Campaigners have claimed Britain's biggest care home operators have combined debts of more than £4.5bn.

An investigation by The Independent newspaper and Corporate Watch claimed the debts belonging to the three largest operators in the UK, which own nearly 800 homes between them, have now been rated as ‘risky' by credit agencies.

The financial collapse of one of Britain's largest care operators, Southern Cross, last year raised concerns about the care home market and how operators are funded.

‘It is absolutely essential that individuals have access to clear information about the strengths and liabilities of organisations looking after their mums and dads,' said shadow health secretary, Andy Burnham.

‘The Government said it will legislate soon on social care and it is essential that it learns the lessons of Southern Cross, puts some stability into this market as the current high-rolling, high-risk economics we see is not compatible with the care of elderly people.'