MORE than 1,000 care homes with nearly 50,000 residents and 60,000 staff could be at risk of closure as the Southern Cross crisis threatens to spread, a leading union warned today.

Unison’s warning that the problems facing Darlingtonbased Southern Cross, the UK’s largest care home operator, may not be a one-off came as the Government faced mounting pressure to step in and protect its 31,000 residents.

Yesterday, the Government said residents were its “paramount concern” and that every step necessary would be taken to protect them; but Labour leader Ed Miliband accused Southern Cross of treating elderly people as “commodities”.

Southern Cross has announced it will underpay rent for the next four months, as it struggles with a £230m annual rental bill.

Today, Unison warned other care home firms may also be exposed and warned that private equity takeovers of public services which use “high risk”

business models could leave taxpayers picking up the bill.

Its research showed that the privatisation of the care industry was an “experiment that has gone seriously wrong”, the union said.

General secretary Dave Prentis warned of a “looming catastrophe” as he claimed companies gambled with people’s care.

Jenny Chapman, MP for Darlington, said Unison’s report raised very serious concerns and she called on the Government to act.

“It’s difficult to imagine why this should only happen to Southern Cross,” she said.

A Department for Health spokesman said the social care sector had involved large numbers of independent providers of different types and sizes for many years; and financial issues for one, even a major one, did not undermine the principle of independent care provision.

In the Commons, Alex Cunningham, MP for Stockton North, asked what the Government was doing to protect Southern Cross residents, including the five homes in his constituency.

“This must be a very difficult time for those people, their friends and families and they are entitled to answers,”

he said.

Care Services Minister Paul Burstow said residents were the Government’s “paramount concern” and “every step necessary” would be taken to protect them.

“Whatever the outcome of the restructuring by Southern Cross, no one will find themselves homeless or without care. The Government will not let that happen,” he said.

Ministers had been monitoring the situation and the Government was working closely with the Local Government Association and the Association of Directors of Adult Social Services to ensure arrangements were in place if there was a need, Mr Burstow said, while hinting tougher rules could be brought in to ensure the financial viability of care firms.

Meanwhile, speaking in London, Mr Miliband offered to resume cross-party talks on the future of adult social care.

Prime Minister David Cameron said he welcomed the opportunity. The Government’s Dilnot Commission on adult social care is due to report next month.