Local Authorities concerned about the financial viability of care homes

98% of local authority social services departments say they have worries about the financial sustainability of residential and nursing homes.

Of those who had made assessments to determine the costs faced by care providers, they found at least a quarter of fees paid to residential, nursing or extra care providers were below the actual cost of providing care.


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In 2020/21, local authorities spent £7.8 billion on long-term support for older people, of which £4.8 billion was on nursing or residential care, £2.9 billion on community support, including home care

Each local authority has an amount which they will pay for a given care need. This might be an hourly rate for home care or a weekly fee for residential care. Not all care providers will accept this r