Wirral care homes threaten legal action over cuts in fees

NURSING and care homes in Wirral are warning of a legal challenge to council plans to reduce their fees. Owners and managers fear the reduction could see homes across the borough closing as a result of the drop in their income.

After a huge outcry, Wirral council backtracked over proposals to reduce the money paid to homes by 5% – equivalent to between £18 and £22 a week.

The new recommendation, subsequently approved by the authority’s ruling cabinet, was that fees should effectively be “capped” during 2009/10, at around 98.7 % of the 2008/09 rate.

This would mean around 4% more being paid than had been originally proposed, but owners say the plans will still mean a cut in fees that would leave them out of pocket and could force homes to close. An attempt by Conservatives on Wirral council to overturn the plans to reduce fees was defeated after the cabinet decision was called in for review by a scrutiny committee.

Last night, a representative of Wirral Care Homes Association said nursing and care home owners remained deeply upset and angry at the council’s approach, and they were seeking legal advice to challenge the decision.

He said: “There has been no negotiation.

“If they had said we just can’t afford to pay these fees, can we discuss it, then we would have done that. But instead they just did it.”

The council has said there is an over-supply of residential and nursing home places in Wirral, with around 360 vacancies available at any time. It originally said it wanted to implement the new rates from April 1, with contracts terminated for care home owners who refused to accept them.

Cllr Tony Pritchard said he was disappointed that the scrutiny committee had refused to challenge the cabinet’s decision.

Cllr Pritchard said the cuts in fees could affect the level of care provided by the homes, and could even see some go out of business.

He said: “It will create hardship for these businesses in an already harsh economic environment where they face increasing costs.”

Cllr Pritchard said the cuts would “hit a cross-section of the most vulnerable in our society, from the elderly to those with mental disabilities”. He added: “The council itself had a 4.4% increase in council tax rates this year, and yet they expect these businesses to take a cut.”

A spokesman for Wirral Council said: “This matter has been heavily examined and scrutinised by the Overview and Scrutiny Committees.

“It has since been confirmed by cabinet.

“The director of adult social services, and his team, is now focused on looking forward to rebuilding positive and constructive relationships with care home owners.

“The council remains committed to working with the care home owners to develop a service which meets the needs of people in Wirral for years to come.”