Crisis talks are taking place later between care home owners and council leaders amid mounting concern that a large number of providers are preparing to pull out of the market. A recent report warned that 37,000 beds – nearly 10% of the total – could disappear by 2020, blaming the fees paid by councils and pressure from the national living wage.
Charities will also be represented at the meeting, with all sides calling for extra funding ahead of next week's spending review. Martin Green, chief executive of Care England, said: 'Faced with increasing costs and falling fee levels, many smaller care providers will go to the wall, jeopardising the care of thousands of vulnerable people.' He added that the meeting in London would discuss contingency planning for mass home closures and the collapse of many small providers.
Unlike the NHS, social care provided in an individual's home or in residential care is not free – only the poorest get help. The number of older and disabled people receiving council help fell by 28% between 2009-10 and 2013-14. The Local Government Association predicts a shortfall of more than £2bn in care services by 2020, even before the implications of the national living wage are taken into account.
Groups such as Age UK and Carers UK will be present alongside big care companies and council representatives. Councillor Izzi Seccombe of the Local Government Association acknowledged prices had been squeezed and further budget cuts could worsen the situation. 'There is already evidence that lack of funding is leading to providers pulling out of the publicly funded care market and shifting their attention towards people who are able to fully fund their own care,' she said.
A Department of Health spokeswoman said future spending on care would be decided by the spending review, but added: 'No-one will be left without care if a home closes. We have put in place new laws which mean councils have a duty to keep their local care market healthy and support anyone whose care service has stopped because of financial failure.'
