Recruitment company Welcome Community Care Domiciliary Agency (Welcome) is to lose its contract to supply home care services to Birmingham City Council.

The move comes after three care workers from the agency – Nordia Noteman, Maxine Davidson and Rosemarie Malvo – were cleared of assaulting 89-year old Lucy Neal.

Birmingham City Council has responded to the verdict by refusing to renew the agency’s contract.

Birmingham Social Care and Health said: “Birmingham City Council is concerned by this verdict which has the potential to undermine people’s confidence about receiving care in their own home. In our view, the behaviour of the care staff employed by Welcome Community Care Agency was unacceptable. We expect each agency and its staff to meet high standards.

The case was brought to court after Mrs Neal’s son installed a secret camera in her house. The prosecution alleged the tape showed the care assistants mistreating Neal.

District Judge Neil Davison cleared the three of assault but said: “The standard of care fell below that which could be expected”.

The National Care Standards Commission, the government’s care watchdog, last month rejected the firm’s application to its registration scheme. Welcome has not appealed.