A PRIVATE children’s home operator’s claim that its Blackburn base has been forced to close due to cost-cutting by local authorities has been disputed.

Mike Labord, business manager of Family Care Associates, said six staff had to be made redundant at the family-run company’s home in Queens Road after it failed to gain any council-led referrals for children to live there for the past several years.

It will close next month when its final resident moves out to live independently.

The claim by the OFSTED-ranked ‘outstanding’ home was made after they invited BBC Panorama staff to the home to counter suggestions of widespread inadequate care standards in homes across the country.

Yet both Lancashire and Blackburn with Darwen councils stated they believed that homes were being underused not due to cost-cutting but because of their efforts to prioritise placing children in care with another family.

The company, which was established in 1968, houses children placed into care in three other homes in the North West also including Preston, Southport and Oldham.

Mr Labord believed that the prospective closure of the three bedroom Blackburn home, which took referrals from Lancashire County and Blackburn with Darwen councils, could potentially be the first of many independent home closures if council budgets don't improve.

He said: “I think we no longer seem like a viable option financially, unfortunately, to councils because they have had to bear a lot of cuts over the last two years.

“The councils clearly seem to be funding places that are lower cost but if they are of the same quality I don’t know.

“Companies like us are finding it very difficult in the current climate.”

Both executive members for Children’s Services in Lancashire and Blackburn with Darwen, Couns Frank Connor and Louise Taylor, said they endeavoured to keep children in a family environment.

In exceptional circumstances where children needed to be placed in a home they would favour use of council-run or ‘preferred providers’ to give them the best support.

They both added that although value for money was a consideration when locating an independent provider it was treated as a last resort.

Ms Taylor said: "When making decisions about placements, the needs of the young person are always the highest priority.

"We have developed a list of 'preferred providers' for all care placements who demonstrate high-quality provision and outcomes for young people, as well as provide good value for money."