31,000 OAPs face care home crisis

PM's rescue pledge
as US firm is blamed

PM David Cameron yesterday vowed to protect 31,000 elderly residents in care homes run by crisis-hit Southern Cross.

The company, which runs nearly 750 UK homes, is on the brink of bankruptcy.
Mr Cameron's official spokesman offered a "guarantee" that the residents will not lose out if the firm collapses. He said they will be able to stay in their present homes or move to another facility.
The spokesman said: "We will do what we need to do to ensure that there is effective protection for anyone affected. We are putting the interests of the residents first."
Southern Cross was bought by US private equity firm Blackstone in 2004. Blackstone's boss is flashy Stephen Schwarzman, 64, ranked the 52nd richest person in America.

His company floated Southern Cross on the Stock Exchange in 2006 and saw its market value double in a year. Blackstone ditched its stake just before the financial crisis hit in 2007.
Southern Cross has struggled with falling fees from local authorities and soaring rent and borrowing costs.
Tory MP Sarah Wollaston, a GP, said: "It can't be right that people can make a fast buck and clear out leaving taxpayers to pick up the bill."
GMB union chief Paul Kenny, who has 12,000 members working in the care homes, blamed the crisis on "a combination of privatisation and private equity".