RESIDENTS at an Okehampton nursing home will have to find alternative accommodation because of problems with the level of state funding of nursing care of the elderly.

Aalen House Nursing Home in Parklands, Okehampton, is in discussions with Social Services and is hopeful a 'positive outcome' can be achieved, but concedes some long-term residents will have to leave the home.

The home says it has reluctantly had to terminate a number of contracts for existing residents because of a funding shortfall. The problem affects approximately 16 residents presently at the home — all of whom are resident under state-funded arrangements.

A statement issued by the nursing home says: 'The situation has now been reached where we cannot sustain good quality care within the fee levels paid by Devon Social Services and the Primary Care Trust.

'We are in particular facing a staffing shortage which will only be resolved by a well-deserved uplift in wages for care staff.'

The statement says the home had to increase its costs from October 1, by at least 10 to 15% as against the increase in fees from Devon Social Services of 6% in April this year.

The statement says: 'Discussions with Social Services were commenced in August 2003 as the fees requested exceeded the amount Social Services can pay and as part of this process, notice has been given to terminate a number of contracts for existing residents.

'Devon Social Services are currently undertaking a review of the care needs to ensure residents are funded at the correct level within Social Services policy.

'Relatives and advocates are being kept informed of the situation as it develops. A positive outcome is hopeful.'