Charities meet government funding shortfall for care homes

Charities that run care homes for older people are paying
significant sums towards the costs because of a shortfall in
government funding, writes Katie

Charitable support for older people mainly funded by the state
rose by 19 per cent during 2000/01, according to a report by Paul
Burstow, Liberal Democrat spokesperson for older people.

‘Cap in Hand’, shows that on average, charitable care homes
subsidise 51 per cent of their residents with the average weekly
top up payment in 2001 costing £106 per resident. It is
estimated that charities are contributing around £185 million
a year towards the care of older people.

Burstow said that charities are increasingly seeing the proceeds
of fundraising being diverted to fund services that should be met
from the fees paid by local authorities and the department of work
and pensions.

“By starving the care sector of funding it is leaving charities
to foot the bill. This is simply wrong. The money that is raised by
charities should not be going on care bills that should be picked
up by the state,” he said.

The report suggests that subsidising state funded places to such
a level cannot be sustained, and that voluntary sector providers
are adopting strategies to cope with the financial pressures such
as using reserves and closing homes.

The findings are based on a survey of 14 charities including
Help the Aged and The Salvation Army.

To view ‘Cap in Hand’ visit




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