Jamie Hailstone 01 August 2011

Care homes accused of keeping cash after residents die

Private care home operators have been accused of keeping thousands of pounds of local authority fees after failing to notify councils when residents die.

An investigation by The Times newspaper has claimed that some providers are taking up to six months to inform councils that a resident has died, while still receiving the fees for them.

The newspaper sent Freedom of Information requests to 20 councils around the country and 14 admitted overpaying operators in the last year after residents had passed away.

According to The Times, Durham CC paid out £105,998 for the care of 79 residents who had died, because they had either not been promptly informed or the home had to failed to update its records in time.

Birmingham City Council has reportedly spent £98,137 for 109 deceased residents and still not been repaid.

Of all the councils surveyed by The Times, only Kensington and Chelsea RLBC said they had no records of any overpayments to care homes.

Age UK's charity director, Michelle Mitchell, said she hoped the investigation would serve as a 'wake-up call' to all local authorities.

'News of care homes keeping money that is not rightfully theirs squeezes already reduced budgets further and will mean that other older people cannot get the care they need,' she added.

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