Council criticised for delay in paying fees to Sheffield care home

The charity owns and operates Cairn Home in Crosspool, which was opened back in 1935 to provide care for elderly blind people.

The home now has 29 residents but Sheffield Royal Society for the Blind (SRSB) says delays with payments from Sheffield Council are causing financial problems.

Steve Hambleton, general manager of SRSB, said: “There is a proposal to change the way the council pays care home fees and we are concerned about the negative cash flow implications of this.

“Currently we collect our fees from residents by weekly direct debit but the council pays every four weeks - two weeks in advance and two weeks in arrears.

“While this will have a negative impact on our cash flow, it will be minor compared to what happens when a new resident is admitted, with it frequently taking many months before any payment is received from the council.

“In the last year we had one resident where it was over six months before a payment was received.

“Under the current system at least we have the money from the resident coming in each week.”

Mr Hambleton says it will cost the council £715,000 annually to make this change. He added: “When the council is under severe financial pressure, if this money is available we would suggest that it could be more effectively spent on increasing care home fees, not making a negative impact on the cash flow of care homes.”

Council officers say they are currently speaking to care providers about invoicing and payments.

The council says: “The service will take into consideration the impact of this change and minimise disruption for residents and providers.

“We are sorry there are delays in paying for newly placed residents and acknowledge there can be delays in the first payment for a placement. Work is ongoing to resolve this.

“The change is necessary to better support residents and ensure we are compliant with legislation.”