The collapse of Southern Cross caused huge concern for residents and their families and the Government is right to say action should be taken to try and prevent a similar crisis from happening again. Labour will consider the Government's proposals in detail to see if they are robust, workable and fit for the future.
In particular, we are concerned about whether the proposed requirements on care home providers to provide financial information are sufficiently strong, whether the Care Quality Commission or Monitor have the skills, experience or resources to properly scrutinise the financial structures of companies, or the power to take effective action to prevent financial failure if risks emerge.
However, the underlying challenge facing the Government is to tackle the crisis in social care funding. There have been financial pressures for many years, but the Government's cuts are now driving care services to breaking point.
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