Half of Dudley care providers in survey planning to cut contracts
A Dudley Council report on adult social care says more than half of independent providers are planning to hand back contracts.
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The report, for a meeting of the council’s Adult Social Care Select Committee, quotes a survey by the Care Providers Alliance, which represents independent and voluntary providers.
Providers blame increasing staff costs and say they cannot continue to work for the sums paid out by the public sector.
The report, signed by Emma Matthews, Dudley interim director of adult social care, said: “Financial pressures for smaller care homes and especially those supporting people with disabilities, often means the home cannot survive even with only one vacant bed.
“Dudley is one of the lowest fee payers for older adult care homes when compared to West Midlands average rates.”
There are currently 2,244 care home beds in Dudley however more expensive out-of-borough placements are a big drain on resources; for nursing care, half of spending is out of area.
The council spends around £129m on services from the independent market, 39 percent goes on residential and nursing care homes and the rest is spent on services including supporting people in their own homes or supported living schemes.
About £1.6m more goes to voluntary sector providers but that is being cut by around a third in the 2025/26 budget.
The Care Providers Alliance says 57 percent of respondents to its survey plan to hand back contracts.
A council survey said 43 percent of respondents expected to break even or make a loss while 26 percent anticipate significant reduction in activity or potential contract exit.
The report says for the 2025/26 financial year the council expects to need an extra £11m however using its Market Sustainability and Improvement Fund along with the general fund to cover increases in rates from providers only generates £6.8m.
Committee members at their meeting on March 5 will also debate the council’s Market Sustainability Plan which outlines the authority’s strategy for coping with market pressures.
The plan aims to ensure the council engages in ‘focused discussion with the social care market ahead of council budget setting each year’ and ‘capture feedback and the voice of people with lived experience, their carers and families’.
