Nearly 10,000 older people could face medicine and home support disruption, watchdog warns

One the country’s largest home care providers that supports thousands of older people to get dressed, prepare meals and take their medicines has been unable provide “adequate assurance” that it will be able to confirm funding beyond the end of the month, a watchdog has warned.

The Care Quality Commission (CQC) has written to 84 councils across England who use services from care group Allied Healthcare, which it said had announced its intention to apply for a Company Voluntary Arrangement in April to restructure its debts.

The company supports around 9,300 elderly and disabled people with managing their medication, washing, dressing, cooking and other activities.

Allied Healthcare has issued reassurances that its operations are “sustainable and safe” and accused the CQC of heaping additional pressure on councils needlessly.

But the regulator said it had written to the local authorities who commission some sort of care services through firm to notify them of its concerns.

Andrea Sutcliffe, the CQC’s chief inspector of hospitals, said: “Allied Healthcare has been able to confirm funding until 30 November 2018. However, we have not received adequate assurance that the company has, or will have, the ongoing funding or new investment necessary to ensure the business can operate beyond this date.”

She added: “We have encouraged Allied Healthcare to provide us with a realistic financially backed plan to support the future sustainability of the business, and given them every opportunity to do so, but they have failed to provide adequate assurance regarding future funding.”

Local authorities are bound to ensure continuity of care for everyone using an adult social care services in the event it “ceases to operate”, she said.

The CQC said it had been monitoring the situation “closely” to ensure that care continues for people who receive home care from the company.

Charities said the news would be “deeply concerning” to thousands of older people and their families who depend on support as a lifeline for their independence.

Age UK warned that the risks associated with losing a home care provider could be more than with residential homes, because dependents are spread out and “the risk of overlooking a vulnerable older person is greater”.

George McNamara, director of policy at the Independent Age charity, added: “This is a deeply worrying time for the thousands of older people and their families up and down the country who rely on Allied Healthcare as a vital lifeline of care and support.

A spokesperson for Allied Healthcare said: “We are surprised and deeply disappointed by CQC Market Oversight’s decision, which we regard as premature and unwarranted. We have demonstrated throughout our discussions with the regulator that Allied Healthcare’s operations are sustainable and safe, that we have secured a potential replacement of our credit facility, that there is no risk to continuity of care, and that we have a long term business plan in place that will continue to deliver quality care across the UK.

“The CQC has disregarded these assurances in spite of the robust evidence we have provided.”

Barbara Keeley MP, Labour’s shadow social care minister, said the situation was a result of £7bn in cuts to councils’ adult social care budgets under government austerity measures since 2010.

“Allied Healthcare’s financial difficulties show the desperate state of the social care sector which is in danger of collapse because of this government’s cuts,” she added.

The government care minister Caroline Dinenage said: “The Care Quality Commission and my department are closely monitoring the situation.”

Additional reporting by PA