Care homes 'let down' by years of underfunding

Admissions into care homes have dropped substantially, with many homes operating at a 50 per cent occupancy, meaning many are ‘haemorrhaging’ money.

Funding for care home placements is made up of contributions from the local authority, the NHS and the resident – depending on their financial circumstances. Local clinical commissioning groups (CCGs) also pay towards continual health care (CHC) - for residents who need palliative care or have very complex needs.

The amount Bristol, North Somerset and South Gloucestershire CCG pays towards CHC has stayed at two per cent over the past two years, which care homes say amounts to a cut in ‘real terms’.

Gordon Butcher, regional chairman of the Registered Nursing Home Association, said: “The vacancy levels across the whole sector are at unprecedented lows.

“Some homes are operating at 50 per cent occupancy; a figure that is unsustainable. The last 20-25 per cent occupancy is where nursing homes make a profit, anything fewer than 75 per cent means the home is bleeding money; at 50 per cent it’s haemorrhaging, with life expediency limited.

“The recent funds released by the government have acted merely as a band aid and only covered a very small area of the overall costs brought on by the pandemic.”

He added: “Historically the CCG has matched the council in the amount they calculate for fee increases. The past two years when the council gave a five per cent increase, the CCG gave only two per cent.”

Mr Butcher said the difference between the current funding and the cost of care is more than £200 per week.

More: Care homes face huge rise in insurance costs due to pandemic.

BNSSG CCG said it recognises the significant support care homes and staff are under. A spokesman said: “In line with national guidance and the local council during the first wave of the pandemic, we increased fees for longer term health support in care homes to provide extra support during this time.

“Alongside this, we have worked closely with local authority colleagues and put in place support measures including mutual aid for PPE provision, specialist support from nurses, care provider leads, and experts in infection control, as well as training for care staff.”

The Government announced a new health and care white paper last week, to try to address funding issues and join up services. However, North Somerset Council leaders say it fails to provide a solution for sustainable long-term funding and that care homes have been ‘badly let down’.

Cllr Mike Bell, deputy leader of North Somerset Council whose portfolio includes adult social services, said: "Successive governments have underfunded social care and failed to deliver the sustained investment needed.

“We have already had eight consultations, four white papers, two inquiries, many independent reports and 23 different ministers responsible for care. Not one of them has tackled the issue and given social care parity of funding and esteem with health care.

“Without government action and investment, care providers won't get a fair deal and those who must pay for their own care will continue to be short-changed."

Cllr Bell said the authority recognises the extra financial pressures Covid-19 has had on care home providers.

He said: “We have distributed more than £10million to local care providers during the crisis, and provided substantial support particularly in the supply and distribution of PPE.

“While there has been a spate of government-specific grants to the sector that will have alleviated some of the cost pressures, future funding does remain uncertain.

“Without more clarity around the future funding of adult social care, our capacity to address all aspects of the current challenges facing providers is limited. What we can say is that we will prioritise the sector and provide as much support as we can.

“At the moment we are working on financial assistance with several providers which have experienced exceptional outbreak costs and will do all we can to support the care home market restore public confidence in care homes as a safe and secure setting to live, now that the vast majority of residents and staff have been vaccinated.”