The UK’s largest care home provider continued to collect cash from a local authority for 14 residents who had already died.

Southern Cross Healthcare was paid £60,000 by Aberdeen City Council over an eight month period between August 2007 and April 2008, but failed to tell council officials about the deaths.

The blunder only emerged when the mother of deputy council leader Kevin Stewart was billed in April for the care of her father - five months after he had died.

An inquiry was launched and it found the company had continued to charge the council for 14 of 19 residents after they had died.

It involved residents at six of Southern Cross’s 12 Aberdeen care homes - Bucksburn Care Home, the Cowdray Club, Devanha Gardens Care Centre, Maryfield East Care Centre, Maryfield West Care Centre and Persley Castle home.

Southern Cross apologised and repaid the £60,000.

A spokesperson said: ‘All the money owed to Aberdeen City Council was repaid in full immediately. We apologise to all concerned.’

A spokeswoman for Aberdeen City Council said that it was ‘satisfied’ there had been no criminal activity and that it was simply an ‘unfortunate mistake’.

The council currently has 43 residents in Southern Cross homes, at a cost of £8million a year.