Care homes payment row decision

Fees paid to care homes will increase well above the rate of inflation following a compromise between homeowners and town hall bosses.

Under the agreement, 16 homes involved in the dispute will reopen their doors to residents referred by Bury Council's social services department.

The deal was thrashed out by solicitors and representatives of the council and the Bury Care Providers Action Group.

Variable weekly rates, which range between £236 and £277, will be replaced with a single figure of £314 for new residents.

The cost of caring for those already in the homes will rise to £294 per week, with the increase also applying to private homes not involved in the dispute.

Solicitors reached the agreement following a year of difficulties that saw some individuals housed miles from their preferred residence.

The row began in April last year, when owners threatened to take the council to court over the payments.

They argued for an increase from the average weekly rate of £250 to around £350.

The dispute meant that, in all but a few special cases, homes involved refused to take new residents referred by social services.

Actions also included a poster demonstration and protests by elderly residents outside Bury Town Hall.

The new agreement also includes a formula for future increases.

Eleni Ioannides, director of social services health and housing, said: "It has been a difficult dispute on both sides and it has been hard to come to a settlement that felt equally fair for the homeowners and the council.

"We are happy to have settled in a way that is not only appropriate now but also contains some promises for the future."

Boyd Farrar, general manager of Heathlands Care Village in Prestwich and chairman of the action group, said: "We are delighted to have reached an amicable settlement despite the long-running dispute.

"We look forward to working in partnership with the council in the future and I have every confidence that we can do so."