Breaking news from the BBC Paper tax returns to be replaced by digital by 2020


Chancellor George Osborne delivers his last budget before the General Election


Are You On The Taxman's Target List? feb 2012


UK inflation falls to Bank Of England Target Of 2%


Prime Minister pledges tax cuts


Call us now on 023 8083 6900 ABDS Home

News - 18 November 2011

Elderly at risk

Councils are "living in a parallel universe" by cutting the rates they pay for care home places but expecting the same service, industry leaders say.

The English Community Care Association, which represents charities and care firms, said the "appalling" behaviour was pushing some to the brink.

Recent analysis has found that the number of care home companies going into administration had more than doubled to 73 between October 2010 and September this year. The previous 12 months the number of care home companies that went into administration was 35.

Most care homes are privately run, with about half of the 390,000 places in care homes in England are paid for by local government with the rest split between the NHS and private payers.

But councils said they were facing huge budget cuts themselves.
Separate research from Laing and Buisson, the health consultants, found that council rates had fallen by 3.9% in real terms and would have to rise by up to 8% each year for the next three years to cover the cost of even the most basic standards of care.
The study, commissioned by Bupa Care Services, said each resident will need to be funded by an extra £41 per week, or £2,132 a year, to ensure that care homes can meet the basic “minimum” standards required by the regulator, the Care Quality Commission.

However, last week two councils suffered landmark defeats in the High Court over their decisions to cut funding for care and support for elderly and disabled people. Care home providers took legal action against their local authorities and the decision by Sefton Council in Merseyside to freeze its fees for two years was ruled unlawful by the High Court.

Lavinia Newman, Founder of ABDS says:

“The need for good financial planning and business advice is of paramount importance.”

If you need any help and advice on Financial Planning and Reporting, don’t hesitate, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar now to discuss how ABDS can help in all your Business planning.

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail: abds@netaccountants.net

« Back to News