This is 87-year-old Grace Elliott. As a care home resident, she is one of the lucky ones, because she can afford the £450-a-week fees. But others may not be so fortunate, as care homes predict they may no longer take on residents paid for and referred by Swindon Social Services.

THE CHAIRMAN of the Swindon Care Homes Association today revealed he is no longer taking residents referred from Social Services.

Richard Harris, who owns Quarry Mount Residential Home in Bath Road, says that the town's Social Services department is not providing enough cash to pay for the standard of care, forcing him to take in more private residents.

And as chairman of the Swindon Care Homes Association, which has 10 member homes from the town with close links to the National Care Homes Association and the Department of Health, he warns that more establishments in Swindon may follow suit.

This will further fuel speculation that the care home industry is being stretched to breaking point as managers of Swindon care homes warn that mountains of paperwork and red tape is forcing up costs and threatening their future a result they claim of the Care Standards Act 2000, which came into force in April 2002.

Mr Harris, who cares for 32 people at his home, said: "There are a number of homes in the town which are refusing to take on Social Services-financed residents. I think more will follow suit.

"Social Services need to start paying more for their places. At the moment private residents are paying more than they really need to in order to cross subsidise this shortfall. We can't allow this to happen."

Social Services refer elderly people needing full-time care to the town's care homes, of which there are 196 registered care homes and 44 nursing homes, where at least one qualified nurse to be on site 24 hours a day is required.

While the number of people aged above 60 living in Swindon has risen by 3,000 over the last decade, the number of care home spaces has fallen by more than 200 in less than two years.

The concern is that if social services cannot find enough beds for elderly people requiring care, there is a knock-on effect at the town's hospital, where pressure on bed spaces delays the discharge of some patients awaiting care home accommodation.

The latest available figures from Swindon and Marlborough NHS Trust reveal that in June 322 "bed days" were lost because of patients awaiting action by social Services.

A bed day refers to an overnight stay by a patient at the hospital, which costs the hospital trust about £100 each.

Mr Harris, who charges a privately-funded resident £450-a-week on average, says that Social Services pay the home between £300 and £370.

He warned: "The situation is at risk of creating a two-tier service in which Social Services-funded patients are left with nowhere to go."

He did concede, however, that he would take people funded by Social Services if families were willing to pay a 'top-up' fee.

Jo Osorio, director of Age Concern Swindon said: "This situation makes things very difficult for Swindon's elderly.

"It seems that neighbouring local authorities are able to pay more than Swindon Borough Council for the places. Realistically this will always mean that these people will get the bigger rooms and the better facilities."

Lynn Plumstead of Fairhaven Residential Home, in Bath Road, admits that she would rather have privately funded residents, but stressed she would not turn away referrals.

She said: "Social Services do pay below the unit cost for their services and this does cause problems."

Mrs Plumstead said the Care Standards Act 2000 was her biggest problem.

She said: "Emphasis is quickly being taken away from care towards administration. The paperwork now is absolutely horrendous.

"In the past 18 months we have had to make a number of alterations to comply with the National Care Standards Commission requirements." She says that so far the home, which is run by the charity Swindon Old People Housing Association, has had to install hot-water tap valves, radiator covers, a new bath and window restrictors, with no extra funding to pay for it.

Fairhaven resident, Grace Elliott, 87, has lived at the home for 15 months, and funds her own place there.

She said: "It's marvellous here everybody is so kind.

"They do a lot to make everyone feel welcome in the little time they do have.

"I would give them more money for what they do for us."

While Fairhaven, which houses 18 people, looks set to weather the current crisis, others have not been so lucky.

The Evening Advertiser reported how 20 pensioners including 97-year-old Elizabeth Brackenbury were told to leave Hurst House residential home in Pinetree Rise at the end of May as new owners could not be found to take over the running of it.

Although the pensioner was allocated a place in Westlecott Manor residential home, she has found it hard to readjust.

Her daughter Eileen Huck says her mother's health has deteriorated rapidly since the move.

She said: "Sometimes she does not even recognise me, which is obviously very upsetting.

"But I really can't blame the staff for that they do a brilliant job.

"Once you resign yourself to the fact that you are going into a home, you should not be forced to move again. You get used to the other residents, the place and the staff and to be told that you are going to be uprooted is going to be extremely upsetting.

"There is so much red tape around now that a lot of people just can't be bothered with it."

One owner of a residential home which caters for the elderly with learning difficulties, who does not wish to be named, says he is in the process of winding down, after being in the industry for 15 years.

He too blames unrealistic Government targets and lack of funding for the problem.

At the end of 2001 the family-run home had 15 residents.

Today it has just eight and he is trying to whittle that number down further.

The owner said: "I have seen the changes that have been put in place and it is clear that it is not working."

The owner and his wife said that they have a five-year plan, during which time he hopes to sell up.

Just two weeks ago the Evening Advertiser told how Chris Kenrick was closing his third and final home, because of retirement.

All 15 residents of the Springfield House Elderly Mentally Infirmed home in Station Road were forced to find somewhere else to live as nobody could be found to take over the running of it.

In September 2000 he shut the County House residential home in County Road, which housed around 12 residents.

Two years later he was forced to shut the County House nursing home, which had around 16 residents.

In spite of repeated requests for a comment, Social Services failed to respond.

COMMENTS FROM THE CARE HOMES

Grove Hill Residential Home, Highworth. Care now costs £350-a-week and was £330 last April. Owner James Dunn: "We are just about keeping our heads above the water. The Government has not thought their plans through. The increase in red tape is causing us big problems."

Orchards Residential Care Home, Perrys Lane, Wroughton. Care costs £400-a-week now and last July was £375. Manager Lisa Lewis said: "Sometimes people whose hearts are in the right place suffer as a result of the large amounts of paperwork. But there needs to be some red tape to prevent anybody setting up a home."

Sunnymede residential home, Croft Road. Care costs increased from £300 last July to £370-a-week now. Co-proprietor Neil Grant said: "The problem comes down to too much legislation. The amount of red tape is unbelievable. We are spending 10 hours a week just doing paperwork."

Ashgrove House nursing home, Station Road, Purton. Care costs about £600 a week and last year it was £570. Owner Keith Trowbridge said: "There is too much paperwork involved in the industry. This Government is forcing down standards."

Rose Cottage Nursing Home, High Street, Haydon Wick. Care costs are now £475 and were £450 last April. Manager, Kate Pearson, said: "The paperwork and the requirement to document everything is definitely making our jobs harder."

Ladymead Nursing Home, Moormead Road, Wroughton. Spokesman Graham Robb of Four Seasons Care Homes, which owns the nursing home, said: "We feel that homes for the elderly are grossly under funded. There is a loss of approximately £100 a week for every Social Services referral."