Hundreds of care homes 'sold up or collapsed' in past decade, Lib-Dems reveal

Hundreds of Scottish care homes have “sold up or collapsed” in the past decade, the Liberal Democrats have revealed.

In response to a Freedom of Information request, the Scottish Care Inspectorate said 476 care homes for older people have either ceased operating entirely or changed hands since 2015.

This number includes 56 care homes in Glasgow, 46 in Fife, 43 in Edinburgh, 36 in South Lanarkshire and 24 in the Highlands.

Among the care homes that provided data, 43 care homes cited financial “inviability” as a reason for cancelling services, while 27 cited problems around recruiting staff.

Another 42 care homes listed a change of legal ownership as a reason for cancellation, and 40 blamed the sale of the business.

Reacting to the figures, Scottish Lib-Dem MP Angus MacDonald accused the SNP Government of presiding over a crisis in care.

“These figures expose the mammoth strains on our care sector, and the chronic lack of government action to tackle them,” he said.

“Care providers feel like they’re on their own. The SNP wasted four years and £30m on a bureaucratic takeover of social care that they ultimately had to ditch. Meanwhile, the UK Labour Government only made things worse by clobbering providers with a cruel tax hike.”

MacDonald emphasised that with an “increasingly ageing population”, fixing the shortage of care homes in Scotland has never been more important.

He added: “And it’s only by delivering better care at home and in the community that we can free up space in hospitals and ease pressures right across the NHS.”

The Inverness, Skye and West Ross-shire MP called on the UK Government to exempt care providers from their national insurance hike and introduce a new minimum wage for care workers that is £2 higher than the national minimum wage.

“That’s how we can attract more people into the profession and get everyone the care they need at home or in the community,” he said.

A Scottish Government spokesperson said: “We do not want to see the closure of good quality care homes and we understand the concern this causes for residents and their families.

“We meet regularly with social care leaders to discuss the sector’s ongoing challenges, including severe workforce shortages and bed capacities – and want to ensure they are supported to deliver timely, high-quality care.

“The sector hasn’t been helped by the UK Government’s increases to Employers’ National Insurance Contributions, estimated to cost £84 million, and increasingly restrictive migration policies.”

According to the Scottish Government, the number of health and care worker visas issued to migrant workers fell by 88%, following restrictions introduced by the UK Government to the visa route in 2025.

“We will continue to do all we can to push the UK Government to reverse these damaging changes,” the Government spokesperson said.

“Ultimately, however, we can only create the migration system we need for the future of social care in Scotland with the full powers of independence.”

The UK Government has been contacted for comment.