Care homes at risk from energy bills doubling this winter

A care home with 50 residents on average spends around £50,000 a year on gas and electricity but energy price rises this winter could see them pay double, an energy broker has revealed.

The steep rise is caused by a trebling of wholesale gas contracts over the last five months, energy taxes and uncertainty about supply, according to Steve Silverwood of ECA Business Energy who negotiates energy for care operators.

'100 per cent plus' rises

With care homes not protected by a price cap like domestic consumers, Steve Silverwood told the Guardian: “The care homes that haven’t already purchased energy for forthcoming renewals are going to see 100 per cent plus increases.

“A care home can be spending £50,000 plus [on energy] and to double that is unbelievable. It’s frightening times.”

Care homes are unable to turn heating off and no matter what the price they need it running constantly, which may force providers to cut back on costs in other areas such as entertainment.

The prospect of steep energy bills as well as rising food bills - as gas shortages cause a reduction in carbon dioxide supply which is essential in food and drink production - comes on top of a care staffing crisis, rising insurance premiums and falls in care home occupancy.

'We will be on a cliff edge'

To help address the staffing crisis, care homes will need an extra 35,000 to 70,000 workers as a result of the government’s mandatory staff vaccination rule.

Care home operators have written to the Secretary of State for Health and Social Care Sajid Javid, Chancellor of the Exchequer Rishi Sunak and Home Secretary Priti Patel, to ease restrictions on the recruitment of foreign care workers.

In a letter sent by the National Care Forum (NCF), MHA, Anchor Hanover, Sanctuary and the Orders of St John Care Trust, ministers were told staff turnover was at 30 per cent. An NCF poll revealed 74 per cent of care providers have seen more staff quitting since April 2021 with half of workers leaving due to stress and 44 per cent finding better pay elsewhere.

The government was urged to offer a retention bonus to care staff, in recognition of the dedication they showed during the pandemic and add care workers to the shortage occupation list to enable more overseas workers to work in UK care homes with Skilled Worker visas.

Care operators also want to see the government extend infection control grants, which are scheduled to end this month. Vic Rayner said last week: "We will be on a cliff edge at the end of this month", when the infection control grant comes to an end.

Martin Green, chief executive of Care England, which represents care homes, has said: “Quite simply care providers are at breaking point.

“The writing is on the wall and without immediate help, as given to the NHS, the social care sector will crumple and not be there to support the NHS over the winter let alone in years to come.”