Allied Healthcare helps OAPs with basic tasks such as washing, dressing and managing medication.
But watchdog the Care Quality Commission has taken the unprecedented step of writing to 84 councils raising fears the firm could soon go bust.
It said there is a “credible risk of service disruption” after the end of this month – and warned local authorities must step in to help elderly and disabled users if needed.
Charities and campaigners claim it is a “stark illustration” of a broken social care system “close to collapse”.
Allied Healthcare last night said its operations are “sustainable and safe” and said the watchdog’s action was “premature and unwarranted”.
It announced plans to restructure its debt in April through a Company Voluntary Arrangement.
But the CQC said it has not received “adequate assurance” it can continue to operate from December onwards.
It provides services to 9,300 people in England and more than 13,000 across the UK.
Andrea Sutcliffe, the CQC’s chief inspector of hospitals, said: “It is now our legal duty to notify those local authorities where Allied Healthcare is contracted to deliver home care services, that we consider there to be a credible risk of service disruption.
“We are doing this now to give local authorities as much time as possible to plan for maintaining continuity of care for people relying upon services from this provider, should this be required.”
Sally Copley, from Alzheimer’s Society, said the developments were “deeply concerning” for vulnerable Brits.
She said: “The care market is failing. We can’t keep burying our heads in the sand.”
George McNamara, from older people’s charity Independent Age, said: “This is a deeply worrying time for the thousands of older people and their families up and down the country who rely on Allied Healthcare as a vital lifeline of care and support.
“Tragically, the social care system is in crisis through years of neglect and underfunding.”
The Government is expected to publish a Green paper on social care funding before the end of the year. Social care is currently means-tested and is paid for by a people contributing, local government or both.
A Department of Health spokesman said: “We recognise this may be a worrying time for those receiving services delivered by Allied Healthcare, their families and the company’s employees. We are working closely with the relevant authorities to ensure there is no disruption to anyone’s care.”
A spokesman for Allied Healthcare said: “We have demonstrated throughout our discussions with the regulator that our operations are sustainable and safe, that we have secured a potential replacement of our credit facility, that there is no risk to continuity of care, and that we have a long-term business plan in place.”
Isolation of OAPs
ONE in seven of Britain’s over-65s feel they have no one to turn to for help and support, leaving them lonely and isolated.
An Age UK poll of 1,000 people estimated the figure at 2.65million — a result supporter Dame Judi Dench, 83, calls “heartbreaking”.
The charity released the findings as part of a campaign to win support for services such as its free Age UK Advice Line, 0800 055 6112.
Bond star Judi said: “Help them to be there for older people who might have no one else.”
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