Our Involvement in Change
Crisis in the Social Care threats the fragility and future sustainability of the care market and particularly care homes, and will without a doubt compromise the respect dignity, health and wellbeing of older and disabled people, their families and carers, the workforce and the economy.
Demand is growing and resources are reducing and currently £1.1 billion is needed to provide the same level of social care services as 2014, when the whole care industry faces greater funding issues than 2011 during the Southern Cross chain collapsed.
There is a national concern that care home providers will exit the market, as they are already additional heavy burdens from:
- Wage pressures, especially now they have been forced to implement the increase in the new National Living wage for staff
- Experiencing high staff turnover and need to find up to a million more care workers by 2025.
- Facing issues of poor quality caring that put people’s health, safety and wellbeing at serious risk
- Facing shortfalls that could see care home residents being forced out and falling back on NHS facilities
Additional concerns that could also lead to a reduction in care providers and care homes are the impact:
- The conclusions from the last Government’s Spending Review November 2015 that £22bn need to be found in efficiency savings
- £12bn in Welfare Savings at this time.
Quotes: According to Care Home Fees and the Analysis Market Fees 2015/2016 and www.adass.org.uk
- The number of people aged 74-84 in the UK is projected to grow by over 800,000 and the over-85s by 400,000 between now and 2021.
- Over the last 18 months capacity in the market rose by 3,600 beds to an estimated 487,800 residential beds nationally. However, demand over the same period rose by 10,000 to an estimated 432,000 beds.
- Average fee levels are approximately 4.8% down in real terms over the last 3 years.
- The big four national care providers account for 18.4% of the national market and in localised areas this can be more than 25% of the market.
- As high levels of occupancy remain a key challenge for smaller care homes which need a consistently high level to survive, many are considering taking residents with increased care needs. Although this is likely to have a positive impact on occupancy levels, the home must also take into account the potential impact on increased staffing costs and the risks associated with residents with increased care needs.
- Going forward we expect another increase in the National Minimum Wage to increase (effective from 1 October 2015) to impact on a high number of operators, together with additional pension costs following the implementation of Auto Enrolment.
- Although wage inflation in the UK is currently only running at 1.1%, as many of the staff who work within care & nursing homes are working at the National Minimum Wage level the increases to staffing costs have been more significant.
- Many Councils have kept provider fees frozen for a number of years meaning a decrease in real terms.
- 53 care homes were closed by the CQC in 2015 and 41% of community-based adult social care services, hospice services and residential social care services inspected since last October were inadequate or required improvement
- Earlier 2016 the CQC was receiving more than 150 allegations of abuse of the frail and elderly in social care settings every day, prompting Sutcliffe to warn that a broken system was turning good people into bad carers as a consequence of poor working conditions, a lack of training and inadequate staffing.
It would appear that the funding crisis in the care home market has been fuelled by a number of accumulated factors, which include:
- Fewer people are receiving state funded support
- People’s needs are growing more complex
- The care market is fragile because it needs more funds from investors or the government
- Quality is compromised:
- The labour market is challenging
- Insufficient social care that is increasing pressure on the NHS It is also the provider’s commercial potential to be value for money, and for sustainable successful to their care management, staff, shareholders and the people they care for and their families.
The Foundation intends that Holistic Kindness in Care will be at the front of safe and trusted caring by its engagement with people and sharing communications and relationships. It is dedicated to consistent individual outstanding care and choices for People and their Families, and the promotion of Carers with exceptional emotional and psychological support for the people that they value and cherish.
The Foundation understand the whole economic restrains in social care, but, based on the credible evidence it has gathered, it also believes it is unacceptable that the UK faces such a crisis when delivering Holistic Kindness In Care is actually the line blood that would bring cost savings.
The Edith Ellen Foundation intends to ensure that Holistic Kindness in Care is that ultimate consistency that attracts recognition and Staff and Client loyalty to makes a beneficial culture change happen, which will bringing better understanding and a more genuine sustainable care future, for everyone delivering and receiving care.