1st September 2021

Development Bank Supports Care Sector with £4M Of Investment

Older people in care homes in Wales will benefit from new facilities and improved services with the help of a £4m investment in the first half of 2021 by the Development Bank of Wales.

As part of the Welsh Government’s foundational economy, health and care services is a key sector which accounts for four in every ten jobs and £1 in every £3 that is spent with rising demand for quality care including specialist EMI facilities across Wales.

Seven Welsh businesses providing residential care have benefitted from loans totalling £4m from the Development Bank of Wales in the period from January to June 2021, helping to fund growth and service improvements. This compares to less than £1m in the same period last year.

Julie Morgan, deputy minister for social services, said: “We are committed to supporting the care sector and doing everything we can to ensure people in Wales have access to the best quality of care possible.

“We have supported care home providers, who have faced significant challenges over the last 18 months, with increased funding as we appreciate the pressures their services have been under. This Development Bank of Wales funding will improve the range of services and specialist care available for those who need it.”

Padda Care currently has two care homes situated in Llandybie, Ammanford and in Morriston, Swansea. Both homes provide specialist dementia care that is tailored to the individual needs of residents by using a person-centred approach.

A £1.5m loan from the Development Bank of Wales is helping to fund the development of a new 36-bed unit adjoining Glanmarlais. Padda Care has also acquired a site in Llwynhendy, Llanelli for the development of an 80-bed care home. Work is expected to start later this year.

Dale Roads Group is a long-established and highly regarded provider of care services with six residential care homes in Pembrokeshire. The privately owned business has recently acquired Pembroke Haven Residential Care Home in Pembroke Dock with a £1.8m loan from the Development Bank of Wales.

Nick Stork, fund manager for the Development Bank of Wales, said: “Our support for the care sector includes loan and equity to fund business growth and acquisitions. This year we are definitely seeing an uplift in demand for finance in this sector with an increasing number of care providers needing our support to step-up their investment in staff, creating jobs and working to address the skills gap by spending more on the recruitment, development and retention of staff.”