TWO residential homes are to close in a £8.5m shake-up of council services for the elderly.

Middlesbrough Council plans to close Netherfields later this year and the Albert Cox home in May next year after discussions with residents and drawing up individual care plans which reflect their needs and preferences.

The new emphasis is on "extra care housing" schemes where people have their own flat and 24-hour support.

A project is to be developed on the site of the former Robert Higgins home, and at Levick House, while intermediate care is to be increased at the town's Parklands care centre.

Middlesbrough Council says these moves will result in an increase in intermediate and intensive care, helping people who have been ill or in the hospital.

A council statement said: "An increase in the number of places in private or independently run homes will meet the demand for residential and nursing care."

Councillor Brenda Thompson, the council's executive member for social care, said: "These plans will ensure that older people enjoy independence, but can also rely on good quality care and support.

"We are putting our money where it is needed most.

"The plans will involve £8.5m investment from the council, the primary care trust and housing associations. It's vital we make this investment now so we provide a flexible service and one that meets real need now and in the future."

Extra care housing provision is set to rise sixfold over the next few years, with an increase in intermediate care for people who have been ill or left hospital and intensive home care.

Coun Thompson said: "These changes will be handled sensitively for the people directly involved.

"We will offer them the maximum support and an assessment of their needs so that the changes offer them the very best option for their future.

"Our own care homes don't meet national standards, but putting money into them at this stage won't be to the long- term benefit of older people.

"It will duplicate the kind of care which is available through the independent sector and leave gaps where there is an undeniable need for investment.''

Closing Netherfields and Albert Cox will bring in savings of £1.3m over the next five years.