Allied Healthcare signals financial difficulties with rescue plan for creditors

Older people and other vulnerable patients are cared for by Allied Healthcare - PA

Allied Healthcare, one of the UK's biggest providers of home care for old and vulnerable patients, has said it will approach creditors for a rescue plan. 

More than 13,000 people rely on the firm's services and it holds contracts with some 150 local authorities. 

An £11m bill for back-pay for sleep-in care workers along with an additional £65,000 operating cost from the National Living Wage have added to company's financial difficulties. 

Late payments from local authorities and clinical commissioning groups have also hit its balance sheet. 

Under the Company Voluntary Agreement to be put to put to creditors on Monday, there will be no redundancies or branch closures.

The company "will continue to trade safely and it remains business as usual", a spokesman said.