Ceredigion County Council will stick with plans to keep hold of Hafan y Waun Care Home despite “unprecedented” budget pressures, a committee has heard.

Under threat last year after the company that ran it announced it would be closing the facility down, Ceredigion County Council said it would do everything it could to keep the facility open.

In draft budget proposals, the council said that plans to bring the home under council control would cost £1.1m, but despite facing a budget gap of more than £18m, the plan to bring the home into the council fold will go ahead.

Scrutiny committee members heard that the “insourcing of Hafan y Waun Care Home, Aberystwyth creates a cost pressure due to the transition of staff to council terms and conditions which includes access to the Dyfed Pension Fund and higher enhancements for shift working at nights and during weekend and bank holiday working.

“The £1.1m shown is after including circa £400,000 of reserves.

“Allowing the Care Home to close was not a realistic proposition and would have led to most residents being placed out of county.

“There are a range of opportunities on the horizon for a building that is underutilised, so this will create the ability to reduce this cost pressure.

“Whilst there has also been a considerable increase in Out of County Child placement costs (low number but high individual cost), the new strategy of creating in county provision should eventually produce savings, but the increase in placement volumes significantly outweighs any savings.”