‘Lack of money’ prompts care firms to end council contracts

From the BBC

Care firms have cancelled contracts with 95 UK councils, saying they cannot deliver services for the amount they are being paid, a BBC Panorama investigation has found.

Some firms said they could not recruit or retain the staff they needed.

The Local Government Association said it was the result of “historic under-funding” and an ageing population.

The government declined an interview but said English councils had received £9.25bn for social care.

The figure for the number of cancelled contracts comes from a Freedom of Information request, which was responded to by 197 of 212 UK councils.

According to the research, carried out for Panorama by Opus Restructuring and Company Watch, 69 home care companies have closed in the last three months and one in four of the UK’s 2,500 home care companies is at risk of insolvency.

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