CMA reports on fragility of care sector

Date: 21-12-2017 Ref: News 19/2017

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carer and elderlyIn her latest blog post, Thorngate Churcher Trust chief executive, Anne Taylor writes how the Competition and Markets Authority's (CMA) latest report warns of a sector on the brink of collapse.

On 30 November 2017, the CMA published its Care Homes Market Study, reporting on residential and nursing care homes for older people. The CMA report addresses serious issues of non-compliance in care homes, but what has rightly hit the headlines is the focus of the report on the fragility of the residential care sector.

Blunt in its analysis, the report highlights the CMA’s assessment is that there is currently a £200 to £300 million shortfall in public expenditure on care across the UK, and by 2025 this will have risen dramatically to between £1bn and £2bn and that new care homes are being built only in areas where care home providers believe they can access self-funders.

The report concludes by asserting that significant reforms are needed to enable the sector to survive in its existing position. Anne points to the CMA's own very readable post about the report in its own Blog.

Anne reminds us of the eagerly awaited government green paper promised for summer 2018, but wonders whether it will offer a deliverable solution to a growing problem.

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