Older people in care homes in Wales will benefit from new facilities and improved services with the help of a £4 million investment in the first half of 2021 by the Development Bank of Wales.
As part of the Welsh Government’s foundational economy, health and care services is a key sector that people rely on to keep them safe, sound and civilised. It is estimated that the foundational economy accounts for four in every ten jobs and £1 in every £3 that is spent with rising demand for quality care including specialist EMI facilities across Wales.
Seven Welsh businesses providing residential care have benefitted from loans totalling £4 million from the Development Bank of Wales in the period from January to June 2021, helping to fund growth and service improvements. This compares to less than £1 million in the same period last year and includes funding for care home providers that deliver care services for the elderly and adults with mental health and learning difficulties.
Deputy Minister for Social Services, Julie Morgan said: “We are committed to supporting the care sector and doing everything we can to ensure people in Wales have access to the best quality of care possible.
“We have supported care home providers, who have faced significant challenges over the last 18 months, with increased funding as we appreciate the pressures their services have been under. This Development Bank of Wales funding will improve the range of services and specialist care available for those who need it.”
Padda Care currently has two care homes situated in Llandybie, Ammanford and in Morriston, Swansea. Both homes provide specialist dementia care that is tailored to the individual needs of residents by using a person-centred approach.
A £1.5 million loan from the Development Bank of Wales is helping to fund the development of a new 36-bed unit adjoining Glanmarlais. Expected to open in late 2021, the unit will provide specialist EMI care and create 30 new jobs. Padda Care has also acquired a site in Llwynhendy, Llanelli for the development of an 80-bed care home. Work is expected to start later this year.
Managing Director of Padda Care Piers Tumeth said: “It has been a testing time for the care sector but we remain committed to developing our services and investing in our people to ensure the continued delivery of our personalised and specialist dementia care.
“All that we do is based on our ethos of supporting and buying local. We create local jobs, provide local people with first-class care whilst also working with local businesses to benefit the local economy. We’ve partnered with local construction company Sterling of Cross Hands to build our new facility in Llandybie and worked closely with Llanelli-based Peter Lynn and Partners and our business adviser Jamie Reynolds of Cennen Solutions to develop our business strategy.
“It was Jamie that introduced us to the Development Bank of Wales and from the out-set we knew that we had found a long-term funding partner that shares our values and commitment to delivering social and economic value for local people, including the creation of well-paid and rewarding jobs. The whole process has been so straight-forward with the team at the Development Bank really stepping back to see the bigger picture and focus on what matters for us as a growing business.”
Dale Roads Group is a long-established and highly regarded provider of care services with six residential care homes in Pembrokeshire. The privately owned business has recently acquired Pembroke Haven Residential Care Home in Pembroke Dock with a £1.8 million loan from the Development Bank of Wales.
Mike Davies is Managing Director of Dale Roads Group. He said: “Our relationship with the Development Bank dates back to 2017. They’ve been hugely supportive of our growth; providing flexible and affordable funding that has enabled us to continuously invest in the care that we provide for our residents. The acquisition of Pembroke Haven as a purpose-built residential care home is a perfect fit with our business. We’ve been able to safeguard 43 local jobs and maintain the provision of community-based high-quality care right in the heart of Pembrokeshire.
“Continuous investment in our sector is critical if care providers are to be in a position to offer a high-quality of life for residents with excellent standards of care delivered by a professional and motivated workforce.”
Nick Stork, Fund Manager for the Development Bank of Wales said: “We’re supporting the Welsh Government’s focus on developing the foundational economy. As people live longer and technology is transforming the way we live, lifestyles and expectations have changed.
“Reports estimate that 113% more people will be over the age of 85 by 2035, fuelling demand for an increase in the quantity and quality of care including specialist EMI facilities. That’s why a modern health and care system needs to be designed and delivered around the needs and preferences of individuals, with a greater emphasis on keeping people healthy and well. We should all be able to age well and live in age-friendly communities where older people feel valued, included and respected.
“Our support for the care sector includes loan and equity to fund business growth and acquisitions. This year we are definitely seeing an uplift in demand for finance in this sector with an increasing number of care providers needing our support to step-up their investment in staff, creating jobs and working to address the skills gap by spending more on the recruitment, development and retention of staff.”