Care At Risk

Care England, the largest and most diverse representative body of independent adult social care providers, has today commended the LaingBuisson and the County Council Network for producing its report titled ‘Impact Assessment of the Implementation of Section 18(3) of The Care Act 2014 and Fair Cost of Care.’

Professor Martin Green OBE, Chief Executive of Care England, says:

“Care homes already face uncertainty due to the post-pandemic low occupancy environment, with year-on-year funding settlements by Government stripping care homes of their ability to invest in their businesses to account for our ageing population.  The joint LaingBuisson County Council Network report highlights further that devastating underinvestment will lead to catastrophic outcomes for care homes if not reconsidered ahead of implementing Section 18(3) of the Care Act in October 2023.

Our care home members provide life-changing care to some of the most vulnerable members of society.  Care England supports the ethos behind a Fair Cost of Care for all, but requires Government to listen to the sector which has called for additional funding to support investment in the workforce, and addresses the challenges of excessive attrition rates over 34% and vacancies rising above 10%.  Care home providers want to pay their staff a wage that shows how much they are valued and appreciated and to innovate to provide long-term care for the ageing population, but can only do this if Government reform, sees more of the £12bn raised per year from the rise in National Insurance (Health and Social Care Levy) paid to the Adult Social Care services.”

The report produced by LaingBuisson and commissioned by the County Council Network calculates the cost of implementation at its mid-point at £1.23bn against the provision by Government of just £378m for care homes, leaving providers and councils to foot the remainder of the implementation costs to ensure care home sustainability.

The report simulates the impact of the proposed reform on both councils and care homes.  If no further funding is provisioned from October 2023, the scale of financial deficit could range from £0.41bn to £1.303bn up to 4 times more than has been made available by Government currently, a deficit incapable of being absorbed by both councils and care homes from October 2023.  The LaingBuisson central estimate assumes a 50% take-up of Section 18(3) and would require an additional £0.85bn of funding by Government.

Martin Green continues:

“It feels disingenuous to assure those funding their own care, that they will be able to access the same rates as councils, whilst ignoring the evident gap in current financial provision, against what is required. It is likely that those funding their own care will have to pay top-up payments to bridge the gap between the Government underfunding and the actual cost of providing care.”