Andy Burnham is facing renewed calls to outlaw private profit in social care, as Labour's sister Co-operative Party argues that Britain's struggling care system should be rebuilt around employee-owned providers instead of private equity-backed firms. The intervention comes as pressure mounts for sweeping reform of a sector plagued by rising costs, staffing shortages and growing demand from an ageing population. Co-ops Put Forward as the Alternative A new report from the Co-operative Party says employee-owned care providers should become central to the future of social care. Under the model, businesses are owned by staff, with any surplus reinvested into services rather than distributed to shareholders. The report argues this approach would improve care standards while ensuring money remains within frontline services instead of being extracted as profit. Private Equity in the Spotlight The proposal comes against a backdrop of growing concern over the role of private investors in the care sector. Around 80% of the UK's largest care home providers are owned or backed by private equity firms, according to the report. Its authors argue that commercial pressures have become increasingly difficult to reconcile with the long-term needs of vulnerable people, families and care workers. Burnham's Reform Agenda Under Scrutiny Burnham, widely expected by supporters to pursue major public service reforms, has long advocated overhauling social care. As Health Secretary in 2009, he proposed a National Care Service modelled on the NHS, with care free at the point of use for elderly and disabled people. More recently, he has backed accelerating Baroness Louise Casey's independent review into adult social care and has raised the prospect of a dedicated care levy to fund long-term reform. Pressure Builds for Radical Change The Co-operative Party says the current system requires more than additional funding, calling instead for structural reform that removes incentives for private profit. Baroness Casey has already signalled that her interim review will recommend significant changes later this year. With councils spending more than £23 billion annually on adult social care, expectations are growing that the next phase of reform could reshape one of Britain's most stretched public services. Whether Burnham embraces the co-operative model as a cornerstone of that agenda may become an early test of how far he is prepared to go in reshaping the care system. Andy Burnham urged to ban private companies making profit from social care
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