Councillors have chosen to close Halmer Grange - but promise that it will replace it with “improved, modern” alternatives.
Lincolnshire County Council’s executive agreed on Wednesday to shut Halmer Grange, in Grange Drive - leaving the services to be picked up by the private and voluntary sectors.
The 22-space home was graded excellent when last inspected by the Care Quality Commission in 2007 and catered for both elderly and disabled people.
Councillor Graham Marsh, executive councillor for Adult Social Care, said: “We have looked closely at the consultation and considered the feedback from all who responded and worked with community liaison groups around each home.
“We want to ensure older people have the best accommodation and services in place to support them and improved, modern accommodation will be provided in the areas where the five homes will close.
“We have ensured there will be adequate provision of intermediate, respite and day care in all these areas and in many cases these will be enhanced.
“Detailed plans will be in place for the transition which will involve staff consultation and working with those who use the services and their families.”
Spalding is one of five towns to lose a county council care home - with others to close in Lincoln, Boston, Gainsborough and Louth.
The council stressed that none of the homes will close until new services are ready to be used.
In Spalding County Court Care Homes is set to provide eight intermediate care beds and 14 respite care beds, while Age Concern is set to offer 51 day care places.
Coun Marsh added: “We remain committed to providing the best possible care for our growing population of older people in Lincolnshire and reshaping services to give greater choice and control for those who need support as they move over to their own personal budgets.
“We want to ensure they have the best quality of life, with effective support to help them live independently for as long as they are able.”
The closure could happen as early as the summer and is part of the council’s plans to save £1.9 million.
The authority argues that the move will actually increase the day care places on offer in Spalding and said the cost for care homes will drop.
Bosses say it costs £999 a week for a bed in the council care homes, a figure it says will drop to £500 a week under the new system.
The council is also looking to build a £5million-plus state-of-the-art dementia care centre in the town within the next two to three years.