment) can easily change. This may make it difficult to continue payments indefinitely.

Lastly, private health insurance companies may also pay care home fees. However, this raises the issue of paying high premiums or fees indefinitely.

So, what’s the solution?

We’re looking for a way to keep your loved ones at home for as long as possible. Not only is it more affordable, but it also boosts their confidence and independence. It keeps the possibility of living a vibrant life open even as they age.

Let’s compare the cost of care home fees to the cost of tech-enabled solutions.

How Much Do Tech-Enabled Home Care Solutions Cost?

Tech-enabled home care solutions may have a seemingly high initial cost sometimes, but they are much more affordable thanks to their low annual maintenance cost.

For example, TechSilver products typically cost the following:

  • First-year setup and maintenance costs potentially range between £1,500 and £2,000 depending on the number of devices you buy.
  • Maintenance costs, in the form of subscriptions, fall between £500 and £1000 per year, depending on how many devices provide real-time alerts.
However, very few people will need multiple devices, and the figures above only reflect cases where you wish to reflect a care home experience similarly at home. If you just need a tracker or personal alarm for dementia, for instance, your costs will only be:

  • The price of the tracker or personal alarm: This is generally anywhere between £100 and £400.
  • The ongoing flexible subscription fee: This is usually around £10-30 per month depending on the device you choose.

To clarify, we’re not referring to robotic pets or any form of technology that replaces human relationships. You’ll still want to see your grandad or grandma regularly of course!

We focus on simple solutions that solve the most common problems that seniors living alone face, such as a higher risk of:

  • Falling due to poor vision and balance
  • Attacks from intruders or scammers
  • Wandering due to dementia or Alzheimer’s
  • Forgetting to take medication
  • Confusion when using smartphones, sophisticated gadgets and the internet

To resolve these issues, you need to equip their homes with:

  • Remote monitoring systems to ensure their safety in case of falls or intruders
  • Enhanced documentation tools to ensure consistency in daily schedules and medication
  • Wearable communication tools to monitor heart rate, detect falls and send an SOS
  • Remote tracking tools to locate and safely return elderly relatives prone to wandering

We already know that something as simple as a mobile app can make life richer for the elderly.

Let’s go one step further and explore the tech-enabled solutions that you can get for less than £1,000 per year.

Cost Comparison of Care Homes and Tech-Enabled Solutions

In the table below, we breakdown the cost of several basic devices needed to optimise safety and wellbeing for your elderly loved ones:

Tech-Enabled Home Care SolutionSet-Up CostAnnual Maintenance Cost
(Charged As A Monthly Subscription)

Dementia Tracker GPS Keyring/Necklace with SOS

Dementia Tracker GPS Keyring/Necklace with SOS


Motion Sensor Night Light

Motion Sensor Night Light


Simple Dementia Mobile Phone

Simple Dementia Mobile Phone


Personal Alarms for Elderly

Personal Alarms for Elderly


Automatic Pill Dispenser & Reminder w/ Family Text / Email Alerts

Automatic Pill Dispenser & Reminder w/ Family Text / Email Alerts


Elderly Monitoring System

Elderly Monitoring System


Which devices you choose depends entirely on the needs of your loved one and the level of monitoring they require.

If you’re wondering what to choose, a good place to start is familiarising yourself with the early signs of wandering and deciding whether a tracker is necessary. We have a handy guide to wandering to get you started.

An important point to note here is that whatever wearable tech solutions you choose, you must ensure that they are easily wearable, otherwise they won’t work.

Make sure the size, design and usability are fit for your loved one.

For example, TechSilver’s GPS Tracker Keyring is easily wearable and sends alerts directly to you:

”I purchased the GPS tracker for my father-in-law, who has dementia. The first day it was on his keys, it paid off. He went out and couldn’t find his way home. I alerted the Care company, and they found him 4.5 kilometres from his house. Excellent product”
Martin C., ⭐⭐⭐⭐⭐ Verified TechSilver Buyer

This was Neil’s experience after getting a tracker for his elderly mother:

”My 83-year-old mother has vascular dementia. TechSilver products have transformed her life and ensured she retained her independence whilst giving the family real comfort, knowing where she is and what she is doing.”
Neil Harvey, ⭐⭐⭐⭐⭐ Verified TechSilver Buyer

Cost Breakdown of Tech-Enabled Home Care Solutions

younger family member shows tablet to elderly family member

A cost comparison between care homes and the installation of tech-enabled solutions are demonstrated in the table below. It’s clear that tech-enabled solutions are the cheaper option:

Care SolutionFirst Year CostsSubsequent Annual Costs
Care homes£27,000–£39,000£27,000–£39,000
Tech-enabled solutions£1500–£2000£500–£1000

Making similar cost assessments early on is crucial in securing your ability to give your senior family member a good quality of life well into their later years.

As they get older and more dependent on care and medical attention, they may need to go into nursing care or have a live-in caretaker.

Finding more affordable tech solutions early on, while they’re still mobile and self-sufficient, allows you to afford later intensive, round-the-clock care.

Use Technology Solutions to Age in Place

Aging in place allows your elderly loved one to grow older in the comfortable surroundings that they’re used to and love, thereby maintaining and improving their quality of life.

To do this successfully, you and your family can use tech-enabled solutions to resolve common issues that the elderly face, such as falls and reduced mental processing capabilities.

Since tech solutions are more affordable, they’ll free up your resources to plan for care later on.

If you’re looking for a GPS Tracker to keep your elderly loved one safe, TechSilver offers a discreet, well-designed tracker that gives you direct alerts through a tracking app on your phone. It also has tech support seven days a week and you can try it risk-free.

Hi, I'm Miles

I’m the founder of TechSilver, the world’s leading assistive tech specialists. My team has made these resources to help people care for their loved ones, so we hope we can help you today!

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