South West care homes warning of dementia funding crisis

South west care home owners are warning many could be forced to close due to insufficient funding for people with dementia.

They said an overhaul of the system was needed to make sure elderly people have access to the right care.

Figures seen by the BBC showed a disparity between council-funded places across the region.

The government said it was spending up to £700m on adult social care reform over the next two years.

Some Devon care home owners warned if they could not afford to take on residents whose fees are paid for by the local council, then they may only be able to accept privately-funded residents.

Simon Spiller, an owner from Newton Abbot, said: “Increasingly we are struggling to make ends meet on the government funding… this is not a real problem that’s around the corner, it’s here now – care homes are closing.”

This is not the first warning that dementia care funding is in crisis – nor will it be the last. But we haven’t compared individual council funding in the South West so explicitly before.

Many councils offer some leeway in their funding of care home placements – for example Devon and Dorset Council both make it clear that all the figures they have provided are a minimum, and they tailor funding to an individual’s needs.

But ultimately every council has limited means, and its ability to raise its own funds for things like social care is dictated by national policy.

The real fear here, is that council funding for dementia placements in care homes does not match the costs that care homes are facing, and care homes in council areas that are poorly funded, are getting an even worse deal.

Some care home owners say that soon they won’t be able to afford to take on council funded residents, resulting in families from the region’s poorest areas having to take it on themselves.

Six care homes have recently closed in Plymouth.

The BBC found the city’s council paid the least for a residential placement with dementia care and a nursing placement with dementia care. 

It paid £500 less than Devon County Council does for every nursing placement.

Geoffrey Cox, managing director of Southern Healthcare, which owns four care Devon care homes, said: “If we had just our Plymouth nursing home… and we were reliant on just the city council, how would the business look if it were standing purely on its own? I think it wouldn’t be a very strong case to put to a bank to be honest.”

A Plymouth City Council spokesperson said its funding for residential and nursing care “had increased by 8.5% this year” and that they work with care homes “to adapt and develop the services to ensure they are able to meet the needs of local residents”.

Council funding of care home places rose this year – at some local councils by as much as 35% – following a “cost of care” exercise initiated by the government. 

A Department of Health and Social Care spokesperson said: “We are fully committed to our 10-year vision to reform adult social care, and recently published our Next Steps to put People at the Heart of Care plan – setting out how we are spending up to £700m on adult social care reform over the next two years.”

Ian Preston whose mother is in a Dawlish care home, said: “Mum is self-funding, so she had a certain amount of money available and we’ve now just sold her flat so obviously that all goes into a pot.

“I wish there was some other solution because I think it’s a little bit unfair that what she has chosen to do with her money when she dies won’t be available, it will all be gone into care”.

Mike Guy, whose wife is in a care home, said: “The system is, like so many systems, broken, completely gone, shattered.”