Caring Times, July/August 2018
Accountancy firm Moore Stephens says there has been an 83% rise in the number of care home businesses entering insolvency, from 81 in 2016/17 to 148 in 2017/18.
With many care home places being paid for by local authorities, the sector has been struggling since the Government cut local authority funding during its austerity drive.
Times have been made harder still as a number of recent high profile and complex care-home insolvencies have caused mainstream lenders to be more cautious of providing low cost funding to the sector.
The Local Government Association say that the care home sector faces a £2.3bn funding gap by 2020 and a Competition and Markets Authority (CMA) report highlighted a £1bn shortfall in public sector funding of care homes in 2017.