CARE home bosses have warned they may have to close if local authority fees are not increased.

Independent carers across the region say the industry is suffering as never before.

In Darlington, the Independent Sector Provider Group (ISPG) has taken legal advice to try to force Darlington Borough Council to increase its payments to private homes.

It has warned if the payments are not increased, a number of homes in the town will have to close.

The council funds the care of pensioners who do not have enough savings to pay for themselves.

After negotiations with ISPG, the council proposed £295 per person a week up until October and £298 after that.

But the ISPG rejected this, claiming it was not enough money to even provide basic care for pensioners.

Accountants KPMG were commissioned by Care North-East to work out the basic cost of care in Darlington and County Durham.

The figure they came up with was £329 last year and £352 for this year.

ISPG decided to ask the council for the lower amount.

Spokesman Jeremy Walford said: "We thought that was a fair figure.

"In real terms, fee levels are less than those being paid ten years ago, but since then there have been substantial increases in the service levels, standards of accommodation and statutory requirements for care homes to meet."

A spokesman for Darlington council dismissed the KPMG figure because it did not relate to Darlington alone.

The council claimed the money it pays is enough for basic care and families only had to pay for extras.

A spokesman also said if homes closed it would not be down to fees.

He said: "If nursing homes are closing it is because of market forces.

"Two new homes with more than 300 beds are being built which will offer top-of-the-range facilities and choice. The care homes are in business and must face competition."

The ISPG has written to Alan Milburn asking him to intervene in the situation and is consulting lawyers about its next step to get the council to increase its offer.

* The Government announced yesterday that it intends to change legislation to ensure all registered care homes get only one council tax bill which the owner would be responsible for paying.

This would mean residents in self-contained units which are part of a care home would not face a separate bill.