Monday, 20 March 2017

'Lack of money' prompts care firms to end council contracts



Care firms have cancelled contracts with 95 UK councils, saying they cannot deliver services for the amount they are being paid, a BBC Panorama investigation has found.

 
Some firms said they could not recruit or retain the staff they needed.


The Local Government Association said it was the result of "historic under-funding" and an ageing population.


The government declined an interview but said English councils had received £9.25bn for social care.


The figure for the number of cancelled contracts comes from a Freedom of Information request, which was responded to by 197 of 212 UK councils.
According to the research, carried out for Panorama by Opus Restructuring and Company Watch, 69 home care companies have closed in the last three months and one in four of the UK's 2,500 home care companies is at risk of insolvency.


Councillor Izzi Seccombe from the Local Government Association - which represents councils across England and Wales - said: "We have warned that the combination of the historic under-funding of adult social care, and the significant pressures of an ageing population and the national living wage, are pushing the care provider market to the brink of collapse.


"These figures show the enormous strain providers are under, and emphasises the urgent need for a long-term, sustainable solution to the social care funding crisis."


Many home care companies say their biggest problem is recruitment and retention of carers.


The Centre for Workforce Intelligence estimates at least two million more carers will be needed by 2025 in England alone, in both in-home care and care homes, to cope with growing demand.





BBC       News.