INDEPENDENT care home proprietors in York and North Yorkshire have accused local authorities of not paying them the proper rate for the job.

The claim, made at the annual conference of the York and North Yorkshire Independent Care Group at York Racecourse, comes as some private homes claim that low profit margins mean they could be blown out of existence by an emergency.

The allegation that more than 430 care sector businesses in York and North Yorkshire, which between them employ more than 18,000 care staff and nurses, were being shortchanged came from key speaker William Laing, regarded as Britain's leading voice on private health and community care.

Mr Laing, author of the Joseph Rowntree Foundation's research, A Fair Price For Care, used his own figures to demonstrate that neither City of York Council nor North Yorkshire County Council were paying the fee that they should for the care they commissioned.

In spite of the fact that many of the private care homes in the region were first class or even above par, the rates offered failed to measure up to the benchmarks set for the lowest standard homes in his research paper.

For instance, his recommended fee for straight nursing care in basic standard homes was £483 per week, whereas York's was between £443 and £453 and North Yorkshire's was between £429 and £436. His recommended weekly fee for personal care for frail elderly people was £352, yet York's was £329.67 and North Yorkshire's was £308. His suggested weekly fee for looking after those with dementia was £381, compared with York's £339.82 and North Yorkshire's £336.

He warned Britain faced a significant rise in the need for care homes even though some were contemplating closure. The number of people aged 65 and over was expected to rise by 81 per cent, from 9.3 million in 2000 to 16.8 million in 2051.

Afterwards, Keren Wilson, development director for the Independent Care Group, said: "The problem in the care sector is that it runs on very low margins and closure happens quickly.

"If, for instance three residents die and you cannot fill those vacancies immediately, there are no contingency funds to tide you over.

"Last year, there were five closures in North Yorkshire - in the Scarborough, Whitby and Ryedale areas. There were none in York, but I have had calls from some members there, saying that they are in dire straits.

"I would be surprised if there were no closures soon."

Spokesmen for both the City of York Council and North Yorkshire County Council were unable to respond to Mr Laing's claims in time for the Evening Press deadlines.

Updated: 11:24 Thursday, September 29, 2005