Care Home Financial Support During COVID: Use of Infection Control Fund Grants in Care Homes under Scrutiny

Care homes have faced significant challenges throughout the pandemic and continue to do so. On 13 May the Government announced £600 million infection control fund (ICF) to support care homes. The fund aimed to reduce workforce movement and assist with the cost of infection control measures.

The ICF was shared amongst local authorities as a priority last year. The first instalment was paid to care homes in advance to help with escalating costs. However, providers were required to produce evidence in due course to prove that the funds were used for the required grant purpose. That supporting evidence is being audited by local authority counter fraud investigators to ensure that funds were used correctly. These audits have led to criminal investigations into fraudulently obtained grants. We are currently working with several care homes facing investigations relating to grants made under the fund.

The Infection Control Fund

In May 2020 the Government announced the COVID: Care Home Support package. Infection prevention and control was key to fighting COVID and the £600 million ICF was put in place to support that effort. Three quarters of the infection control fund distributed to local authorities was to be handed over to CQC registered care home providers and was allocated on the number of beds in the home. The remaining quarter could be used at the council’s discretion to provide wider workforce support and infection control.

Providing Evidence

Payments were made in two tranches, in October and December 2020. All funding was to be used for COVID infection control measures and must be spent by 31 March 2021. The Government required local authorities to recover any funding not used for this purpose.

Local authorities retain responsibility for ensuring that funds have been used for the correct purposes and not fraudulently claimed. They are also liable for any incorrect payments which will be clawed back by government.

Recipients of the grant were required to provide a monthly update on how the grant was being spent and plans for any remaining grant. Local authorities are actively auditing the supporting evidence that has been provided. In some cases we have seen criminal investigations into claims which they suspect have been made fraudulently. As part of those investigations senior staff have been questioned about claims during interviews under caution.

Care homes would be well advised to ensure they undertake their own review of claims and evidence provided in support to ensure that mistakes are identified early. We would recommend that homes take advice at an early stage if potential problems are identified. If you are already facing an audit or are under investigation, please do not hesitate to contact us to discuss how we can assist.

For further information please contact Nicola O’Connor.

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