The consultancy firm, FRP Advisory, have been reviewing numbers released at the end of April by the Government’s Insolvency Service. Analysts have found that the number of care home insolvencies have been steadily rising each year, with no less than 75 care home business failing last year and 421 having gone bust since 2010.
Care homes are the only industry in the UK to have endured rising insolvencies in the last seven years.
There has been a 40 per cent rise in residential care homes specialising in learning disabilities, mental health and substance abuse with 14 going bust in 2016. A 40 per cent rise, when compared to the previous year.
Years of cuts to social care budgets has led to care home being offered low fees by councils while they deal with costs such as a higher wage bill following the Government’s introduction of the Living Wage.