William Eichler 29 March 2016

Care home crisis will be pushed to ‘breaking point’ by living wage, say councils

The introduction of the National Living Wage (NLW) will push social care services closer to breaking point, council leaders warn.

The Local Government Association (LGA) says the introduction of the NLW on April 1 will destabilise the care provider market by adding a significant cost to the social care system.

It estimates it could cost town halls an absolute minimum of £330m in 2016/17 to cover increased contract costs to home care and residential care providers.

Council tax rises to increase funding specifically for social care will bring in around £372m in 2016/17, but most of this will go to paying for the NLW.

The LGA urges the Government to bring the £700m of new funding earmarked for social care through the Better Care Fund by the end of the decade forward to this year.

‘Councils fully support proposals to introduce a National Living Wage to help ensure care home staff receive a fair day's pay for a fair day's work,’ Cllr Izzi Seccombe, Community Wellbeing spokeswoman at the LGA, said.

‘However, the cost of implementing it will significantly add to the growing pressure on services caring for the elderly and disabled which are already at breaking point.’

Cllr Seccombe argued a lack of funding is already forcing providers to extricate themselves from the publicly-funded care market in order to focus on people who are able to fully fund their own care.

‘We know that care home and domiciliary care providers cannot be squeezed much further,’ she said.

‘We will be organising an urgent summit with them to unite our concerns that a care home crisis is creeping closer to reality and behind calls for urgent additional funding.’

SIGN UP
For your free daily news bulletin
Highways jobs

Homefinder Officer - Harlow Council

Essex County Council
Up to £17.7100 per hour
Homefinder Officer - Harlow Council Location, HarlowFull time, Temporary 3 Months Contract £17.71 PAYE / £22.18 Umbrella Closing Date
Recuriter: Essex County Council

Educational Psychologist

West Northamptonshire Council
£49,685 - £60,048
West Northamptonshire Educational Psychology Service is seeking to recruit creative and innovative psychologists to expand its existing team of skilled and friendly staff, as we develop and grow. Northampton
Recuriter: West Northamptonshire Council

Facilites Assistant

Ashfield District Council
£32,061 - £34,434 per annum
A great opportunity has arisen to be involved in the assistance of managing key Council facilities Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Vehicle Technician

Ashfield District Council
£36,561 - £38,934 per annum including market forces supplement
We are looking for someone who is highly motivated, enthusiastic, and excited about keeping our wheels on the road. Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Contract Liaison Officer

Ashfield District Council
£35,412 - £38,220 per annum
You will also complete stock condition surveys to properties and assets managed by the Council Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council
Linkedin Banner