Rise in care homes going out of business, research by accountancy firm Moore Stephens finds
In my view this is just the start as care homes are the first, as it will not be long before this is occurring in supported living and home care service providers, if not already. While it is good that there is the national living wage, even though it is not sufficient, the bench mark should be the Living Wage.
These providers are having to pay their staff the national living wage when the Government is reducing funding to local authorities, who then are short of funding to allow these providers to increase their fees accordingly. Care is in crisis.
Before closure the care homes, and service providers could try to reduce their overheads by cutting training, however this and any other cut backs will result in a reduction of quality, which no one wishes to see, as in some areas quality is only just being achieved, if that.