Two Newbury council-run care homes being moved to private provider

Private providers are set to take over care provision at two West Berkshire Council-owned care homes in a cost-saving exercise.

The council wants to move Willows Edge and Birchwood Care Homes off its books.

It says these homes are currently operating ‘well above budget’ due to high agency staff levels and costs.

It adds that ‘a well experienced, external provider can operate at a market cost’, which will result in a saving for the council.

It has run a tender process, the details of which are still under wraps, but a final decision on which company gets the keys to each home will be made at next week’s executive committee meeting of the council.

It is a statutory responsibility of the council’s adult social care department to ensure that there is significant market capacity to provide services within a residential care setting.

The council was not able to include Notrees in the tender and therefore it will be subject to a separate procurement exercise at a later date.

Willows Edge and Birchwood have a combined maximum occupancy of 97 beds.

These are a mixture of residential, nursing and dementia residents.

The purpose of the tender exercise is to maintain the capacity within the homes in a more cost effective way by transferring the services to a third party provider.

Following the closure of Walnut Close in 2021 and Holly Grange in 2023, bed capacity in West Berkshire has declined by around seven per cent – with increased demand in the district.

As of October 2024, there were 47 ‘admittable’ care home vacancies in West Berkshire.

Lead times on new care homes is in the five- to seven-year range at present, according to council estimates.

Documents state that only one home is currently being built in West Berkshire and this is likely to be unaffordable for council placements as it is expected to be targeted at the self-funder market and beds to be priced at £1,600-£2,000 per week.

It says, even if planning is granted on the four schemes currently submitted, they are unlikely to be open before 2029 at the earliest.