UNIONS have clashed with council bosses over plans to drastically overhaul the care of elderly and disabled people.

Blackburn with Darwen Council has revealed it wants to set up a company to manage its care homes and day care services.

Town hall leaders say that the complex scheme, which would be one of the first of its type in the country, would be more flexible.

But unions say that it amounts to privatising the service in an attempt to cut costs on the care of vulnerable people and have raised fears over hundreds of jobs that would be transfered.

Mike Booth, of Unison, said the plans were a “bolt from the blue”.

He said: “The proposals are an insult to the 350 employees who deliver the council-run service and are completely unnecessary.

"The current service is well run but the council has been making plans to abandon it without even talking to the staff involved or properly considering the impact this could have on some of the most vulnerable people in the community.”

But Lib Dem adult social care chief David Foster said the company would bring a more “entrepreneurial” spirit and went on to insist there were no plans for job losses.

The green light from councillors tomorrow would pave the way for the company, called Salvere – Latin for ‘in good health’ – to take over the parts of the adult social care department that have not yet been contracted out.

This includes running the council’s remaining three residential care homes, and its day care service.

The company would also be used to support people who want to pay friends and relatives to be their carers.

The government wants an increasing number of people to be given “personal budgets” to manage their own care, rather than using council services.

This involves employing so-called personal assistants, who can be their friends and relatives.

Coun Foster said Salvere would be used to provide admin support for these people.