Council Pays To End Care Home PFI Deal

Southwark Council is buying out a long-term contract with Anchor Homes, in a move that will save the council around £12m over the next 12 years, while continuing to provide the same quality of service to all care-home residents, who will continue to benefit from the new facilities brought in as part of the original deal.  In December 2000, the council arranged for Anchor to invest £12m into the rebuilding and refurbishing of four care homes in Southwark as part of a PFI deal lasting 25 years. However, in a show of partnership and co-operation, Anchor has agreed that Southwark Council can complete the repayments early, saving the authority nearly a million pounds a year in fees – around £930,000 per year - and allowing it to take on ownership of the buildings and responsibility for the repairs and maintenance.  Read more on the Southwark Council website.