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.

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

Assistant Director for Early Intervention and Prevention

Staffordshire County Council
£95,083 - £99,735 plus car allowance £4,395 and a market supplement up to £10,000
Staffordshire is a great county to live, work and invest and is a place where most people enjoy a good quality of life Staffordshire
Recuriter: Staffordshire County Council

Assistant Director for Family Safeguarding

Staffordshire County Council
£95,083 - £99,735 plus car allowance £4,395 and a market supplement up to £10,000
Staffordshire is a great county to live, work and invest and is a place where most people enjoy a good quality of life Staffordshire
Recuriter: Staffordshire County Council

Community Transport Co-Ordinator - Braintree District Council

Essex County Council
£13.5700 - £14.9500 per hour
Community Transport Co-ordinator - Braintree District Council Temporary, Full Time£13.57 - £14.95 per HourBraintree, EssexClosing Date
Recuriter: Essex County Council

Procurement Manager

Essex County Council
£46388.0000 - £54573.0000 per annum
Procurement ManagerPermanent, Full Time£46,388 to £54,573 per annumLocation
Recuriter: Essex County Council

Youth Officer (CDC)

City Of Doncaster Council
Grade 7, £27,259 - £29,955 (Pay award pending)
The City of Doncaster Council is a confident, ambitious organisation Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner