CARE homes face a crisis due to chronic underfunding and dozens could close, it has been claimed, with talks between the industry, councils and government on the brink of collapse.

Scottish Care, the umbrella body for the care home industry, said an inability to meet rising fuel and food costs, and a shortage of nurses were leaving homes facing cost increases of 8.5 per cent while councils were offering them a rise of less than one per cent.

Chief Executive Donald MacAskill said there were just four days left to tackle before the collapse of a key national agreement on care costs. “Families need to know how parlous the care home sector is at the moment.

“We are calling on the Scottish Government to directly intervene and allocate some of the money received from the Chancellor in last week’s Budget to priorities older people’s care and support,” he said.

“Despite new monies being allocated in England following last week’s budget there is no indication that Scottish Government will seek to benefit social care in Scotland.”

Scottish Care believes its membership, which includes several hundred family-run care homes and many care charities, cannot accept a one per cent increase, without putting homes at risk of closure, while 13 per cent of the groups 700 members face defaulting on bank loans.

He said: “It is with very deep regret that we have decided to make public the virtual breakdown of our discussions with Scottish Government and others. We believe that it is no longer acceptable for us to remain silent about the lack of investment which the Government is prepared to make in the care home sector in Scotland.”

Dr MacAskill said nursing homes were currently allocated just £3.85 per hour for 24/7 nursing care of thousands of vulnerable residents, the majority of whom are receiving end of life care. “This is about the price we are prepared to pay for preserving the dignity of our older Scots and enabling them to exercise choice and control over their options for high quality care provision,” he said.

Councillor Peter Johnston, Cosla’s health and well-being spokesman insisted the offer from councils and Integrated Joint Boards (IJB) was reasonable He added: “Local government is offering sufficient resource to deliver the Living Wage and a reasonable uplift thereafter for other pressures,” he said.

“This is a fair deal which allows providers to invest in their staff and the quality of their service.”

A government spokesman also defended the offer, adding: “We have provided significant investment to support social care and deliver on our shared priorities, including the payment of the Living Wage to adult care workers.

“This has consisted of £250 million in 2016/17, which has been baselined, and a further £100m to support the continued delivery of the Living Wage commitment and sustainability within the sector.”