Care chief warns 683% price increase in fuel bills 'pose severe threat' to social care sector

Care England has called for immediate government action to prevent a widespread catastrophe with providers facing a "staggering" 683 per cent increase in energy costs over the last 12 months.

Figures released by the representative body and consultancy Box Power CIC reveal a 683 per cent increase in energy costs for care providers between August 2021 and August 2022. To secure energy supply from October this year, it has increased from £660 per bed, per annum in August 2021 to £5,166 in August 2022.

Based on October 2022 market rates, and with 454,933 CQC registered beds, the approximated impact of the rising energy prices over the last year on the sector is over £2bn per annum.

Professor Martin Green, chief executive of Care England, says: “Today’s figures illustrate the true scale of the energy crisis facing adult social care.

“Representing an additional cost of over £2bn per annum sector-wide, the energy crisis comes at a time when adult social care is already facing the most challenging circumstances in its history. Current packages of government support ignore the social care sector entirely.”

The government’s energy support package will see households start to receive £400 off their energy bills from October.

However, Professor Green says that despite providers paying the same VAT and Green Levy rates on energy bills as domestic settings, they "are not set to benefit from the £400 energy rebate”.

He adds: “While these measures are incredibly important to protect public health and support struggling households across the country, parity must be introduced in the treatment of the most vulnerable in our communities.

“Without immediate and targeted support from the government, this energy crisis poses a very severe risk to the sustainability of care services across the country.”

Care England has written to MPs calling for immediate and targeted support from central government to the sector saying that the ‘exponential increase’ in energy prices comes at a time when the sector is already experiencing the most challenging circumstances in its history, with rising vacancies, poor staff morale and wages among the lowest in the economy.

‘Many are leaving to seek careers in higher paying, less skilled sectors. Investors are seeing opportunities outside of the care sector and lenders are offering less favourable terms to care providers. Put simply, the fragility of the adult social care sector means that it lacks the scope to absorb the costs associated with energy price rises.’

Professor Green said: “Decades of neglect and chronic underfunding have taken a toll on all aspects of the social care system – affecting providers, service users and the workforce alike. For years, those of us within the sector have spoken about social care as approaching a ‘tipping point’.

“The energy crisis being witnessed today may be what finally pushes it over the edge. While long-term reform is undoubtedly the responsibility of the incoming Prime Minister, action is required immediately to avoid widespread catastrophe.

“I implore the government to issue targeted support to care providers immediately, proportionate to the scale of the crisis".