Laura Sharman 18 March 2022

Care homes could face 'widespread closures' under reforms, counties warn

Care homes could face widespread closures under reforms, counties warn image
Image: Halfpoint / Shutterstock.com

Care homes are at risk of closure as the Government has ‘seriously underestimated’ the cost of its social care reforms, county councils have warned today.

A new report by LaingBuisson for the County Councils Network (CCN), reveals that an extra £854m a year is needed to pay for adult social care charging reforms.

The report examined the cost of proposals to make care fees fairer between private and state fee payers, and the introduction of a new ‘Fair Cost of Care’ to increase fees paid by councils.

The Government has allocated £378m per year for councils to pay this new Fair Cost of Care, but the report warns an additional £854m a year is needed to make the proposals workable.

It argued that without the extra funding there would be a ‘severe sustainability risk’ to care homes across the country.

Cllr Martin Tett, adult social care spokesperson for CCN, said: ‘At the present funding level, these proposals could have a serious impact on the care sector across the country, leading to widespread care home closures and a rationing of care for the hundreds of thousands of people who need it each year.

’Councils will be left between a rock and a hard place – either by raising council tax to excessive levels and cutting local services, or by seeing widespread care home closures in their areas.’

CCN is calling on the Government to bring forward funding for local government in the Health and Social Care Levy, to pay for the additional £854m a year required.

Cllr David Fothergill, chair of the Local Government Association’s Community Wellbeing Board said: ‘Many councils have approached us regarding these reforms and this timely report clearly highlights the risk to care homes. We remain clear that under-funded reforms also pose a risk to the overall financial viability of some councils as they stand now.’

A Department of Health and Social Care spokesperson said: 'We recognise that the type of genuinely transformational change set out in our White Paper, People at the Heart of Care, cannot be accomplished overnight so we are providing £1.36bn over the next three years to support local authorities to make significant progress towards paying providers a fair rate of care. This includes £162m in 2022-23, followed by £600m in each of the following two years.

'As part of our gradual implementation, we will review our approach ahead of allocating money for 2023-24, working closely with local authorities and providers to monitor market changes, and determine appropriate grant conditions, guidance, and distribution mechanisms.'

The £37,000 SEND Problem image

The £37,000 SEND Problem

Natalie Kenneison, COO at Imosphere, argues that the real SEND funding crisis isn’t just about budgets - it’s about the systems behind the decisions.
SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director – Adult Social Care, Health & Wellbeing

Sefton Borough Council
£131,208 (Hay 1)
Lead with Purpose. Build on Excellence. Shape the Future of Health and Wellbeing in Sefton. Sefton (Metropolitan borough), Merseyside
Recuriter: Sefton Borough Council

Strategic Finance Business Partners (five roles)

Nottingham City Council
up to £80k
Nottingham is a bold, vibrant, and exciting Core City at the heart of the UK, alive with potential and ambition. Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Director of Finance (Strategy) – deputy S151

Nottingham City Council
up to £125k
Nottingham is a bold, vibrant, and exciting Core City at the heart of the UK, alive with potential and ambition. Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Customer Specialist

Essex County Council
Up to £25081.00 per annum
Customer SpecialistPermanent, Part Time£25,081 pro rataLocation
Recuriter: Essex County Council

Customer Specialist

Essex County Council
£25081.00 - £27653.00 per annum
Customer SpecialistPermanent, Part Time£25,081 to £27,653 pro rataLocation
Recuriter: Essex County Council
Linkedin Banner