Andy Burnham is facing calls to prohibit private companies from profiting off social care. A recent report from the Co-operative Party advocates for the adoption of the co-operative model, which focuses on reinvesting profits rather than extracting them, as a solution to the challenges within the UK’s 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 potential successor to Keir Starmer, Burnham has a vested interest in reforming social care. The report highlights Be Caring, the largest employee-owned social care co-operative in the UK, as a prime example advocating for more providers to follow suit.
The push to eliminate private profit aligns with a model implemented in Wales, where legislation was passed to prohibit private profit in children’s social care. Presently, councils are spending £23.3 billion annually on 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 and endorsed the co-op model as a more sustainable alternative, with ownership by frontline workers and reinvestment of profits into care provision.
Burnham’s commitment to social care reform dates back to his tenure as a health minister under Tony Blair and later as Health Secretary under Gordon Brown. His proposal for a National Care Service in 2009 aimed to ensure access to free care for the elderly and disabled, akin to the NHS model.
In the context of the Makerfield by-election, Burnham has suggested advancing the publication of the Casey review into social care to 2026, which is currently scheduled for completion in 2028. Baroness Louise Casey, leading a significant review of adult social care in England, indicated forthcoming substantial changes in the interim report and confirmed discussions with Burnham regarding potential reforms, including a care levy proposal.