TWO of the 752 care homes run by the collapsed Southern Cross group are in Andover – leaving vulnerable elderly residents with an uncertain future.

All the firm’s homes will now revert to the landlords, including Mountwood in Millway Road and Ashbourne Court in Salisbury Road.

The owners have all said they are committed to providing continuity of care to the 31,000 residents, with around 250 homes switching to new operators immediately.

The country’s largest operator of homes ran out of money after costs rose when onerous rental terms began to bite and revenues fell when occupancy rates across the group fell as part of local authority cut backs.

Almost 80 per cent of Southern Cross’s revenue came from local authorities and now local campaigners say this is no time for Hampshire County Council to cut back further by threatening other vulnerable people at Cherry Orchard in Andover.

Sarah Evans, NW Hampshire’s Labour candidate at the last general election, said: “These cuts will cost lives and ruin the future life chances of the young and vulnerable, potentially leaving communities without adequate services when privateers like Southern Cross fold.

“I worry for the young and the old and call on Hampshire County Council to reverse its plans and start putting working people, students and the elderly ahead of its ill-thought out plans.”

Shareholders will see their investment wiped out and those with pensions and investments with Legal and General, Lloyds Banking Group and Standard Life may also lose out as they are thought to be invested in Southern Cross.

Michelle Mitchell, charity director at Age UK, said: “We would urge everyone involved in the potential transfer of the Southern Cross homes to put the needs of the residents first, remembering that those living in the homes are very vulnerable and frail.

“Any older person or those caring for them who would like to know their legal rights with respect to care homes can call the Age UK freephone advice line on 0800 169 6565.”