A number of private care home owners in Wales have rejected fee
increases proposed by local authorities, and have issued notices
withdrawing from contracts
The Welsh Local Government Association has asked the owners to
wait while discussions are held with the National Assembly, and
said issuing ultimatums was unacceptable due to the distress and
uncertainty caused to residents and relatives.
Welsh LGA leader Sir Harry Jones said the fee increases being
demanded by some private homes were well above both inflation, and
the fee assumptions made by the assembly in calculating the local
government settlement and social services specific grants for
2002/3, and could therefore only be met “by cutting other valuable
He added that local government remained committed to working
with the independent sector to identify measures to ease the
pressures, but that it was not prepared to do so while homes
continued to issue ultimatums.