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<p>Local authorities retain responsibility for managing provider failure in the social
care market. The Government has worked with the Association of Directors of Adult
Social Services and partners to publish guidance to support local authorities to develop
contingency plans for managing the failure of a social care provider in their local
area. The guidance can be found at:</p><br /><p><a href="http://www.lgiu.org.uk/report/care-and-continuity-guide/"
target="_blank">http://www.lgiu.org.uk/report/care-and-continuity-guide/</a></p><br
/><p>Research by the Local Government Association (LGA) suggests that as of September
2015, at least 95% of councils have contingency plans in place should a major local
provider go out of business. This research is available at:</p><br /><p><a href="http://www.local.gov.uk/documents/10180/6869714/2015-08-11+Stocktake+4+Full+Tables+%28Final%29.pdf/f9826461-aaf1-4c86-b5aa-994d2046e80c"
target="_blank">http://www.local.gov.uk/documents/10180/6869714/2015-08-11+Stocktake+4+Full+Tables+%28Final%29.pdf/f9826461-aaf1-4c86-b5aa-994d2046e80c</a></p><br
/><p>The Government will continue to work with local authorities to ensure they have
effective and up to date plans in place.</p><br /><p>The Care Act also gave the Care
Quality Commission (CQC) a new function to oversee the finances of care providers
which are either large or whose provision is geographically concentrated as their
financial failure would make it difficult for local authorities to discharge their
statutory responsibilities.</p><br /><p>The oversight function will provide early
warning to relevant local authorities in the event that one of these providers is
likely to fail and their services cease. This will allow local authorities time to
implement contingency plans.</p><br /><p>The Government is working with the CQC and
the sector to monitor risks to the system and will develop bespoke contingency plans
to support local government to manage provider failure, where appropriate.</p><br
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