Ceredigion County Council is set to step in and save an Aberystwyth dementia care home from closure.­

Methodist Homes (MHA), which operates Hafan y Waun care home in Waunfawr, announced on 2 May that it was one of 10 homes across the UK that was closing following a review.

Ceredigion County Council said at the time that it would explore options “with the aim of securing the future of the home,” and a report set to go before Cabinet members on Tuesday, 4 July outlines how the council is set to stump up £1m to ensure the home remains open.

The home, opened in 2007, provides residential dementia care for up to 90 residents, in purpose-built, en suite accommodation, and Ceredigion County Council currently has a 125 year lease with MHA on a peppercorn rent to provide care services.

It currently has 50 residents, with MHA refusing to accept placements despite an uptick in staffing levels at the home.

The council report says that if the lease is terminated – as MHA have asked for saying the home was “struggling financially” – then the building would “revert to the council’s possession.”

“The option of bringing the provision over to council ownership through a managed leasehold transfer has therefore started to be explored,” the report said.

“This approach would ensure that the care home continues to operate, Ceredigion jobs are protected as far as possible and a valuable resource continues to be provided to the county and our communities.

“It would give certainty to the existing residents and their families and would prevent the considerable upheaval and logistical challenge of moving and placing over 50 individuals in new care homes under the possible alternative scenario of a potential home closure.”

The report adds that “losing the county’s main dementia residential facility would mean that service users and families would have to consider placements out of county and at a distance from their homes.”

Checks on the building are currently being made, while plans are put in place to ensure the home can be profitable, as “it is critical that the Council does not in turn just end up incurring similar financial losses.

Plans include maximising space at the home, and higher levels of bed occupancy, while a process for existing staff would also begin.

The council report outlines that £1m will be set aside from the Creating Caring and Healthy reserve “to allow for a transitional period across 2023/24 and part of 2024/25.”

“If future innovative options are not developed, then it will not be financial sustainable,” the report added.

“Even with wider considerations and options being pursued, there is no guarantee that financial shortfalls can be met entirely, therefore there is a risk that additional budget provision could need to be found at some point during 2024/25.”

The council said it would work closely with MHA on the handover, calling the move was a “major undertaking”, with a hope that the transfer can be completed by September.