NINE residents were given less than 24 hours notice to move after an old folk's home closed down.

Scout Rest Home in Burnley Road East, Waterfoot, was placed in voluntary liquidation by owners Sheila Birt and her brothers Michael and Tom on Monday.

Residents all had to be relocated the same day because there was no money to pay staff.

The owners claimed two factors were uppermost in the decision to close -- Lancashire County Council preferring to look after people in their own homes and the £50,000 of improvements the home needed to meet the new Care Standards Act.

Sheila, 49, said: "We got to the stage we were unable to run and we were advised by our accountants that we could not continue trading knowing that we were insolvent."

She said Monday was heartbreaking trying to relocate the residents aged late 70s to late 80s into other homes in the Valley.

Sheila began ringing round other private homes to establish vacancies before the social services representative arrived to arrange the transfer of residents.

Now the nine residents are in homes in Newchurch, Haslingden, Rawtenstall Bacup and Weir. Three elderly men have been able to be relocated together at a Haslingden home.

Sheila said: "Since we opened, 15 years ago next month, we have had full occupancy until last April when LCC changed its policy and began preferring to keep residents in their own home.

"We had 11 residents but two who were in their 90s had to go into hospital because they were poorly and they are not going to be able to return to the home. If they had been returning we could have gone on a little bit longer.

"I relocated my residents in other homes in Rossendale but how long they are going to be in there I don't know.

"They went into similar small homes and how long are they going to be able to continue before they close. It is what is going to happen."

Sheila said they had been trying to sell the premises as a private house since December and it will now be sold to pay off creditors.

A social services spokesman said: "We we given less than 24 hours notice to relocate the home's residents.

"The owners contacted us on Monday morning that the home was going to close that day and we did manage to find accommodation for all the residents.

"Spare capacity in the independent sector is something we have mentioned at meetings and it has been received with incredulity in the districts but clearly it is there."

A letter received by Sheila and other care home owners from County Coun Chris Cheetham, cabinet member for social services, confirmed LCC diverted five per cent of people away from residential care last year and supported them in their own homes and the target from April is a ten per cent reduction.

LCC social services department is currently reviewing its care home provision across the county and a proposal to close 35 out of its 48 homes is out for public consultation.