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The introduction of the National Living Wage has increased the financial pressure for care homes, particularly for smaller homes, a report says. Accountancy firm Moore Stephens says 12% of care homes have at least a 30% chance of going insolvent within the next three years.
It says care homes have been under extra financial strain in recent years.

Living Wage costs

Living Wage costs ‘put strain on care homes’

Rising costs and reduced funding from local authorities have come as demand for places at care homes has grown.
Moore Stephens also points out that a report by the Care Quality Commission (CQC) in October showed 2,444 residential care homes closed between October 2010 and December 2015, with 1,433 being smaller care homes.
The National Living Wage, which was introduced in April this year, currently stands at £7.20 an hour for workers aged 25 and over.

‘Unsustainable situation.’

“It’s become increasingly difficult for care homes, particularly smaller providers, to keep up a consistently high level of care while breaking even or worse, remaining solvent,” says Mike Finch, restructuring partner at Moore Stephens.

Read the full Living Wage article here

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Living Wage costs ‘put strain on care homes’ Cornwall

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Living Wage costs ‘put strain on care homes’ Devon

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Living Wage costs ‘put strain on care homes’ Hampshire

Living Wage costs ‘put strain on care homes’ Hampshire, from Ringwood to Basingstoke, The New Forest to Portsmouth and Winchester to Southampton

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Living Wage costs ‘put strain on care homes’ Oxfordshire

Living Wage costs ‘put strain on care homes’ Oxfordshire, from Banbury to Oxford, Bicester to Didcot and Witney to Abingdon

Living Wage costs ‘put strain on care homes’ Somerset

Living Wage costs ‘put strain on care homes’ Somerset

Living Wage costs ‘put strain on care homes’ Somerset, from Bath to Bridgwater, Chard to Minehead and Taunton to Yeovil

Living Wage costs ‘put strain on care homes’ Wiltshire

Living Wage costs ‘put strain on care homes’ Wiltshire

Living Wage costs ‘put strain on care homes’ Wiltshire, from Swindon to Melksham, Salisbury to Trowbridge and Chippenham to Amesbury

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