Two care homes in Leicestershire are set to close by the end of December, forcing more than 80 older residents — many living with dementia and complex needs — to find new places to live as the sector strains under rising costs and staff shortages.
Runwood Homes, which operates more than 50 sites nationally, has notified families and staff that Ashfield Care Home in Loughborough and The Grange in Melton Mowbray will shut, citing financial unsustainability. Around 45 residents live at Ashfield and roughly 40 at The Grange, according to local officials.
Families fear the toll of moving
Relatives and residents say the prospect of relocation is frightening, particularly heading into winter. Research from the Alzheimer’s Society has linked moves for people with dementia to worse outcomes, a risk advocates warn must be weighed in every case.
“This is my home,” said one 92-year-old Ashfield resident. “Moving me now would break my heart and probably my health.”
Occupancy at one of the homes has already dipped amid uncertainty, according to people familiar with the situation, as families consider alternatives in a market where vacancies are scarce.
Costs up, staffing down
Runwood Homes points to a surge in operating costs — from energy and food to insurance and National Insurance contributions — alongside acute staffing pressures. Sector estimates put England’s adult social care funding gap at about £1.5 billion this year. Skills for Care reports more than 150,000 vacancies across adult social care in England, a vacancy rate above 10%, leaving many providers reliant on agency cover at higher cost.
Both Leicestershire homes were downgraded by the Care Quality Commission to “Requires Improvement” over the summer following staffing shortfalls, according to inspection records. Providers and council leaders say those downgrades can trigger a spiral: higher costs to stabilise services, fewer referrals, and mounting losses that some operators cannot absorb.
Critics argue that a largely for-profit market amplifies the strain, with significant sums flowing out of frontline care in rent, debt servicing and dividends. Providers counter that fees paid by local authorities often sit below the true cost of care, leaving thin or negative margins even before inflation and workforce gaps are factored in.
Scramble to rehouse residents
Leicestershire County Council said it is “working tirelessly with Runwood and other providers to ensure no resident is left without options,” while acknowledging a wider capacity crunch. The county has lost hundreds of beds in recent years, officials say, and hospital leaders warn that more care home closures risk worsening delayed discharges.
In the near term, some residents may face temporary placements — including short hospital stays or moves further from family — as social workers try to match needs to available beds. Advocates are urging authorities to consider emergency grants or a pause on closures through the winter to reduce disruption.
A national tipping point
The Leicestershire shutdowns echo a nationwide pattern. Industry analyses indicate more than 150 care homes have closed across England so far this year, up about a quarter on 2024, removing thousands of beds from an already stretched system. The King’s Fund and other think tanks have repeatedly warned that a decade of constrained local government funding has left providers exposed to shocks.
“These closures are the tip of the iceberg,” said Mike Padgham, who chairs the Independent Care Group. He warned that without urgent support, more operators will follow. The health secretary has called adult social care “broken” and said a planned National Care Service will require significant investment and cross-party backing, but detailed reforms are not expected to take effect for several years.
Meanwhile, families are organizing. A petition launched by relatives connected to the two homes has drawn more than 2,500 signatures, and local MPs have pressed ministers for a funding review. Residents and staff are asking for clarity on timelines, with closures slated for the end of December.
For now, council teams are assessing each resident and arranging moves case by case. Providers, unions and charities say the speed and sensitivity of those decisions — and whether short-term funding can be found to steady struggling homes — will shape outcomes well beyond Leicestershire.
