Transfer of Suffolk's local authority care homes to Care UK put on hold

The transfer of Suffolk’s local authority care homes to the private equity-owned healthcare company Care UK, has been put on hold after Labour councillors called for the plan to be re-examined.

Under the plans, 16 care homes and eight wellbeing centres are to be transferred to Care UK, which has pledged to build 10 replacement new care homes and 10 new wellbeing centres through a £60m investment programme by 2016.

Over 1,000 council employees will transfer to Care UK and will be employed on their existing terms.

However Suffolk County Council's Labour Group has demanded the ‘call in’ of Suffolk County Council's decision to transfer its residential homes to the private sector.

A special meeting of the scrutiny committee will be held within the next two weeks to consider the matter.

Labour Group Leader Sandy Martin said: “Although the Tories have the votes on Scrutiny Committee to force through privatisation of Suffolk's care homes, it is right that they should be held to account.”

Cllr Martin, who has a number of concerns over the plans, said: "The finances were not clear. The County Council is giving the homes to Care UK, in return for a reduced price on the places provided by Care UK. But it was unclear whether the county council would save money from the privatisation."

He added: "If a multi-national company is brought in it will have a profound effect on the ability of the existing smaller care home providers in Suffolk."

Labour councillors are also nervous due to the collapse of Southern Cross last year and want to make sure a back up plan is in place if Care UK gets into similar financial trouble.

Councillor Colin Noble, Conservative cabinet member for adult care, said the call-in has been made for “political reasons” but welcomed the chance to go through it again with the scrutiny committee.

“We have spent two years going through this process and looked in great depth at Care UK,” he said.

“This is a landmark deal in which we’re bringing £60m of new investment to care homes.”

The scrutiny committee, which has a Conservative majority, will review the transfer decision and, if it has any recommendations, it can send them back to the cabinet.

The council’s existing care homes were mainly built in the 1960s and 1970s and the council says they are ‘not fit for purpose’.

Castleoak, a developer that works exclusively in the care sector will construct the new care homes and wellbeing centres for Care UK.

Toby Siddall, Care UK’s residential care services managing director, said: “Budgetary pressures, growing demand for places in homes and higher expectations of quality are giving local authorities quite a challenge in terms of council care home provision at the moment. Suffolk County Council has selected an innovative solution that I believe is unique in the sector.”

While Frances Gibson, Care UK’s director of nursing and clinical and care governance, said the new homes will be “light, airy, with en-suite facilities in every room and dedicated activity coordinators whose job it is to find out what residents like to do and arrange events, hobby sessions and visits for everyone.”

The transfer was due to take place on 1 November.

See Rachel Baker’s story at www.carehome.co.uk/news/article.cfm/id/1558197/older-peoples-care-in-suffolk-to-receive-sixty-million-for-new-care-homes-and-wellbeing-centres for further details.