Care firms say multi-million funding not enough to tackle rising costs

Sanjay Kaushal said he believes despite increased funding some care firms may go out of business

Care firms say a multi-million pound funding boost is "insufficient" for them to cope with steep rises in costs.

Norfolk County Council has promised that care providers in the county will get an extra £30m this year.

The Norfolk Care Association (NorCA) said it feared some members may still go out of business, despite the rise.

However, the government said local authorities have been guaranteed funding to help them plan for "the long term".

The council said it had increased spending to £374m to help care companies cope with rising costs, caused by inflationary pressures.

Care firms are facing soaring energy costs and a recruitment crisis

Sanjay Kaushal, a director of NorCA and owner of six care homes, said that the sector was going through the "toughest period" he had known.

"We do welcome the £30m," he said.

"That will go some way of trying to address some of the funding crisis in the social care sector".

But companies were facing a recruitment crisis and some have seen energy costs triple, which was "absolutely crippling", Mr Kaushal added.

"My feeling is that with this continual pressure… people might start to feel it's actually time to leave the care sector," he said.

In a consultation with the care firms it has contracts with, 85% of firms told Norfolk County Council the extra funding was "insufficient to meet their costs".

"People always like more money, I wouldn't expect them to say anything else," said Bill Borrett, Conservative cabinet member for adult social care at Norfolk County Council.

"We've evidenced our position here and why this money will make a real difference."

Mr Borrett added that he would like the government provide more certainty over future funding for local authorities.

A spokesman for the Department for Levelling Up, Housing and Communities (DLUHC), which provides council funding, said more than £7bn will be available to councils for social care in the next financial year.

A two-year funding guarantee has been announced to allow councils to "plan for the long term", the spokesman said.