A COMMUNITY interest company which runs telecare alarms for older and disabled people in York could go into administration if council bosses don’t step in.

Be Independent runs alarm systems and specialist equipment hire for disabled and elderly people, but dwindling customer numbers mean the company is facing a £95,000 a year loss and could have to bring in administrators.

The firm was set up by the city council in 2014, so instead senior city councillors are being asked to bring the service back in-house to avoid leaving 2,500 without a vital service.

The council’s adult social care boss Martin Farran said as Be Independent does key early help and prevention work and helps people live at home for longer, securing its future is very important.

He added: “We have already informed customers and staff of the proposals. While we understand that this news may be unsettling, our focus is on Be Independent’s customers, its staff and securing the services long-term future. If the transfer is agreed, we will endeavour to make the transition as smooth as possible.”

Papers drawn up ahead of the meeting on Thursday show that when Be Independent was launched by the council five years ago, it had a business plan which expected customer numbers to grow.

Instead, trade from both paying and subsidised customers has fallen and the community interest company (CIC) has lost a contract with York NHS.

Now its business overwhelmingly comes from the city council, meaning staff should be able to transfer into the authority, the report adds.

The council had been due to renew its contract with Be Independent this summer, but that plan was stopped when company bosses told the council about its difficulties - with a loss of £167,000 forecast in 2017/18 and only £64,000 in the bank to cover that.

Now council finance staff believe the service faces a £95,000 a year loss if it comes back into council management, and could have to write off £21,000 owed by private customers.

On Thursday executive members will be told that other options - such as letting Be Independent go into administration - would either put staff at risk of redundancy and leave customers without the help they need, or would need cash injections from the council.

Instead, they will be asked to bring the service back in-house at the council by August, with a review of the business model to follow soon afterwards.