Sir Keir Starmer's Labour Party has been accused of watering down a radical proposal to ban private equity firms from the social care sector, sparking concerns that meaningful reforms may be delayed indefinitely. The policy, initially unveiled in 2022 by former Health and Social Care Secretary Wes Streeting, aimed to prevent companies that fail to meet national standards on care provision, workers' rights, and financial stability from operating within the industry.
The decision to omit the proposal from Labour's manifesto has been attributed to concerns within Sir Keir Starmer's team that it could be perceived as 'anti-business'. This move comes amid a broader debate about the pace of reform in the social care sector. A Fabian Society report examining the creation of a national care service highlights the complexities and challenges facing policymakers, with Mr Streeting arguing that an 'absence of good political leadership' is hindering progress.
Mr Streeting has been vocal in his criticism of the government's handling of social care reform, accusing Downing Street of delay tactics. He notes that a review into adult social care reform, known as the Casey commission, is not expected to conclude until 2028, making major changes to the sector unlikely before the next general election.
Labour MPs contributing to the Fabian Society report have echoed concerns about the pace of reform. Anna Dixon, MP for Shipley, has questioned why the care and support needs of millions of disabled and older people are frequently relegated on ministerial agendas. The Labour Party's 2024 manifesto did pledge to 'create a national care service underpinned by national standards', a commitment shaped by earlier Fabian Society research.
Responding to criticism, a Department of Health and Social Care spokesperson reaffirmed the government's commitment to a National Care Service, citing additional funding for local authorities, a fair pay agreement for care workers, and support for unpaid carers and disabled individuals. The Baroness Casey's initial recommendations on delivering a National Care Service are expected later this year.
Source: Fabian Society report