County council leaders have called for an urgent meeting with health secretary Jeremy Hunt after warning that care homes could shut because of a funding shortfall totalling nearly £1bn.
The County Councils Network (CCN) said care markets in their areas are ‘close to crisis’ and appealed to Mr Hunt to urgently provide funds.
It says closures would have a ‘devastating impact’ on vulnerable people who rely on residential and nursing care homes.
Research by the CCN shows the gap between what councils can afford to pay for care and the average cost charged by independent companies, combined with other funding pressures, will total £959m this year.
The problem is worst in county regions, the CCN says, because they have a higher proportion of people needing care than in urban areas.
Further analysis by the Local Government Association warned that planned increases in the living wage will cost 1bn by 2020.
Earlier this week five leading care providers warned chancellor George Osborne that the national living wage would force homes to close.
Cllr Paul Carter, Chairman of the County Councils Network, said: ‘The demands placed on the adult social care services across English counties are approaching crisis point, not least because counties have a much greater proportion of elderly clients requiring care packages.
He added: ‘With money being put into the NHS increasing over the last five years, whilst social care budgets continue to fall, county councils have had to squeeze what they pay care providers to such an extent that providers are struggling to stay afloat and will have no alternative but to close care homes.’
