UK Government Moves to Cap Profits of Private Care Homes

British ministers are considering profit caps on private adult social‑care providers to curb high fees. Local Government Secretary Andy Burnham, Labour deputy leader Angela Rayner and care‑sector tsar Baroness Louise Casey have all criticised what they call profiteering in the sector. The government already has powers to limit profits for children’s homes and fostering agencies and is exploring extending them to adult care homes as part of a broader social‑care reform.

Burnham said the caps are needed to protect vulnerable people and to deliver better care without raising taxes. Casey warned that some councils feel “held to ransom” by large, often private‑equity‑owned providers that can threaten contracts. In parallel, Burnham has argued that no one should have to sell their home to fund care, calling for a tax‑system redesign – including changes to inheritance tax, capital‑gains tax on housing and an investment‑income surcharge – to spread the cost more fairly across generations.