'You can't understate the care sector crisis'

Close up of health care worker holding hands with senior woman at home - stock photoImage source, Getty Images

At a glance

  • Care providers say the sector is in 'crisis' due to soaring energy bills

  • It comes as the government announces a six-month price cap for all UK businesses

  • The National Care Association said the cost of living crisis was "really worrying"

  • Published

A care home provider that was facing energy bills of up to £1m a year has said the crisis facing the sector "cannot be understated".

Geoff Butcher runs six care homes in Herefordshire and Worcestershire and said reducing energy use was not an option as residents needed to be kept warm.

On Wednesday, the government announced a six-month price cap for all UK businesses that will see bills halved, compared with predicted levels.

The National Care Association has called for longer-term action and said the cost of living crisis was a "really worrying" time for the sector.

Image source, Getty Images

Mr Butcher said he was "grateful" the government intervened, but said the support still did not go far enough.

"It's cut the projected increase, but the increase is still three or four times what it was last year," he said.

"Various different bodies are forecasting somewhere between 15-30% of the care sector is at risk of going out of business.

"This isn’t us crying wolf, you can’t understate what a huge crisis this is across the whole sector."

The National Care Association's vice chair, Joyce Pinfield, said she wanted to see care homes considered as domestic residences rather than businesses.

"We look after people as if they’re in their own homes," she said. "So why aren’t we considered the same as the domestic market?"

She also criticised the government's support package, saying six months was not long enough.

"How can providers work out their business plans? How can you look at the future as what will be affordable?

"We need security for at least two years."

Mr Butcher agreed and said six months of support "doesn't help us plan".

'Peace of mind'

Wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas.

Prime Minister Liz Truss said the support would provide "certainty and peace of mind" for businesses.

However Mr Butcher accused the government of "platitudes and words that mean nothing".

"I’m afraid we’re just deeply sceptical of anything that we are told."