Laura Sharman 20 March 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

Senior Health and Safety Risk Advisor

North Yorkshire Council
£42,839 - £47,181 per annum
Are you able to make sound, evidence‑based and proportionate health and safety decisions? Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Health and Safety Advisor

North Yorkshire Council
£34,434- £42,839
Are you someone who can support and mentor educational clients to make impactful health and safety related decisions? Wetherby, West Yorkshire
Recuriter: North Yorkshire Council

Learning Disability & Autism Transforming Care Case Manager

Essex County Council
£44952 - £52884 per annum + Hybrid Working
This is a part time position for 22.2 hours per week with flexibility to agree working pattern. The pro rata'd salary range is £26,971 to £31,730 per England, Essex, Chelmsford
Recuriter: Essex County Council

Assistant Director for Estate Strategy and Development  

Derbyshire County Council
£71,202 - £77,495 per annum
We are seeking an ambitious and strategic leader to join our senior management team as Assistant Director for Estate Strategy & Development. Matlock, Derbyshire
Recuriter: Derbyshire County Council

ESCA Development Assistant

Essex County Council
£25959.0000 - £27613.0000 per annum
ESCA Development AssistantFixed Term, Full Time£25,959 to £27,613 per annumLocation
Recuriter: Essex County Council
Linkedin Banner