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.

Devolutions clean air dividend image

Devolution's clean air dividend

Jane Burston of Clean Air Fund argues that tackling air pollution is one of the clearest ways for local leaders to prove devolution can transform lives.
SIGN UP
For your free daily news bulletin
Highways jobs

Apprentice Highways Operative

Durham County Council
£15,434 per annum NMW in first year of apprenticeship
Earn. Learn. Qualify. Do you want to earn while you learn, with the chance of progression once you qualify? Do you want the opportunity to grow, deve Durham
Recuriter: Durham County Council

Residential Workers - Casual

Durham County Council
Grade 7 £30,024 - £33,699 pro rata to hours worked. Pay award pending.
Residential Workers - Casual Contract Opportunities are available across the County Durham Area We have opportunities available to join the casual p Durham
Recuriter: Durham County Council

Residential Workers

Durham County Council
Grade 7, £30,024 - £33,699 per annum. Pay award pending.
Residential Workers - Opportunities are available across the County Durham Area Salary
Recuriter: Durham County Council

Team Leaders

Durham County Council
Grade 8 £32,597 - £36,363 per annum (pay award pending)
Team Leaders – Opportunities are available across the County Durham Area   Salary
Recuriter: Durham County Council

Casual Tutor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£35.75 per hour
Casual Tutor£35.7... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner