Magazine article Public Finance

Scots Councils Offer Care Home Funding Deal

Magazine article Public Finance

Scots Councils Offer Care Home Funding Deal

Article excerpt

Scottish local authority leaders are hoping to prevent the closure of residential and nursing homes in Scotland by offering owners a £57m funding deal.

The future of some homes has been in doubt as a result of a long-running dispute over fees paid to private owners. In some cases, these have been charging residents 'top-up' fees to bridge a funding gap. Owners have warned that homes faced closure unless fees were increased.

The deal, agreed by council leaders, will be funded mainly by the Scottish Executive through councils and from benefits paid by the Department for Work and Pensions.

Fees will be increased by 10%. In return, owners will be required to agree to the monitoring of standards and guarantee they will not charge top-up fees in future.

Under the scheme, fees paid per resident for nursing homes will go up from £427. …

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