Care home bosses facing 'rocketing' food bills call on councils to pay 'true cost of care'

Care homes are facing "frightening challenges" which include "rocketing" food prices and energy bills as well as insurance premiums 400 per cent higher than pre-pandemic levels, prompting care chiefs to demand local authorities deliver the true cost of care.

The report published by the Care Provider Alliance (CPA) reflects care providers’ fears concerning local authorities' Fair Cost of Care Process. Providers worry that energy prices are three to four times what it was 12 months ago and food inflation is over 15 per cent of total costs currently for care homes.

Food inflation has been significantly impacted by the war in Ukraine, rising energy prices and most recently the dry weather resulting in reduced harvest and crop yields.

Evidenced in a recent survey covering 21,000 beds was a 15 per cent increase overall to food-related costs, due to the higher usage of more inflation-impacted food used in care facilities to maintain nutrition and wellbeing.

Care England warn there is “no room for further excuses” and councils must focus on “solutions” required to “address the provision of funding” for care homes.

Martin Green, chief executive of Care England, said: “This report evidences the significant pressures care providers are currently operating under.

“It is now incumbent upon local authorities to recognise these pressures in their Market Sustainability Plans due to be submitted to the Department of Health and Social Care on 14 October, to reflect the current and future reality of the sector to sustain the workforce and financial viability, whilst also to address the impact of rising energy and agency costs, as well as rising inflation.”

The report also showed vacancies in the care sector have increased by 52 per cent in the last 12 months against a 48-year low in unemployment and 60 per cent of providers said they will need to increase staff pay in addition to their annual pay rise due to the cost-of-living crisis.

’The government cannot ignore these issues’

Alongside Cost of Care exercises, local authorities are required to develop and submit a provisional Market Sustainability Plan, which will be followed by a final Market Sustainability Plan when local government budgets for 2023 to 2024 have been confirmed.

The Independent Care Group (ICG) which represents care homes praised the CPA for creating a report that “lays bare” the challenges facing the sector and said this latest evidence of a sector facing frightening challenges cannot be ignored.

Mike Padgham, chair of the ICG said: “Here, the CPA very plainly and clearly shows that the level of staff vacancies, the struggle to recruit staff and the rocketing costs of energy, food and insurance, amongst other issues, are creating a very difficult playing field upon which to deliver good, sustainable care.

“It is an excellent report by the CPA but makes very difficult reading. It does however give local councils vital ammunition to go to the government and say, in realistic terms, what they need to deliver social care in the current economic climate.

“The government cannot ignore these issues and hope they will go away.”

Nadra Ahmed, the CPA chair who was appointed earlier this month, said: “The pandemic has shown just how vital social care is for people to live well in our communities.

"We are on the brink of another complex and challenging winter along with a cost of living crisis the stark realities of how interdependent social care and the NHS are will be further highlighted.”

To read the full report, click here