One in five councils have not increased the fees they pay care homes in the past year despite costs rising by up to 5%, new research has shown.

The study, published by Care England, found 18% of councils gave no increase?for nursing with dementia beds, and 22% of councils reported no increase for residential care home beds.

Care England warns that many care homes are being forced to turn away council placements as a result of the underfunding.

Professor Martin Green, chief executive of Care England, said: ‘These councils pay care homes just £350 a week for 24hr care, seven days a week. By failing to properly fund their care, they are abandoning old people. To give no real increase in fees when costs have risen by over four per cent is an insult.

‘Our society is institutionally ageist. Older people are treated like a problem to be tolerated rather than something to be cherished.’

Care England estimates that there will be a 7.5& increase in the number of older people in care homes by 2020.