Call for social care safeguards

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The government must do more to protect people from failing social care services in England, a report has said.

The National Audit Office (NAO) warned that safeguards need to be put in place to ensure people continue to receive the care they need in such circumstances.

The spending watchdog said that care markets must deliver a genuine choice of services to all users and that support must be available to help customers exercise choice.

Following the troubles over Southern Cross, the NAO said the Department of Health "did not have any existing arrangements or strategy of dealing with the potential failure of a provider of this size".

It said that unlike other regulated areas of the economy there are "no predetermined continuity of supply arrangements for essential services" other than local authorities working with other local authorities to ensure continuity of care.

However, the department says it is already considering whether to oversee the £23bn market more closely.

In its report, Oversight of User Choice and Provider Competition in Care Markets, the NAO also says it found most people who use personal budgets to pay for their social care report improved wellbeing but a small minority said they were worse off.

Almost a third said they find buying care for themselves difficult.

And some local authorities report that personal budgets have led to achieving better value for money in social care, but the overall impact on cost has not been evaluated

The NAO said: "The department should determine where market oversight is not sufficient, and if more central oversight is necessary.

The recent financial problems faced by Southern Cross illustrate the need for government to develop a system to address serious provider failure. "

Amyas Morse, head of the NAO, said: "As the population ages and more pressure is put on social care, the Department of Health must ensure that its oversight of the care market is robust, that people have access to the information and support that they need and that it has arrangements in place in the event of large providers getting into financial difficulty."

Responding to the report, care services minister Paul Burstow said: "The National Audit Office report is a helpful contribution to this work on how local authorities can achieve value for money so that more users and carers - a large proportion of whom are not receiving state support - are able to exercise choice in local markets.

"The report's comments on provider failure are a helpful contribution to our wider work on market oversight for social care."

He added that the government is considering whether additional measures of market oversight are needed and will shortly publish a discussion paper on the issue.

As outlined in a written ministerial statement last week, the government is considering whether additional measures of market oversight are required. We will shortly be publishing a discussion paper seeking views on this issue."

Michelle Mitchell, charity director at Age UKsaid: "Providing good care to every older person who needs it should be a basic requirement of a civilised society. Older people also need stability especially if they are care home residents.

"The National Audit Office says local authorities should have plans in place to take action if services fail, but they also need to prevent services going out of business. This report confirms the absolute need for a strong regulating body to ensure that there are the right elements in place to prevent care homes from failing."