A study by the Centre for Health and Public Interest has revealed that £1.5 billion a year is lost to rental payments, interest on loans and profits. This equates to 10% of the total annual income of the care industry in the UK not going towards frontline services.
The study found that among the 26 largest care home providers, £261m of the money they receive to provide care goes towards repaying debt. Of this, £117m goes to related companies.
The think tank concludes that if the industry was restructured, some of this money could instead go to frontline services.
90% of care home services are now provided by the private sector. Just this year, one of Britain’s largest care home groups, Four Seasons Health Care, went into administration after struggling to repay debts.
Full story on BBC News, 8 November 2019.