Care Homes

(asked on 6th January 2016) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health, what contingency plans his Department has for the event of a major care home provider ceasing operations.


Answered by
Alistair Burt Portrait
Alistair Burt
This question was answered on 15th January 2016

Local authorities retain responsibility for managing provider failure in the social care market. The Government has worked with the Association of Directors of Adult Social Services and partners to publish guidance to support local authorities to develop contingency plans for managing the failure of a social care provider in their local area. The guidance can be found at:


http://www.lgiu.org.uk/report/care-and-continuity-guide/


Research by the Local Government Association (LGA) suggests that as of September 2015, at least 95% of councils have contingency plans in place should a major local provider go out of business. This research is available at:


http://www.local.gov.uk/documents/10180/6869714/2015-08-11+Stocktake+4+Full+Tables+%28Final%29.pdf/f9826461-aaf1-4c86-b5aa-994d2046e80c


The Government will continue to work with local authorities to ensure they have effective and up to date plans in place.


The Care Act also gave the Care Quality Commission (CQC) a new function to oversee the finances of care providers which are either large or whose provision is geographically concentrated as their financial failure would make it difficult for local authorities to discharge their statutory responsibilities.


The oversight function will provide early warning to relevant local authorities in the event that one of these providers is likely to fail and their services cease. This will allow local authorities time to implement contingency plans.


The Government is working with the CQC and the sector to monitor risks to the system and will develop bespoke contingency plans to support local government to manage provider failure, where appropriate.


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