Care England Responds: North Yorkshire Council’s Dementia Hubs Plan Risks Undermining the Independent Sector

Care England, the leading representative body for independent adult social care providers, in collaboration with the Independent Care Group, has urged North Yorkshire Council to reconsider its plans to establish in-house dementia hubs at a projected cost of £60 million.

While Care England recognises the urgent need for expanded dementia care provision, it believes that working in partnership with the independent sector would be a more cost-effective and sustainable approach. By utilising the expertise, infrastructure, and capacity of the independent sector, the council can avoid unnecessary financial risks and ensure that funding is directed towards enhancing existing services rather than duplicating efforts.

Mike Padgham, Chair of the Independent Care Group, commented:

“At a time when North Yorkshire Council, like other local authorities, is under significant financial pressure, it is essential to consider whether this investment is necessary, particularly when independent care providers could deliver these hubs more efficiently. Investing in the existing independent sector would be a more effective use of resources, generating greater economic returns and reducing long-term costs across the health and social care system.

“Historically, local authorities moved away from in-house provision because commissioning from the independent sector delivered better value for the public purse. Independent providers bring existing infrastructure, economies of scale, and specialist expertise, making them best placed to deliver these services efficiently. By supporting the independent sector, councils can ensure continuity of care, maintain quality standards, and foster innovation without the burden of managing and maintaining new facilities themselves.”

Professor Martin Green OBE, Chief Executive of Care England, added:

“The independent sector is resilient, but it is facing unprecedented challenges due to the recent changes to Employers’ National Insurance Contributions and the increase in the National Living Wage. These rising costs are putting immense pressure on providers, and they need support to navigate these difficult times. Rather than creating new services, the council should be focusing on supporting and investing in the independent sector it already has, helping to build capacity and improve care. Choosing to start a new service now risks sending the wrong message, suggesting a lack of confidence in the market when it is more important than ever to strengthen and sustain it.”

Care England and the ICG are calling for North Yorkshire Council to reconsider its plans and explore alternative solutions that harness the expertise and efficiency of the independent sector. Engaging in meaningful dialogue with independent providers and commissioning services strategically would create a more stable, adaptable, and responsive care system, ultimately benefiting both service users and taxpayers alike.

ENDS