Care home owners on the Isle of Wight have carried out their threat to bill the local authority at the full commercial rate for care places after failing to agree to the terms of a new contract.
The owners threatened court action last month after disputing the terms and conditions of the new contract, which they said was being forced upon them (News, page 8, 20 September).
The action comes as Isle of Wight Council faces an overspend of £500,000 by the end of the year, despite introducing a raft of costcutting measures.
Care home owners began billing the council last week for amounts far in excess of the £231 per person agreed in the previous contract for clients placed by the authority.
Meetings between social services chiefs and the industry have failed to find a compromise and the owners say they will press ahead with court action if they do not receive full payment.
Chairperson of the Isle of Wight Registered Care Homes Association Richard Jones said: "We wanted a contract which would keep pace with our costs, so that when the minimum wage increases, or inflation rises, it automatically triggers a rise in what the council pays us."
The council claims it cannot afford to offer homes more cash.
Councillor Roger Mazillius, who chairs the social services select committee, said that even if the council's bid for more money from the government was successful, there was no guarantee more cash would be available for care homes.
