PRIVATE care homes in the region are facing possible closure because they cannot pay staff the going rate, according to their owners.

Simon Beckett, chairman of Care North-East, an organisation that represents the region's independent care homes sector, said underfunding by local councils could lead to homes closing.

Local authorities use independent care homes to care for the elderly and pay them a rate per occupied bed.

But according to Mr Beckett, the private sector is finding it virtually impossible to recruit and retain trained staff as it cannot match local authority wages.

Mr Beckett said: "Local authorities do not pay independent care homes the true cost of care, yet they provide their own homes with considerably more funding."

Despite an additional £100m being allocated to councils by the Health Secretary to increase fee levels, North-East care homes are still struggling to cope.

"The funding situation is completely unbalanced and we are facing a real recruitment crisis, which could ultimately result in the closure of homes. Our clients and staff deserve better," he said.

For example, Redcar and Cleveland Borough Council pays local authority homes £489 per week per bed, while independent providers are paid a maximum of £332 per bed per week.

Mr Beckett called on local authorities to pay "the true cost of care" so private homes can increase wages and benefits and attract new employees.

Maurice Bates, Redcar and Cleveland council's director of health and social care, said: "We are talking to the private sector all the time about the sort of support both councils and primary care trusts can give them. For example, we have started to implement block contracting for some private sector businesses in order to guarantee their income. And our health and social services scrutiny committee has agreed to look at private sector fees."