A COMPANY which looks after people with learning disabilities has pulled out of its contract with Bury social services.

Solutions for Living says the council has not given it enough money to pay the carers it employs.

It has given the council five days notice that it will no longer run the contract from Sunday (Nov 11).

Social services bosses deny that they have under-funded the company. They have rushed to find another provider to take over the contract immediately so that residents do not suffer.

For five years, Solutions for Living have cared for around 20 adults with learning disabilities at houses in Bury, Prestwich, Radcliffe and Shuttleworth. Mr Phil Henderson, managing director, said he was "very unhappy" about the way social services had treated his company.

"They have failed to support us and have caused significant problems for myself and all of my staff during a difficult period," he said.

His company was paid by social services to care for people, and the contract provides for a yearly increase in fees to cover inflation.

But Mr Henderson said: "Wages paid to staff in the care industry have increased far beyond the amount provided for by the annual increase in our contracts."

The company went to arbitration, but the arbitrator sided with the council.

"Faced with this decision, the company had the choice of either reducing the level of services provided, which would have been unacceptable to the company and to the residents in the homes, or ceasing trading and handing the contracts back to Bury social services," said Mr Henderson, adding that the company could not continue trading while making a substantial loss every week.

He says staff will be transferred as well as the contract, and the company would do all it could to help a smooth transfer to a new provider.

Ms Julie Goulding, director of personal and community services, said the council had been in dispute with Solutions for Living for some time about financial matters.

"We went to arbitration and won, and their response has been to give us five days notice, which we found extremely disappointing," she said.

Ms Goulding disagreed with the company's claims that it had been given insufficient money -- indeed, she described it as generous.

She said the council was not planning on paying any more to the new provider, United Response, the adult arm of Barnardo's.

"We hope for a smooth changeover on Sunday," she said. "We will encourage Solutions for Living to liaise with United Response and the staff to be employed so that there is continuity of care for adults with learning disabilities by people who know them and understand their needs."