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UK care homes say funding shake-up threatens their viability

Operators fear plunge in revenue from private customers could trigger collapse in services

The viability of care homes is under threat from the government’s plan to allow more privately funded customers to buy care at cheaper rates currently only available to councils, operators have warned.

The government announced on Tuesday that it would use legislation to let private buyers – who often pay hundreds of pounds a week more in care fees than councils – to pay the same price as if their care was publicly funded.

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