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The politicalimpetus is coming from the Conservatives’ traditional belief that privateorganisations work far more efficiently than publicly run institutions.Therefore, someone working for a private care home provider is going to be moreproductive than if he or she was working in a State run home. This is clearly morebeneficial for the finances of local authorities, for the country as a wholeand hopefully for the residents of the homes concerned. There is also aperception that public sector workers are more prone to union activity, strikesand blind support for the Labour Party. The bottomline is that the Coalition’s senior partner is on a mission to privatise asmuch as possible as quickly as possible while the Liberal Democrats appear tobe sold on the idea that private sector employees are economically more productivethan their public sector counterparts. Judging by the raw statistics, it wouldappear that, since the election in May 2010, some 400,000 workers have so farbeen switched from the public to the private sector. To theoutsider, it might appear from this that one bunch of care workers are beingmade redundant while another one is recruited. This, of course, is nowhere nearwhat actually happens. Very often it is just the same staff with a differentemployer. The secondfactor behind this switch towards the private sector in the care home industryis the simple fact that there are more elderly people to be looked after asthey live longer and many more of these are suffering from dementia whichrequires more specialist care. In the case of one county, Suffolk, they have,for example, forecast that the numberof older people aged 75 and over is expected to increase by 85% by 2030 and thenumber of older people with dementia is expected to increase by 100% in thesame period. The problem is that this rise in numbers is coinciding withsubdued council revenues so there is a funding gap which needs addressingurgently. To deal with this head-on, the council is planning to close severallocal authority homes and have private companies replace them with much larger,state-of-the-art residences with modern amenities such as en suite bedrooms andoutside garden areas.  There is no shortage of private companies looking to expandin what is obviously a growth market and they can manage a large group of carehomes much more cost effectively than a local authority managing a dozen or sohomes. Moreover, they have access to funding to build these new propertieswhere the local council might struggle in present conditions.

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