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Care providers are paying per bed power costs of £4K+

Care providers have faced energy price rises in the region of 683 per cent over the past year, according to new research.

Data from energy consultancy Box Power CIC reveals that as of 24 August 2022, the energy costs of running a care home total £4,123 per bed, per annum. This compares to £557 per bed, per annum, on 31 August 2021.

According to research from the Centre for Health and the Public Interest (CHPI) estimates that pre-pandemic sector profits before tax, rent payments, directors’ renumeration and repayments on loans stood at £1.5bn per year. However, approximated new energy costs of over £2bn per annum will eradicate profit margins generated by running a care home, driving many providers into insolvency and eliminating scope for investment, says Care England.

In response, Care England has made the following demands of Government:

  • The introduction of a per bed energy price cap equivalent to the proposed domestic energy price cap, or the reimbursement of providers for increased energy costs incurred by other means
  • The extension of the £400 energy rebate to vulnerable people in care and supported housing
  • The removal of VAT and the Green Levy on energy bills.

The National Care Association has prepared a template letter for care homes to write to MPs warning of the impact of energy price rises on the social care sector.

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