Councillor Mariam Lolavar, Cabinet Member for Health, Adult Social Care and Borough of Sanctuary said:
“On behalf of the Royal Borough of Greenwich, I have written to Stephen Kinnock MP, Secretary of State for Care to raise concerns about the growing role of private equity in the adult social care market and the impact this is having on the sustainability and value of care services.
“We recognise the importance of a stable and diverse care market. Alongside supporting traditional care models, we have invested into the development of new models such as community micro-enterprises and health and care co-operatives. However, we are increasingly concerned about financial models that prioritise profit for investors over long term sustainability of care provision. Adult social care is largely funded through public money, and we do not believe that public funds being extracted for the benefit of private equity profits represents good value for taxpayers.
“Our letter highlights the financial pressures that local authorities already face in maintaining high quality care services for our residents. We believe that greater attention is needed on how investment models within the sector affect costs, stability, and the long term resilience of care provision.
“The council is calling for a clearer national approach to ensure that funding for adult social care is used in the way that prioritises quality care, financial transparency, and sustainable services for those who rely on them. We look forward to engaging with the government on how the sector can be supported in a way that protects both residents and the public purse.”