Summary: We ended our investigation into how the care provider treated deposits and money on account when residents transferred from private to council funding. The Care Provider has since ceased trading and therefore we would not be able to achieve a worthwhile outcome for any residents affected.

The complaint

1. Based on matters which came to our attention during an investigation, we started an investigation into how the Care Provider failed to refund deposits or money held on account for residents after they transferred from private to council funding of their care.

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The Ombudsman’s role and powers

2. We may investigate matters coming to our attention during an investigation, if we consider that a member of the public who has not complained may have suffered an injustice as a result. (Local Government Act 1974, section 26D and 34E, as amended)
3. It is our decision whether to start, and when to end an investigation into something the law allows us to investigate. (Local Government Act 1974, sections 24A(6) and 34B(8), as amended)
4. We provide a free service, but must use public money carefully. We do not start or continue an investigation if we decide there is no worthwhile outcome achievable by our investigation.

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How I considered this complaint

5. I considered evidence provided by the Care Provider as well as relevant law, policy and guidance.
6. Under our information sharing agreement, we will share this decision with the Care Quality Commission (CQC).

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Ending our investigation

7. The Care Provider ceased trading and later went into voluntary liquidation in March 2025. Before this the Care Provider transferred its care homes to several separate, different companies.
8. Any persons already affected by the Care Provider’s practices had contracts with the Care Provider, not the successor companies. Therefore, even if we found fault causing injustice to people who had contracts with the Care Provider, we would not be able to achieve worthwhile outcomes for those residents, due to the liquidation of the Care Provider.

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Decision

9. We have ended our investigation.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman