Andy Burnham has been called upon to prohibit private companies from profiting off social care. A recent report from the Co-operative Party, Labour’s affiliated party, suggests that the co-operative model, which reinvests profits rather than extracting them, could help address the challenges in the UK’s struggling social care system.
Social care co-operatives, typically owned by their employees, operate by reinvesting any surplus profit back into the business. This stands in contrast to the current scenario where 80% of the largest care home providers in the UK are either owned or supported by private equity firms.
As a Co-operative Party MP and potentially the next Prime Minister, Burnham has shown a keen interest in reshaping social care. The report highlights Be Caring, the largest employee-owned social care co-operative in the UK, advocating for more providers to adopt this model.
The push to eliminate private profit aligns with the approach taken in Wales, where legislation was introduced to ban private profit in children’s social care. With councils currently allocating £23.3 billion annually to adult social care services, the emphasis on a co-operative model is seen as a crucial aspect of necessary reforms.
Joe Fortune, the General Secretary of the Co-operative Party, emphasized the detrimental impact of private profiteering on the social care system, advocating for a shift towards a model where care businesses are owned by those directly involved and profits are reinvested in enhancing the care services.
Burnham’s commitment to social care reform traces back to his tenure as a health minister under Tony Blair and later as Health Secretary under Gordon Brown. In 2009, during his time as Health Secretary, he proposed the establishment of a National Care Service to ensure equitable access to care, akin to the NHS.
In the midst of the Makerfield by-election, Burnham proposed expediting the publication of the Casey review on social care to 2026, which is currently slated for completion in 2028. Baroness Louise Casey, leading a significant review of adult social care in England, indicated that her upcoming interim report will recommend substantial changes to the system.
She also disclosed her communication with Burnham, who has recently discussed the potential implementation of a care levy.
