William Eichler 13 July 2017

‘Unsustainable’ council fees threatens care system collapse

The care system is ‘fragile’ due to ‘inadequate and unsustainable’ fees from local authorities, independent care providers say.

Care England, the largest representative body for independent providers of adult social care, has warned higher staffing costs, falling profits and an increase in demand will lead to fewer council placements with private care providers in the future.

A survey carried out by Care England revealed 96% of providers expected their overall staffing budget to increase this year and all expected further increases over the next three years to keep pace with demand.

It also found only 10% of providers expected profit margins to increase in 2017/18 and this slightly increased to 15% projecting an increase in profit over the next three years.

Conversely, 55% of providers were projecting a fall in profits up to 2020.

As a result of these pressures, 32% of providers projected a decrease in placements this year which increased to 45% of providers projecting to take on less local authority placements over the next three years.

‘Care England’s survey makes is clear that providers are expecting higher staffing costs and falling profits whilst demand continues to increase,’ said Professor Martin Green, chief executive of Care England.

‘In order to manage this, providers are anticipating fewer local authority placements while investing in technology and services to respond to demand. 

‘The sector can and must adapt, but dynamics are shifting and unless local authorities pay the commensurate rate to providers there will be a lack of capacity for local authority funded residents and the ongoing workforce challenges will not be addressed.’

Care England’s warnings come amid cuts to councils and a social care funding crisis. According to a Health Foundation report published last May, the care system faces a funding gap of £2.1bn by 2019/20.

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