Andy Burnham is under pressure to prohibit private companies from profiting off social care, as suggested by a recent report from the Co-operative Party. The report advocates for the co-operative model, which focuses on reinvesting profits instead of extracting them, as a solution to the challenges within the UK’s social care system.
Social care co-operatives, typically owned by their employees, operate by reinvesting any surplus profits back into the business. This stands in contrast to the majority of the largest care home providers in the UK, which are owned or supported by private equity firms.
Expected to succeed Keir Starmer as Prime Minister, Andy Burnham, now serving as a Co-operative Party MP, has long shown interest in reforming social care. The report highlights the success of Be Caring, the largest employee-owned social care co-operative in the UK, calling for more providers to adopt this model.
The push to eliminate private profit aligns with a similar approach seen in Wales, where legislation was passed to ban private profit in children’s social care. Currently, local councils are spending around £23.3 billion annually on adult social care services.
Joe Fortune, General Secretary of the Co-operative Party, emphasized the detrimental impact of private profiteering on the social care system, emphasizing the benefits of the co-op model where businesses are owned by those directly involved and profits are reinvested in care delivery.
Andy Burnham’s commitment to social care reform dates back to his time as a health minister and later Health Secretary under Tony Blair and Gordon Brown, respectively. His proposal for a National Care Service in 2009 aimed to provide free care access like the NHS for elderly and disabled individuals.
In ongoing efforts, Baroness Louise Casey, leading a major review of adult social care in England, stated that significant changes will be proposed in her interim report later this year. She also mentioned engaging with Andy Burnham regarding potential reforms, including the idea of a care levy.
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