Nadra Ahmed OBE, Executive Chairman of the National Care Association (NCA) has said that the lack of 'sustainable funding’ in the care sector will mean providers are unable to accept Local Authority funded clients if they are to survive.

The NCA Executive Chairman feels providers will have to turn to the private market to create a feasible business model and as a result put immense pressure on both the local authorities and the NHS. 

Nadra spoke to Tomorrow’s Care after BBC Radio 4’s You & Yours programme revealed over 5000 UK care homes are at risk of closure because of mounting debt and an inability to cover loan repayments.

The You & Yours programme research, conducted by Opus Business Services and aired earlier this week, revealed that on average each care home in the UK is left with just £17,500 of profit every year, before any tax is paid. 

Nadra said rising nursing costs, higher standards imposed by the CQC, introduction of the National Living Wage and increased austerity cuts could see ‘responsible’ care providers to leave the market.

A recent NCA study has shown that 72% of respondents are considering their options over the next few years as to whether staying in the market is feasible.

Nadra continued: “We know that 72 residential care operation businesses became insolvent in 2015, the fifth consecutive year of increased corporate insolvencies in the care home sector, and a 24-fold rise in insolvencies since 2010. 

“This highlights the fact that there has been systematic under-investment in social care for at least half a decade, with increased pressure.”

Speaking about rising standards imposed by the CQC Nadra commented: “It is not wrong to expect the best but we then must be prepared to fund that. We cannot aspire to a world class service but expect to pay street market prices. 

“Responsible providers will always strive to deliver the best and so I think they are the ones that may decide to exit the market, especially if the funding model puts the quality of the business at risk."

Nadra added: “We will continue to speak out nationally - we can’t be defeated because if we give up who is going to provide care and support for all the vulnerable people who are not able to speak out for themselves.”