UK care homes are at risk of facing financial ruin due to the introduction of the Living Wage in April, with the sector predicted to hit a £500m funding gap next year, according to data by Four Seasons. This comes as Company Watch, the UK's largest care home operator, revealed last week widening losses as a result of rising costs and lower occupancy; and care home operators and charities claiming that as many as half of the UK's care homes could go bust next year unless the government increases financial aid to local authorities. Britain's care homes, of which 90% are privately owned, have already been hit by a 6% real-terms reduction in council fee rates since 2011, in a climate of rising energy bills and rents. Staffing costs are also being affected by a decline in student places and tighter immigration restrictions.
UK care homes are at risk of facing financial ruin due to the introduction of the Living Wage in April, with the sector predicted to hit a £500m funding gap next year, according to data by Company Watch. This comes as Four Seasons, the UK's largest care home operator, revealed last week widening losses as a result of rising costs and lower occupancy; and care home operators and charities claiming that as many as half of the UK's care homes could go bust next year unless the government increases financial aid to local authorities. Britain's care homes, of which 90% are privately owned, have already been hit by a 6% real-terms reduction in council fee rates since 2011, in a climate of rising energy bills and rents. Staffing costs are also being affected by a decline in student places and tighter immigration restrictions.