Labour says council and care firm failed to invest

Yahoo

17-02-2025

An opposition councillor said a Norfolk council and its main care home contractor have failed to invest in upgrading facilities.
Steve Morphew, the Labour group leader on Norfolk County Council (NCC), claimed Norse Care homes are under capacity and losing money.
He said a lack of investment in wet room bathrooms meant residents and families were choosing alternative accommodation, which he blamed for Norse Care's decision to announce the closure of four homes since August.
Norfolk County Council and Norse Care, which is a division of Norse - a company wholly-owned by NCC, said they have invested in the care home sector but admitted funding is an ongoing challenge.
Mr Morphew told BBC Radio Norfolk: "My concern is that the relationship between Norse as a wholly-owned company [of NCC] which claims commercial confidentiality as a private company, is talking to NCC behind closed doors.
"So there's no transparency on what we pretty much know and can work out from published documents, is that all of the homes that are run by Norse that are owned by the county council are threatened with closure in the next couple of years as the contract with Norse and the county council runs out.
He added: "Norse might say they have become unviable. The reason they have become unviable is because neither Norse nor the county council have invested in bringing them up to scratch.
"What's happened is they've become unattractive [to residents] as a result of not having modern facilities like wet rooms, so nobody wants to go in there, so they are carrying vacancies which means they are losing money."
Mr Morphew said the council could have borrowed money to invest at low interest rates, and he cited improvements at Norfolk County Hall and the construction of a new car park being carried out on borrowed funds.
He added: "Now, the county council could have borrowed money and lent it to Norse, or Norse could have borrowed or raised the amount that they're getting to do something about it, but they haven't.
"Now these homes are being closed by stealth and it's proving difficult to bring it into the public light so there can be proper scrutiny."
An NCC spokesperson said: "Norfolk County Council has continued to invest into the Care Market in Norfolk, with £76.4 million in fee uplifts over the past three years.
"However, we recognise that the sector is struggling to keep pace with escalating costs and rising demand.
"We've been working alongside Care England, the National Care Association and the Home Care Association to assess and understand the situation and raise our concerns in the right places.
"The National Insurance changes and lack of funding received by Norfolk County Council from central government to support providers with these costs, is an issue for the whole Care Market.
"We have undertaken market analysis to understand the risk to providers and this has identified that small and medium providers are most at risk of ongoing financial viability issues.
"We will continue to lobby Government for fair funding for Norfolk in response to this."
Norse did not directly address Mr Morphew's comments about a lack of investment in facilities, or the expiration of its contract with NCC in 2026.
In a statement, it said: "Norse Care are fully committed to providing high-quality residential care that meets the evolving needs of our communities.
"As care demands change, we are working tirelessly to ensure services remain sustainable, modern, and fit for the future.
"Any decision to close a care home is taken only after careful consideration, with the wellbeing of residents and families at the heart of the process.
"The transformation of care provision is essential to meet rising expectations and provide the best possible environments for those who need them.
"We will continue to work closely with all stakeholders to ensure Norfolk's care services evolve in a way that prioritises dignity, quality, and long-term sustainability."
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