Social Services

(asked on 20th July 2021) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, whether he has taken steps to investigate reports of social care companies managed by people who have had multiple business failures.


Answered by
Helen Whately Portrait
Helen Whately
Minister of State (Department of Health and Social Care)
This question was answered on 6th September 2021

Service providers must register with the Care Quality Commission (CQC) and as part of its registration process, the CQC must be satisfied about their fitness and compliance with the requirements of the relevant regulations and enactments. There is no scope within the Regulations for the CQC to assess whether an applicant has had multiple business failures prior to applying, unless they have been registered previously under the Health and Social Care Act 2008 or predecessor legislation. In such cases their regulatory history is taken into account when assessing a new application for registration.

Providers have a duty to have a ‘fit and proper’ person in director level roles and the CQC assesses a provider’s compliance with this as part of its regulatory role. The CQC does not assess directors directly but considers how the provider has appointed them and the checks they have made. Once registered, the CQC can further explore issues relating to character and conduct but has no scope to take regulatory action unless there has been a breach of the Regulations and there are concerns around the safety of residents and service users. In cases where concerns are identified, the CQC will use its enforcement powers on a proportionate basis, in line with its enforcement policy.

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