A watchdog’s report, which warns that the current system for providing social care is no longer sustainable without more funding, should be a wake-up call to the Government, a provider group said today.
The influential Competition and Markets Authority identified a funding shortfall of £1bn a year for care homes because some local authorities are not paying the true cost of care.
Instead, some care home owners have to charge up to 40% higher prices to those who pay for their own care than those whose fees are paid by the councils.
It also warned that uncertainty over future funding was holding providers back from investing in new accommodation to meet the ever-growing demand for care.
The Independent Care Group said the CMA’s report repeated a warning that providers and other influential bodies had been making for years.
Chair Mike Padgham said: “Today’s report from the CMA is welcome and is yet another wake-up call to the Government that the current system is in crisis and unless something is done about it quickly the 1.2m people currently going without the care they need is going to rocket.
“The CMA report identifies issues that we as providers will all have to pay heed to as well, but none are stronger than the need for extra funding in the sector.
“The recent budget contained nothing to help social care and we are now left in limbo, waiting for a Green Paper that won’t come out until next summer.”