Is there an opportunity in UK social care?
Adult social care in the UK is under threat. It is a rare day that doesn’t carry news of a provider leaving the market, calls for more funding or a premonition of doom. We’ve spent the last month talking to the big players – Four Seasons, Avery, Voyage Care – and a few others to boot. What have we learnt?
For one, there is no one stress on the care industry, there are many and their effects are varied. The Living Wage is driving up costs and creating competition with other employers of low-skilled labour. Property costs, food costs – both are on the rise. Brexit is to come, but agency fees have already driven operators out of some regions.
The bad news, however, is generally known. What’s sneaking under the radar is that profits in self-pay are on the rise.
Fees have risen sharply this year across the country and so has occupancy. Operators are migrating towards the growing market of self-pay with public funds there as a back-up. Luxury care homes are full to bursting point – and so are the wallets of their residents. This is, of course, the era of the triple lock pension and an unprecedented property bubble.
The big question, however, is whether the time has yet arrived to get back into the council pay market. To learn the answer, read the full report next week.
We would welcome your thoughts on this story. Email your views to Claude Risner or call 0207 183 3779.
