SOCIAL services chiefs in North Yorkshire are facing court action over a £70,000 "debt" in a row about the alleged underpayment of fees for people living in care homes.

Yorkshire Care Developments Ltd is taking the action in protest at what it claims are inadequate fees paid to homes for the care of elderly and vulnerable people.

The action has been backed by the Independent Care Group (ICG), which is the association for local care providers in York and North Yorkshire.

Yorkshire Care Developments is suing the county council over an alleged £70,000 debt in respect of underpayment of fees.

The county council has expressed its disappointment over the decision.

It said it was spending £56 million on care home places this year, with most of the money going to independent residential and nursing homes for older people in North Yorkshire.

Keren Wilson, ICG development director, said: "This is not something that we do lightly.

"The ICG favours negotiation over fees wherever possible, but the board feels strongly that the county council has not taken the issue of a fair price for care seriously enough over a long period of time."

Coun Murray Naylor, the county council's executive member for social services with responsibility for older people, said: "North Yorkshire Social Services and the ICG have worked together to arrive at the package. Although the ICG strongly believes that available funds are insufficient to meet the aspirations of the care industry, it is felt that the agreed inflationary increase and the other important changes we are making are a positive step forward."

Earlier this year, City of York Council agreed a new deal with care home owners in which fees were increased by four per cent and £300,000 provided to bridge the gap in fees between existing placements and new residents. The ICG described this as a step in the right direction, but said more cash was needed.

Updated: 10:35 Friday, July 09, 2004