Andy Burnham is under pressure to prohibit private companies from profiting off social care, according to a recent report from the Co-operative Party, Labour’s affiliated party. The report advocates for the adoption of the co-operative model, which focuses on reinvesting profits rather than extracting them, as a solution to the challenges facing the social care system in the UK.
Social care co-operatives, typically owned by their employees, prioritize reinvesting any surplus profits back into the business. This stands in contrast to the prevalent ownership structure in the sector, where 80% of the largest care home providers in the UK are either owned or financially supported by private equity firms.
As a Co-operative Party MP, Andy Burnham, poised to potentially replace Keir Starmer as Prime Minister, has long been vocal about the need for social care reform. The report underscores the success of Be Caring, the largest employee-owned social care co-operative in the UK, as a model for other providers to emulate.
The push to eliminate private profit mirrors a legislative approach taken in Wales, where laws have been enacted to ban profiteering in children’s social care. Currently, local councils in the UK are collectively allocating £23.3 billion annually to adult social care services.
Joe Fortune, the General Secretary of the Co-operative Party, emphasized the detrimental impact of private profiteering on the social care system, highlighting the co-operative model as a more sustainable alternative. He stressed the importance of radical reform in social care, with the co-operative model playing a central role in driving positive change.
Andy Burnham’s commitment to social care reform stems back to his tenure as a health minister under Tony Blair and later as Health Secretary under Gordon Brown. During his time as Health Secretary, he proposed the establishment of a National Care Service in 2009, aiming to ensure accessible care for the elderly and disabled, akin to the principles of the NHS.
Prior to the Makerfield by-election, Burnham advocated for expediting the release of the Casey review on social care to 2026, ahead of its scheduled completion in 2028. This move aligns with the ongoing efforts to address key issues in the social care sector.
Baroness Louise Casey, leading a comprehensive review of adult social care in England, recently hinted at significant impending changes to the system in her forthcoming interim report. She confirmed engaging with Andy Burnham regarding potential reforms, including discussions on the introduction of a care levy.