How can care homes charge fees after a death?

A major UK care home provider is imposing new contract terms that charge families for 14 days after a resident's death and levy a £595 upfront 'dilapidations' fee, directly contradicting regulatory advice [1]. Avery Healthcare, which operates over 100 homes, has introduced a contract stating fees are payable for a fortnight post-death and requires the £595 charge for potential wear and tear when a resident moves in [1]. These clauses conflict with guidance from the Competition and Markets Authority, which in 2018 deemed it potentially unlawful to automatically charge for more than three days after a death and to bill for normal wear and tear [1]. The company defended the 14-day charge as allowing relatives "time and space to prepare appropriately," but its own terms indicate the fee is only waived if the room is re-let within that period, otherwise payment is required for the full two weeks [1]. The Local Government and Social Care Ombudsman dropped an investigation into a similar complaint after Avery offered a refund as a "goodwill gesture," and has offered the same to the complainant, YR of London [1]. "While the clauses remain in the contract, how many unsuspecting people will be hit with unfair charges while dealing with a bereavement?" YR stated [1]. After the 2018 CMA ruling, care providers were required to amend unfair terms immediately or face enforcement action, but the CMA declined to comment on whether it takes action against non-compliant homes [1]. The ombudsman stated it expects providers to follow the law and consider CMA advice when drawing up contracts [1].