Laura Sharman Monday, March 20, 2017

Care firms cancelling council contracts due to lack of money

Care firms have ended contracts with 95 councils, warning they are unable to deliver services on the amount they are being paid, a new investigation has revealed.

The research by BBC Panorama found 69 home care companies have closed in the last three months, with one in four at risk of insolvency.

The Local Government Association (LGA) warned the care provider market was ‘on the brink of collapse’ due to the historic underfunding of adult social care and an ageing population.

‘These figures show the enormous strain providers are under, and emphasises the urgent need for a long-term, sustainable solution to the social care funding crisis,’ said Cllr Izzi Seccombe, chairman of the LGA’s Community Wellbeing Board.

Cllr Seccombe also warned that the £2bn of new money from Government will still leave a shortfall in the projected social care funding gap.

She said: ‘There is already an expectation that the money will reduce the immediate pressure on the NHS. But it is desperately needed to protect vital support services, like home care, ensuring older people and those with mental health conditions, learning and physical disabilities live dignified and fulfilling lives.

‘The overall funding pressures facing councils will also mean they will need to make further cutbacks to vital services this year, including social care.’

Paul Dossett, head of local government at Grant Thornton, added: The Government needs to look beyond simple monetary issues and take a broader, more comprehensive look at the care sector. There needs to be long term structural reform which will invest in providers and people who deliver these services, including those EU nationals that make up such a large proportion of the workforce, otherwise our care system will continue to be underfunded, undervalued and understaffed.'

Designing for cohesion image

Designing for cohesion

Tom Fairey, Development Director at Alliance Leisure, discusses how community spaces can strengthen local connections.
SIGN UP
For your free daily news bulletin
Highways jobs

Director of Highways, Waste and Environment

North Northamptonshire Council
£97,632 - £108,033 (subject to additional pay award)
North Northamptonshire is a place of scale, ambition and ongoing transformation. Northampton, Northamptonshire
Recuriter: North Northamptonshire Council

Director of Public Health & Leisure

Brent Council
£135,000
Brent is brimming with ambition and opportunity. Brent, London (Greater)
Recuriter: Brent Council

Head of Property & Regeneration

Swansea Council
£88,633 - £100,994
We are seeking to appoint an outstanding and experienced professional Swansea (Abertawe)
Recuriter: Swansea Council

Strategic Director – Adults and Public Health

Ealing London Borough Council
£180k
We are looking for an ambitious, visible and collaborative leader who can help shape the future of adult social care Ealing, London (Greater)
Recuriter: Ealing London Borough Council

Service Directors - Inclusive Education, Family Help and Skills

Shropshire Council
£107k - £112k
Over recent months, we’ve moved from announcing a financial emergency into a period of recovery. Shropshire
Recuriter: Shropshire Council
Linkedin Banner