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More than £5bn was spent on independent social care and mental health provision in the UK last year, a report has revealed.

The independent sector accounted for more than 40 per cent of all services, with the majority provided by private companies, according to analysts Laing and Buisson.

The report identified price as a key driver for outsourcing services because the independent sector “can employ unqualified staff at significantly lower pay rates and less favourable terms and conditions than the public sector”.

● Mental health and specialist care services: UK market report, price £590