New research conducted by business intelligence provider Company Watch has pinpointed a major threat to the UK as one in four UK care homes are classed as financially vulnerable.
The report surveyed over 5,000 companies in a bid to shed some light on a major issue being ignored by the UK Government. Of the 5,000 respondents just under 25% were found to be extremely close to requiring financial rescue. Although the results are shocking, the level of financially vulnerable care homes has actually dropped in the last six months by 18%.
The biggest problems the sector faces are clearly long term, the national minimum wage is set to rise, along with energy costs and the interest rate will not be particularly far behind either, leaving care homes under serious pressure. The report also found that around 12% of care homes are operating within the sphere of the ‘zombie company’; that is they are only surviving through the payment of interest on their loans.