Laura Sharman 12 February 2019

Double the number of providers handing back care contracts to councils

Double the number of providers handing back care contracts to councils image

The number of social care providers handing back contracts to councils has more than doubled in 2018, new research has revealed.

Research commissioned by Hft found 59% of providers have also been forced to close down some parts of their organisation due to cost pressures. Nearly seven out of ten warn they expect to do the same in the near future.

The report also found 80% providers report low wages as the biggest barrier to recruiting and retaining staff.

‘This year’s sector pulse check is a red flag for the future of social care,’ said Billy Davis, public affairs and policy manager for Hft.

‘With repeated calls for a sustainable funding solution going unheeded, we are now seeing the true cost of government inaction on providers.

‘More than half of providers have reported needing to hand back financially unsustainable contracts in the past year. This is culturally at odds with how many providers in the sector operate, particularly with individuals who may have been supported by a provider for much of their adult lives.’

Pablo Shah, economist at Cebr, added: ‘The results of the latest survey highlight that cost pressures are intensifying for the UK’s care providers, with nearly a third of organisations that are not already running a deficit expecting to do so within the next two years.’

Last week Mears warned social care providers will fail until Green Paper is published.

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