Heather Jameson 18 May 2020

Care home on the brink of collapse

Care homes in the North East have issued a legal warning to North Tyneside council, claiming they could collapse within days without further funding.

Care North East, a firm which represents 21 care homes in North Tyneside has declared a ‘force majeure’, which effectively breaks the terms of the contract due to a major event.

In a letter to the council, the care firm has accused the council of failing to provide the money to support care homes and meet the extra costs of the coronavirus pandemic, Sky News has reported.

But the council claims that care homes were given a 5% increase in April along with a further 5% to deal with the pandemic.

In the official warning, it says: ‘This letter stands as our client's formal notice to the council that the care home market within North Tyneside is facing imminent collapse due to the council's conduct in the lead up to and during the current coronavirus pandemic.

‘The council has through its own sustained actions over a number of years, weakened and undermined the sustainability of the care home market; such that the market is incapable of withstanding the costs and effects of Covid-19.’

‘As vacancies increase due to deaths, with fewer and fewer (if any) new admissions, the running of homes within North Tyneside is becoming increasingly unsustainable.’

Jacqui Old, director of children's and adult services at North Tyneside Council, said: ‘We recognise there are additional pressures on North Tyneside’s care sector during the pandemic.

‘The sector is hugely important to us and we have listened to the concerns of our providers to see what extra funding and support they may need, as the crisis continues; we are working hard together to keep staff and residents safe.

‘In April, in line with many other local authorities, we provided a 5% increase in funding along with an additional 5% to cover other Covid-19 costs.

‘In addition to this we are discussing additional bespoke financial support to care homes.

Tiffany Cloynes considers force majeure provisions in contracts, but points out that they may not always be the most attractive options available to councils trying to ensure continuity of important services (£).

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Democratic Services, Elections & Monitoring Officer

Harborough District Council
Grade 12 £67,236 – £71,223 plus £3000pa Statutory Officer Allowance
We are looking for an accomplished and proactive leader for our vacant post of Head of Democratic Services & Elections Market Harborough, Leicestershire
Recuriter: Harborough District Council

Social Worker

Durham County Council
£35,412 - £39,152 (pre-progression) / £40,777 - £45,091 (post-progression)
We are looking for social workers who have completed the assessed and supported year in employment to join our Families First teams, working with our Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 9 £35,412 - £39,152 (Pre-Progression) / Grade 11 £40,777 - £45,091 (Post-Progression)
Are you a nurturing social worker passionate about supporting parents so that children can remain with their birth family?     This could be the right Durham
Recuriter: Durham County Council

Administrative Officer

Durham County Council
Grade 4 £25,583 - £26,824
An exciting opportunity has arisen for a Administrative Officer to join our busy, friendly team, supporting Children and Young People’s Services. 1 x Spennymoor
Recuriter: Durham County Council

Lunchtime Play Worker

Durham County Council
£24,796 pro rata
Lunchtime Play Worker Grade 1 £24,796 pro rata Part Time - 6.25 hour per week, Monday – Friday
Recuriter: Durham County Council
Linkedin Banner