Increasingly, there is more and more concern in the sector about provider failure- care firms going bust or retreating from whole sections of the market (esp local authority provision)
Revenues ⬇️ 20%
Labour also drying up- vast majority from eastern Europe and elsewhere
Councils on the financial edge
It's a perfect storm
I'm told that a few providers have already left the market.
Is calculated that in order to pay NLW, meet other requirements, make an operating profit and reinvestment, care providers say minimum would be £20.69 per hour
Money councils provide was falling even before this
Most vulnerable were ergo already losing out vs those who can pay
Covid is adding £3.95 per hour in extra costs to home care (staffing, PPE)
Care homes are losing residents rapidly
Financial nightmare
50% are on 0-hour contracts.
Carers say that min wage should be £12 per h
Next time a politician praises carers, worth asking them if they'd commit to that.
That's the sort of money they'd have to commit to to sort this sector out.
That sort of money can only come from central government.
Think again
80% of dom care is small businesses <50 employees.
Decline in revenues and rise in costs increases insolvency risks for scores of them.
If these companies go bust some of our most vulnerable will suffer.
Loads of people off sick right now. I spoke to one care manager living in fear that just one of his employees gets covid. Many of them live together in shared accommodation he provides. If one gets it, they're all out of action.
For those companies staying in business, as I reported on last week, PPE is a huge issue, many carers are being asked to go into people's homes with almost nothing
This could be catastrophic.
Make no mistake- parts of it could collapse. Decades of neglect, a problem too difficult to think about, is coming back to haunt us.