A record number of care home businesses failed last year as the financial strains became ever more apparent. The Guardian reports that government figures show that 75 care home businesses were declared insolvent in 2016, up from 74 the previous year.
In total 421 care home businesses have collapsed since 2010. The figures cover nursing homes, homes for the elderly, residential care activities for learning disabilities, mental health, and substance abuse. FRP Advisory, the consultancy firm, said that care homes were the only industry in the UK to have suffered from rising insolvencies over the last seven years.
“The fall in sterling against the euro will exacerbate pre-existing pressure on staffing costs in a sector reliant on overseas workers to fill frontline staff vacancies, and where margins have come under increasing pressure from the rise in the minimum wage, pension costs and cuts in local authority funding,” he said.
“The care home sector is beleaguered due to all local authorities facing overall double-digit budget cuts for this current financial year under way and beyond.”