Care companies handing back contracts

In this area the LA has just closed the last of the care homes it ran, saying they can get a similar service in the private sector.

In the past LA were the main providers of both home care and much of the residential care. However their staff pay rates are negotiated by unions and are considerably more than the private sector pay. So sadly LAs have been exiting the provider market to become Commissioning only Authorities, a sad effect of the market economy, and in the end a money saving decision.

I wonder whether this problem will get worse as more and more of the people doing these minimum wage care jobs return home as they are unsure what things will be like after Brexit. My niece works in a care home in North Wales and says that almost all the community carers she works alongside are from Europe and are very very concerned.

I might be wrong, but it's my understanding that it's home care, rather than care home, providers who are handing their contracts back.

I can understand that they can't cover their costs, particularly in rural areas, where the time spent travelling to and from each client can be two or three times the time spent with the client. Councils only pay for the contact time.

The companies are paid about £15 an hour, so if a care worker is paid minimum wage, much of that will be taken up with wages, NICs, insurance, training, holiday pay, etc. If one half hour appointment takes an hour's travelling time, the agency is goingto end up out of pocket.

I know where we lived in Wales the LA run home was far better than the private run ones. I had heard from neighbour's about how good it was and when my friend was looking at finding a place for her mother she had very off hand treatment from several private places. When she went to this place she said the atmosphere was totally different and the staff had all been there for years.
I wonder why more LAs don't have their own places.

I'm hopeless with links but from the Guardian newspaper a couple of days ago

Ninety-five UK councils have had home care contracts cancelled by private companies struggling to deliver services on the funding offered, an investigation has found

As a result, a quarter of the UK’s 2,500 home care providers were at risk of insolvency, and almost 70 had closed down in the past three months, according to the BBC’s Panorama programme

Seems like the LA's are not paying enough for them to even cover their costs.

I suppose it is about choice. The person should be able to choose whether or not to go into a care home. But I also think that if we own our homes we perhaps need to put our hands in our pockets when it comes to care in later life.

I'm not so sure about that mind you petra I am trying to find out how much the companies are paid by the LA's per visit and I suspect it is the least possible they can get away with. I got quite friendly with two of my DGM's carers who were on minimum wage and expected to travel in between visits for free (in their own time) which is rubbish when they are doing 10 or more visits per day. The cost of employing someone is much higher than the hourly rate they are paid.

Actually my DGM was very lucky Welshwife as she was able to stay in her own familiar surroundings until she died aged 99. She enjoyed her TV, reading and listening to her radio. She had carers coming in 3 times a day and I visited her virtually every day too. She had been quite active in the Catholic Church and enjoyed visits from the priest (not my cup of tea but it gave her a great deal of comfort) and other church members too. So I would say all in all it was ideal for her. I can understand those who are not fortunate enough to have family and friends to visit might be better off in residential care though.

Gilly I sort of agree with your sentiments but how was your GM with regards to being lonely? I have a widowed cousin who lives on her own and does have someone going in and has family who visit but is still very lonely - whereas I know a couple who were living in their home with carers a couple of times a day and meals on wheels etc but have just sold up and gone into a care home and they absolutely love the one they are in and it has given them a new lease of life. They have care and company 24 hours a day. I think they are fortunate with the home they are in as it is run as a charity and there is not a discernible 'home' feeling to the place but more like an old hotel. The food is good and they have lovely surroundings and plenty of nice people around them. They are late 80s.

I would replace not covering their costs with, not making enough profit.