Signature Senior Lifestyle may be Britain’s most expensive care home chain, say industry analysts. It operates 36 homes, mostly in the south-east of England around London, and is one of several UK private care chains bought in recent years by Revera Inc, a Canadian care company. Revera is, in turn, wholly owned by the pension fund for Canadian federal government workers, a C$230bn (£150bn) investment firm.
Signature promises “award-winning care, luxurious surroundings and top-quality dining and nutrition”. Indicative fees of £1,900 a week are quoted online for one of its homes, but these can increase if more nursing is needed. The chain is building more homes at a rate of three a year.
This week, video footage emerged of care workers at Signature’s Reigate Grange care home verbally and physically abusing Ann King, an 88-year-old resident with dementia. The home has apologised and said it was “rogue behaviour”.
The large majority of Signature care homes are ranked “good” by the Care Quality Commission, and five of the 34 that have been assessed by the regulator meet the threshold of “outstanding”. Signature’s portfolio expanded in July 2021 when it took over the running of 18 Sunrise Senior Living care homes, previously part of a US chain.
Trade unions in Canada have campaigned for their pension fund to turn Revera over to public ownership, arguing that “staffing shortages, unsanitary conditions, and poor quality of care that leads to higher rates of acute illness” are among the dangers of for-profit long-term care.
Tax researchers have claimed that Revera has avoided paying UK corporation taxes on Signature’s operations, and has shifted profits offshore “through complex corporate structures and tax haven subsidiaries”. The Centre for International Corporate Tax Accountability and Research (Citctar) reported in February 2021 that many SSL homes were owned through Jersey-based real estate investment trusts.
The latest available accounts, when SSL was running 22 homes, showed income of £72m in 2020, but a loss of £1.3m. While its ultimate controlling party is the Canadian pension fund and the ultimate parent company is Revera, its immediate owner is SSL Group (Guernsey) Ltd. In 2020 it received £1.1m in government grants. Citctar found it reported losses in the UK, but reported profits in related US entities. Tax avoidance is not illegal.
Asked for a response to the tax avoidance allegation, Revera Inc in Canada said: “Revera structures our affairs in a manner that abides by all laws in the jurisdictions where we operate.” Signature Senior Lifestyle reiterated the same point about how Revera structured Signature’s affairs.
