High energy bills force 1 in 3 UK care homes to nearly close in 2022

By Al Mayadeen English
Source: Agencies
23 Mar 2023 14:53
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Care England, the representative of charities that provide homes for vulnerable adults, complained to Ofgem last year about how several of their members are increasing gas prices.

Practice nurse Victoria Parkinson gives a COVID-19 jab to a care home resident in Wigan. (AFP)

One-third of adult social care providers considered closing during 2022 due to high unjustified rates by energy suppliers for small businesses, which caused heating bills to soar up to 500%, revealed the UK charity representative organization Care England, as reported by The Guardian on Thursday.

"1/3 considered exiting the market in 2022. Among the smaller providers (fewer than 250 employees), nearly half considered taking this action," the Sector Pulse Check report, co-authored by Care England, stated.

The newspaper reported that some suppliers, as admitted by the UK energy regulator Ofgem, could have charged small companies excessive rates in order to increase their profit.

Care England, the representative of charities that provide homes for vulnerable adults, complained to Ofgem last year about how several of their members are increasing gas prices, compared to wholesale market prices.

"There can be no justification for charging such horrendous and financially crippling rates," said Care England chief Martin Green.

Amid the growing crisis in #Ukraine, it seems like #Brits are bracing themselves for difficulties in paying their energy bills, as #European countries scramble to find an alternative for the #Russian gas. pic.twitter.com/bqr4LKqBIG
— Al Mayadeen English (@MayadeenEnglish) March 29, 2022

The situation was aggravated by the COVID-19 pandemic where facilities were required to ventilate indoor spaces, Green highlighted.

"The underlying financial fragility of the sector and energy-intensive nature of services has meant providers are pushed further into what was already an incredibly precarious situation," the Care England chief added.

Many countries are facing a massive energy crisis as inflation surged after the COVID-19 pandemic. The situation worsened when the war in Ukraine started a little over a year ago, which led to disruptions in supply chains, exacerbated by the sanctions imposed on Russia, eventually resulting in a spike in energy prices worldwide.