Northamptonshire County Council ‘bankrupt’ but still paying £2m a year for empty care beds

The County Council are still paying £2m for empty care beds

Northamptonshire County Council has revealed it is spending up to £2m a year on empty care beds, despite being effectively declared bankrupt.

In a stabilisation plan, published earlier this month, it was revealed elderly care centres run by Shaw healthcare under a 25-year contract has been operating at below 30% occupancy for years.

Mick Young, former Labour leader of Northamptonshire County Council when the deal was negotiated in 2003, said to the BBC mistakes were made.

The contract entails the provision of 204 rehabilitation care beds at care centres operated by Shaw healthcare.

The lack of residents was caused by patients not qualifying for beds that are being paid for – by the council – at a cost of £1.5-£2m each year.

A spokesman for the Department of Health and Social Care said: “We have been approached by Northamptonshire County Council with regard to the council’s PFI contract with Shaw healthcare that covers areas of social care and are exploring with all parties how the contract is working before any further action is taken.”

A Shaw healthcare spokeswoman said: “It would be inappropriate for us to comment at this stage, but we can confirm that we do have a PFI contract with the council and that we remain committed to working with the council to help it provide the best value for money for the council and the people of Northamptonshire.”

Earlier this year, the government announced commissioners would initially take charge of Northamptonshire County Council until the end of March 2021.

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