The absence of a sustainable funding structure for social care has added £26m to the financial black hole over the course of the last 12 months.
The stark assessment comes from Bupa’s recent Bridging the Gap report, which puts the total funding shortfall at £892m.
The population is ageing and thus increasing social care demands, but at the same time the economic situation has led the Government to make cutbacks, decreasing funding as demand rises.
Bupa Care Homes UK Director Oliver Thomas warned that many councils could not afford to pay operators to care for the frail and elderly of society.
Thomas went on to say that fixing social care should be the top priority for newly appointed Health Secretary Jeremy Hunt.
Yesterday ABI Director General Otto Thoresen called upon the new Financial Conduct Authority (FCA) to support the insurance industry as it seeks to address challenges such as an ageing population.