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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Head of Planning Enforcement & Building Control

Redbridge London Borough Council
£86,817 - £90,222
We’re looking for someone who can build on what we already do well, while bringing an outward focus to how we operate London (Greater)
Recuriter: Redbridge London Borough Council

Chief Executive

Cheshire East Council
Competitive
You will lead an organisation with ambition, complexity and reach, while helping shape the future of a place Crewe, Cheshire
Recuriter: Cheshire East Council

Director of Environmental and Commercial Services

Reading Borough Council
£96,900 - £112,827 (plus £10k Market Supplement)
The services you will lead are fundamental to that ambition. Reading, Berkshire
Recuriter: Reading Borough Council

Premises Lead

Essex County Council
£33711 - £39659 per annum
Visa sponsorship is not available for this role, so applicants must have current, unrestricted right to work in the UK.*Please note
Recuriter: Essex County Council
Linkedin Banner