The Care Home Market in Wales: Mapping the Sector


  • adults
  • care homes
  • housing
  • market shaping
  • Wales

Date: October 2015

Type: Report

IPC has prepared a report for the Minister for Health and Social Care in Wales and the Public Policy Institute for Wales (PPIW) which considers the resilience of the Care Home Sector in Wales.

The report, prepared with the PPIW, looks at the residential care market in Wales at a crucial time for social care in Wales, with the implementation of the Social Services and Wellbeing (Wales) Act 2014.

It highlights considerable variations across Wales, with some councils managing care homes directly and others running very few, if any, homes themselves. Wales is less dependent than England on large scale providers but questions exist over future provision due to a range of factors, including:

  • owners of single homes reaching retirement age
  • financial pressures on care homes make it more difficult to enter the market
  • providers seeking to expand facing high capital costs and uncertain future demand
  • increasing costs of care as people require more intensive support
  • a shortage of skilled nursing staff

The report advises that Councils and the Welsh Government monitor services, ownership, financial stability, staffing and quality of care in order to plan future provision.  It recommends that the Welsh Government develops a national standard contract for use by councils and private providers and consults on whether national guidance on fees would be useful. Councils should include care homes and domiciliary care in their wider planning and economic development activities.