There is a "credible risk of service disruption" at one of the biggest home care providers in England, care inspectors have warned.

The Care Quality Commission (CQC) has raised concerns that Allied Healthcare may not be able to continue to operate after November 30.

The company is one of the largest home care providers in England and provides care services across 84 councils to around 9,300 people.

CQC said that it has written to 84 English local authorities who commission some sort of care services through Allied Healthcare to notify them of it's concerns.

But Allied Healthcare issued reassurances that it's operations were "sustainable and safe".

Allied Healthcare provides a number of home care services in Southend and Basildon, and has offices in Pembroke House, Pitsea, and Seedbed Centre, on Vanguard Way, Shoebury.

Ian Hudspeth, chairman of the Local Government Association's (LGA) Community Wellbeing Board, said: "The LGA is working closely with the Care Quality Commission, the Department of Health and Social Care and directors of adult social services and their councils to ensure that contingency plans are in place should they be needed.

"The notice refers to likely, not definite, business failure and whatever happens the priority for councils is to ensure continuity of care for people who need support, and to retain the highly valued staff that deliver these services."

George McNamara, director of policy at the charity Independent Age, said: "This is a deeply worrying time for the thousands of older people and their families up and down the country who rely on Allied Healthcare as a vital lifeline of care and support.

"The Government must play an active role in bringing together all parties and, if necessary, step in and do all possible to ensure older people do not become the victims of a broken system."

A spokesperson for Allied Healthcare said: “We are surprised and deeply disappointed by CQC Market Oversight’s decision, which we regard as premature and unwarranted. 

“We have demonstrated throughout our discussions with the regulator that Allied Healthcare’s operations are sustainable and safe, that we have secured a potential replacement of our credit facility, that there is no risk to continuity of care and that we have a long-term business plan in place that will continue to deliver quality care across the UK. 

“The CQC has disregarded these assurances in spite of the robust evidence we have provided.

“By issuing a Stage 6 notification, the CQC is putting significant pressure on already stretched and pressurised local authorities and clinical commissioning groups.

“Continuity of quality care is our number one priority. We will continue to provide the services entrusted to Allied Healthcare and will work closely with all commissioners of care throughout this period.”