A care home operator has warned it may be forced to close some of its homes as its energy costs are set to rocket by at least £1.5m over the coming year.

Sheffcare, which runs nine homes across Sheffield, said the 18-fold increase in its gas bill was an "absolute horror".

Chief executive Claire Rintoul said: "At the moment we pay £90,000 a year on our gas bill and we have been quoted £1.6m. Electricity is another £1m".

Businesses are not covered by the price cap which applies to household bills.

Regulator Ofgem announced an 80% hike in its price cap for households last month, but firms have no upper limit.

That led former Labour chancellor Alistair Darling to warn it could be the "straw that finally breaks the camel's back" for small businesses.

Ms Rintoul said: "We cannot cut the food, we cannot cut the staff, we're not going to cut the trips, so all we can do is sit tight and hope this government does something, and then plan for the absolute worst case scenario.

"That is - and I can't believe I am saying this - we would have to close homes.

"But if we were in that position then everyone would be in that position and there would be no care homes left, and that is inconceivable isn't it?"

It is hoped plans on how to tackle the energy crisis will soon be revealed by new Prime Minister Liz Truss.

On Monday, business groups urged Ms Truss to take "big bold action" to help firms.

Federation of Small Businesses chairman Martin McTague said soaring energy bills "must be addressed urgently."

CBI director general Tony Danker said: "The exceptional circumstances we now face mean government must play a central role in supporting our economy."

Sheffcare is a not-for-profit organisation which started in 1994, when it took over the running of several homes from the local authority.

Ms Rintoul added: "We are a charity, so we are allowed to build up reserves, so that's our savings. But really that is money that gets invested back into the homes.

"Things need refurbishing, the rooms need decorating, things break all the time. We had to pay £9,000 for a washing machine this week, and a few thousand pounds for a bath. We are going to dip into that rainy day money but there is nothing we can cut."

The group is also struggling with rising food costs, and staff absences due to Covid.

Manager at Sheffcare home Grange Crescent, Asher Oliver, said: "I have to think of the heating, but we have the food bill, and at minimum we are spending £1,500 a week.

"Already I am over budget and we are only in September."

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