Care homes facing 'catastrophic closures' as councils hit by funding crisis

Care homes are staring at ­“catastrophic” closures as social care budgets at councils are on the verge of going bust.

A depressing survey has revealed eight in 10 councils in England are on course to go over their budget on adult social care in this financial year. More than a million people receive publicly funded social care in , including the elderly and disabled.

An emergency meeting was held on Tuesday with care providers and associations across the country to discuss the latest and the impact it will have on the social care sector. The bleak picture has been revealed by the Association of Directors of Adult Social Services.

They warned their autumn survey did not even take account of the further damage caused by the government’s announcement of an employer National Insurance hike. And it is feared that before long all councils will be in the same funding black hole. Their research found a massive 81% of councils are warning they are on course to overspend before next April, up from 72% last financial year.

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Adass president Melanie Williams said the financial situation is “at breaking point”, adding: ­“Councils have a legal duty to provide care for our disabled and older people, but the only way we can do this will be by going further into debt.”

One worried care home boss told the how the cash crisis puts the lives of vulnerable people at risk. Nicola Richards, Director of Palms Row Health Care in Sheffield – who was invited by the late Queen to a garden party in recognition of her ­dedication to the social care sector – said: “The writing is on the wall. Care homes are not going to survive unless the government gives more funding to local authorities.

“This could mean chronic closures, it’s going to be catastrophic and lead to a deterioration in quality. I am sympathetic to local authorities because the government has not given them enough money for decades. It will impact the most vulnerable and their families. To move residents, that’s the last thing anyone wants because they are frail people who need a lot of care. You could see people lose loved ones on the back of it, they are really vulnerable, it’s a big change.”

In 2020 a photograph taken at a Palms Row care home helped inspire the to launch an exhibition capturing the kindness of the nation during the pandemic. Taken at Newfield Nursing Home it featured Jack Dodsley, 79, a Covid survivor dancing with a carer. In the Budget, the government announced £600million for councils – expected to be split between adult and children’s social care.

On top of less funding and NI rate increases, care will also be hit by increases in the NI threshold and the minimum wage. Ms Williams warned: “The new money will end up getting used to cover employers’ national insurance and wage increases. The government know they must sort social care. We need reform, but they must fully fund the increases to keep it afloat.”

Care England said extra costs will leave the sector with “an additional circa £2.4billion funding hole to plug”. The latest Adass autumn survey got responses from 131 of the 153 English councils with social care responsibilities between September 12 and October 9, before the Budget.

Cllr David Fothergill from the Local Government Association said council finances are “under strain like never before”.The Department of Health said: “The Chancellor announced at least £600million of new social care grant funding. We are also increasing the Carer’s Allowance earnings threshold by £2,300.”