Care homes and a looming crisis

The FT's Jonathan Eley writes that the "economics of care" are miserable. Four Seasons is lossmaking because a lot of care is paid for by local councils, he claims. Facing substantial cuts in budgets, local authorities have reduced the fees they pay to care home operators and are being more demanding in their judgment of who needs care. Also, running costs are rising, claims Mr Eley: "Ahead of the Autumn Statement, George Osborne may currently be preoccupied with ways to extricate himself from the tax credits brouhaha, but the looming crisis in social care could turn out to be just as damaging," he concludes.