Scottish Families Face Year-Long Battles to Recover Thousands in Withheld Care Home Deposits

Scottish families report year-long delays in recovering up to £19,000 in care home deposits. Explore the regulatory gaps affecting self-funding residents in 2026.

By: AXL Media

Published: Apr 6, 2026, 6:50 AM EDT

Source: Information for this report was sourced from BBC News

Systemic Delays in Deposit Refunds

Families across Scotland are reporting significant financial obstacles when attempting to reclaim deposits from Morar Care Group, a provider operated by Simply UK. The "initial fees," which can amount to as much as £24,000 for self-funding residents, are intended to be returned upon a resident's departure or death. However, multiple families informed the BBC of delays exceeding 12 months. In one instance, the widow of a resident who died in June 2023 was owed nearly £19,000 and did not receive payment until January 2025, only after the intervention of national media.

Allegations of Obstructive Refund Policies

Internal communications from local councils have characterized Morar’s refund policy as "unnecessarily complicated." One council social work officer expressed specific concern for residents who lack the mental capacity or family support to challenge these financial hurdles. While the UK Competition and Markets Authority (CMA) stipulates that deposits should typically be returned within 28 days, Morar’s contracts reportedly omit a specific timeframe for repayment. The operator has denied creating unnecessary obstacles, citing the need for "legal checks" to ensure funds are paid to the correct parties.

Care Standard Concerns and Regulatory Gaps

The financial disputes coincide with upheld complaints regarding care standards at several Morar facilities. At Castlehill in Inverness—now renamed Morar Highland—the Care Inspectorate upheld seven complaints regarding a resident's treatment. Similarly, at Oakeshott House in Stirling, eight complaints were upheld, including issues related to inadequate pain relief for a terminal patient. Families seeking redress discovered a significant regulatory gap: while the Care Inspectorate oversees clinical care, there is currently no ombudsman in Scotland with the remit to investigate financial complaints for self-funding residents.