Upcoming Events :
Housing Seminar: Partnerships with the Public Sector – Avoiding the pitfalls
Thu 31 May 2012
Minerva House, 5 Montague Close, London, SE1 9BB
Residential care homes face regulatory changes
Wed 12 Oct 2011
Residential care home operators in the UK could soon be subject to a new regulatory system.
According to the Financial Times, the government is launching a consultation on proposals that will require companies in the sector to comply with stricter rules regarding their finances.
This would mean they would be obliged to disclose key financial information when they are told to and must ensure they have adequate capital to avoid becoming vulnerable to collapse.
Paul Burstow, the care services minister, said the government is keen to hear what views people have on how regulatory procedures could be improved.
However, he confirmed that the coalition has not yet decided what it believes would be the "best approach" to take.
The move is being taken in the wake of the collapse of residential care home operator Southern Cross.
Last month, it was confirmed that one-third of the organisation's properties have now been transferred to other operators, following the necessary regulatory approval.
Charlotte Cook, a partner at Winckworth Sherwood Solicitors, commented: "We would support any regulation which leads to a stronger care home sector and prevents any repeat of the Southern Cross collapse.
"Residents and their care must be the primary focus. We would encourage all those in the sector to respond to any future consultation to share their experiences and views."
