Coronavirus: UK home care providers fear bankruptcy amid outbreak

Companies already facing financial strain likely to enter period of acute vulnerability, warns UK Home Care Association

Care providers that offer home support for older and disabled people are worried they could go bankrupt in the heightening coronavirus pandemic, according to a group that represents them.

Companies that were already facing financial strain are likely to enter “a period of acute vulnerability” as services throughout the healthcare system are further stretched, the UK Home Care Association (UKHCA) warned on Wednesday.

With coronavirus continuing to spread throughout the country, home care companies could find themselves short of staff and protective equipment in the coming months, the UKHCA fears. Officials said earlier this week that up to 55,000 people may already be infected.

Although chancellor Rishi Sunak unveiled a £350bn economic package to support “small and large” businesses, care providers are set to be squeezed by NHS England’s recent decision to discharge long-term patients who are medically fit, as part of efforts to free up 15,000 hospital beds.

With more people to care for, and the risk of losing staff to the virus, some companies could be overwhelmed, according to the association.

As well as calling for urgent financial support to train new staff and fund equipment, the UKHCA urged the government to reform the way local authorities pay social care companies.

“We are desperately worried about the ability of care providers to remain solvent, whilst paying unprecedented numbers of care workers who are sick or self-isolating,” Dr Jane Townson, the association’s chief executive, said in a statement.

“Councils and the NHS only pay for care delivered. They will not pay for care workers who are prevented from working. People who buy their own home care will not be able to bear the additional cost of staff absence.”

Under the existing council-run system, local authorities pay care companies at the end of each month dependent on the number of minutes of support provided.

The UKHCA, which represents more than 2,000 care providers, instead wants councils to pay companies upfront.

Some companies have already begun implementing contingency plans to manage their services.

Right at Home UK has contacted retired workers and volunteers to make up the numbers, and current members of staff are taking on additional hours.

Others are discussing the possibility of workforce sharing, both across their own offices and with other agencies.

Caremark said it was working with the UKHCA to “temporarily relax certain regulations to make it easier to recruit staff, whilst maintaining the integrity of our service”.

Managing director David Glover added: “We’re looking at other ways to expand the workforce too, and have a business continuity plan in place which covers pandemics, so we are prepared.”

However, he warned: “If there are staff shortages, clients with urgent or critical care needs may need to be prioritised in some cases.”

Meanwhile, Sir Simon Stevens, chief executive of NHS England, told MPs that the country would need to ramp up the production of personal protective equipment, in particular face masks.