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Care insolvencies and CQC's financial viability rule

Company insolvencies in residential care rose to 144 in the twelve months to September 2026, from 110 a year earlier. CQC requires every registered provider to take reasonable steps to stay viable.

The figures

The Insolvency Service's company insolvency statistics for September 2026 show 144 insolvencies in residential care (SIC 87) in England and Wales over the twelve months from October 2025 to September 2026, against 110 in the previous twelve months. In social work without accommodation (SIC 88), which includes home care and child day-care, the figures were 107 and 91.

Company insolvencies, twelve months to September

  • Residential care, to Sep 2026144
  • Social work without accommodation, to Sep 2026107
England and Wales, SIC 87 and SIC 88, summed from monthly figures; 2026 figures are provisional. Source: Insolvency Service, Company Insolvency Statistics September 2026, Industry Table A1b, published 20 October 2026.

Regulation 13

Regulation 13 of the CQC (Registration) Regulations 2009 says the service provider "must take all reasonable steps to carry on the regulated activity in such a manner as to ensure the financial viability of the carrying on of that activity" for achieving the aims in its statement of purpose and meeting the registration requirements.

Market oversight

CQC's market oversight scheme under the Care Act 2014 covers providers "that could be difficult to replace if they were to fail". In England it applies to home care providers delivering 30,000 or more care hours a week and to care home providers with 2,000 or more beds, among other criteria.

Early signs in the monthly figures

A rolling 13-week cash flow forecast, debtor days by payer and the staff cost ratio show pressure during the year, from the monthly figures, months before the year-end accounts are prepared.

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Common questions

What does regulation 13 require?

A registered provider must take all reasonable steps to ensure the financial viability of the regulated activity, to meet its statement of purpose and the registration requirements.

Which providers are in CQC market oversight?

In England, home care providers delivering 30,000 or more care hours a week and care home providers with 2,000 or more beds, among other criteria in SI 2015/314.

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