RESIDENTIAL homes in Essex could be plunged into crisis due to budget cuts of about £180million.

The number of places paid for at residential and nursing homes by Essex County Council will be reduced dramatically.

At its current rate the council spends about £146million a year.

Under new plans agreed by the cabinet at County Hall, the council will spend £86 million a year instead – a £180 million reduction over three years.

It means fewer homes and fewer places will be available for elderly residents to choose from and theymay have to pay more of the costs themselves.

The county council provides funding for 5,000 adults in residential and nursing homes.

The council is hoping more people will remain in their own homes in the future, with more care provided to keep them there.

A report by the council states: “Despite a rising older people population demand for placements is gradually falling.

“The council needs to control costs by working closely with providers and ensure vulnerable adults can maintain their independence for as long as possible in the community and reduce the need for long term residential care.

“The financial savings associated with a reduction in placements is required to offset the additional costs of alternative care such as home support.”

The council plans to simplify its arrangements and put together a list of preferred suppliers.

It is working on new contracts and homes will have to bid to get on the list.

Residents will be able to request which home on the list they want to go to.

However, if a home is not on the list and costs more than those on the list, they will have to find the difference.

The new arrangements could be in place as early as next year.

An Essex County Council spokesman said, “The new procurement will not have any impact on existing service users, who will all remain in their current placements.

“This procurement process is one required of us by law and is part of our governance framework.”