Vulnerable children are being put at risk by private equity care home owners and their debt-fuelled business models, the industry watchdog said yesterday.
The Competition and Markets Authority (CMA) warned firms owned by investment tycoons were charging taxpayers excessive fees, despite their aggressive business tactics putting children’s welfare at risk.
There is a ‘real concern’ that high levels of debt could force hundreds of homes out of business, leaving the sector in crisis, it said.
The Competition and Markets Authority (CMA) warned firms owned by investment tycoons were charging taxpayers excessive fees, despite their aggressive business tactics putting children’s welfare at risk
Experts are worried the sector could face a Southern Cross-style collapse, when the UK’s largest adult care home company went bust following private equity ownership.
This put the wellbeing of thousands of elderly residents at risk.
CMA chief executive Andrea Coscelli said: ‘We are concerned this is a failing system. The levels of debt carried by private equity-owned firms is a real concern.’
The CMA also raised the alarm over fees charged by private companies, revealing the taxpayer was being forced to pay an average of £3,830 a week to look after each child –more than double the cost of sending a teenager to Eton College.
Firms were charging ‘more than they should’, enabling them to make fat profits – with margins of 23 per cent – on the back of caring for vulnerable children, it found.
The parents of a teenage girl who was tortured in a special needs home have accused its private equity owners of ‘cutting corners’ and failing to invest in staff
By Tom Witherow and Chris Brooke for the Daily Mail
The parents of a teenage girl who was tortured in a special needs home have accused its private equity owners of ‘cutting corners’ and failing to invest in staff.
Ruby Oades, 14, who has severe learning difficulties and autism, was dragged along the floor by her ankles, mocked for the way she talks and punished with loud noises
Ruby Oades, 14, who has severe learning difficulties and autism, was dragged along the floor by her ankles, mocked for the way she talks and punished with loud noises.
Several staff at Swinderby school and care home in Lincolnshire were dismissed or resigned, but no charges were brought.
Swinderby is owned by private equity firm Antin Infrastructure Partners, which bought the company from Five Arrows, part of the Rothschild banking dynasty, in 2017 for £200million.
After allegations of abuse emerged in 2018, Ruby was moved to Fullerton House, another school owned by Antin. But serious allegations of neglect and abuse also surfaced there, leading to the closure of the school in March this year.
Ruby’s father Terry Oades, 47, said: ‘I am fuming about it. This should not be happening, but this sort of thing has been going on for years. They should be investing in more appropriate staff. You can’t cut corners.’
His wife Nicola, 46, a nursery nurse, added: ‘It is like they are not bothered about the kids – it’s the money that matters. They did appear to be under-staffed. Ruby is very challenging but you don’t drag a child around by the ankles.’ A record of text messages, passed to the Daily Mail, revealed staff boasted about bullying Ruby.
One read: ‘Ruby attempting to make herself sick at 3am... t****ing [punishment] given, lol [laugh out loud].’ A colleague replied: ‘Good.’ Another said: ‘Member of staff tormenting Ruby now... taking the p*** out of how she talks...such a f****** bully.’
The two-year
