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UK care facilities are facing a funding crisis as banks refuse to lend.Social care

Senior care leaders warn that care facilities are facing a credit crunch that banks refuse to lend money or offer new services and are afraid that the care sector is about to collapse.

According to a survey of Hampshire care providers, 20% said banks were concerned about their long-term viability. Banks also reported that they had “no desire for the long-term care industry” and refused basic services such as additional accounts.

Nadra Ahmed, chair of the National Care Association, said other providers are under similar pressure. “We haven’t seen any research, but I know these conversations are starting to take place with all banks across the country. Some are a bit more aggressive than others. Sure, I hear providers are starting to feel pressure. “

Care providers are hesitant to reveal issues to local government clients and the Care Quality Commission for fear of special action or loss of care contracts. Almost half of the care homes that responded to the Hampshire Care Association (HCA) survey said they were concerned that the current crisis could put them at high risk to banks and creditors.

The fifth reported that the bank or creditor was in contact to raise these concerns directly. Some banks were supportive, while others were under pressure, including sending “blackmails,” one provider expressed concern about the long-term viability of care providers. ..

The report cited providers who said banks did not want to work with adult social care organizations. “”[We were] The bank said it had no desire for the long-term care industry, “said one provider. “”[They raised] Concerns about the longevity of care homes as a viable business, “said another.

Andrea Pattison, a member of the HCA Board who led the investigation, said: “This is not just a matter of one or two banks, or one or two providers. Most of the sector is made up of small businesses, and the government eliminates or allows banks to eliminate viable businesses. Interventions are needed to prevent imposing adverse conditions and withdrawing funds.

“If you don’t do that, it will pose a threat to the entire adult social care sector, and thus to the NHS. The NHS relies on providing us with great care.

“I was shocked to hear that the provider said the banks weren’t interested in social care as a sector. That was very worrisome.”

Ahmed said the social care crisis is becoming more serious. “The resilience of pre-Covid providers was compromised by the PPE blunder and everything we experienced before funding became available,” she said. ..

On September 30, the £ 600m pot of infection control fund paid to social care company PPE will end. “I’m still not sure if that will continue,” said Care England, an industry group.

Gas price crises and labor shortages are also putting pressure on social care, Ahmed said. “Heating doesn’t work in a care environment,” she said. “This is time to calculate. As an urgent matter, the Minister of Health should consider creating a sustainable social care market and bridging the gap between resources and demand-labor as well as money. Power too. They are exhausted and worried and are offered better paid jobs as Amazon delivery drivers. “

The study comes after months of concern in the sector that inadequate financial support during the Covid pandemic will shut down long-term care facilities and home care providers, leaving vulnerable people uncared for.

According to LDP analysis, social care services are facing a £ 1.7 billion Covid black hole. The UK municipality spent £ 3.2 billion on adult social care in the first year of the pandemic, funding PPE, additional workers and additional demand. Still, according to Liberal Democratic Party figures based on a survey by the House of Commons Library, only £ 1.49 billion received additional Covid-19 funding from Westminster.

“Currently, more than 1.5 million people are missing out on the care they need, many are stuck in hospitals and cannot be discharged due to lack of follow-up care,” said Munira Wilson MP, health spokesman for the LibDem. I am.

UK Finance, which represents the bank, said the survey did not reflect conversations with people in the sector. A spokeswoman said: “Lenders understand the current pressure on the social care sector and are actively supporting viable businesses. As responsible lenders, financial providers regularly contact their clients to determine their status. Check and see if you need help. “

The government said it would encourage banks and creditors to take a flexible approach to their customers. Local governments will have access to sustainable funding for their core budgets in their spending reviews.

A government spokesperson said: “We are committed to providing world-class social care, and the new £ 5.4bn funding for this sector will bring about sustainable and future-friendly comprehensive reforms.”

UK care facilities are facing a funding crisis as banks refuse to lend.Social care

Source link UK care facilities are facing a funding crisis as banks refuse to lend.Social care

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