The five largest residential care providers warn chancellor George Osborne that inadequate funding for the policy risks a major provider collapse

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A major residential care provider could collapse if the government’s ‘national living wage’ policy is implemented without an increase in social care funding, sector leaders have warned.

The UK’s five largest providers said a collapse could happen in the next 12 to 24 months.

This would lead to many older people being forced to seek support from the NHS, placing significant pressure on an already-stretched health service, the providers said.

The warning came in a letter to chancellor George Osborne and marks the second call from the sector to ensure the policy, announced in the summer budget, is properly funded. In July, the UK Homecare Association warned of a similar collapse in the home care market. Read More.