Laura Sharman 28 July 2015

Living wage could trigger ‘catastrophic failures' in homecare

The new National Living Wage could lead to ‘catastrophic’ failures in the homecare sector, an open letter to the chancellor is warning.

Homecare providers have written to George Osborne warning that the new policy will cost councils and the NHS £753m in the first year alone. It argues that this will put a ‘significant’ burden on local councils and could make many homecare services financially unviable.

The letter states: ‘Without urgent action from Government and local councils to address the deficit in funding, continued supply of state-funded homecare will become unviable at a time when Government looks to social care services to support an over-stretched NHS, particularly supporting people to leave hospital promptly.

‘Market exit by providers would cause considerable distress for people who use homecare services and their families; create a significant burden for local councils who would have to find replacement providers and provide uncertain employment prospects for trained and committed careworkers.’

Care providers are calling on the Government to address the social care wage bill through the forthcoming Spending Review. The letter also calls for a change in the VAT exemption for welfare services to ‘zero-rated’ status and for tax incentives to allow people to pay for their own social care.

Devolutions clean air dividend image

Devolution's clean air dividend

Jane Burston of Clean Air Fund argues that tackling air pollution is one of the clearest ways for local leaders to prove devolution can transform lives.
SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker - Children in Care, West Essex

Essex County Council
Up to £0.0000 per annum
Social Worker - Children in Care, West EssexPermanent, Full Time£36,124 to £51,834 per annumLocation
Recuriter: Essex County Council

Reparation and Volunteer Development Officer

North Yorkshire Council
£38,220 - £42,839 per annum, pro rata
We are looking to recruit a Reparation and Volunteer Development Officer to join the Youth Justice Team Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Deputy Manager - Children's Homes Service

Durham County Council
Grade 11, £40,777 - £45,091 per annum. Pay award pending.
As a Deputy Manger you will work directly with children and young people, their families and carers, as well as other relevant professionals identifie Spennymoor
Recuriter: Durham County Council

Apprentice Financial Management

Durham County Council
£15,434 per annum (£8.00ph) NMW
Earn.  Learn.  Qualify.   Do you want to earn while you learn, with the chance of progression once you qualify? Do you want the opportunity to grow, d Durham
Recuriter: Durham County Council

Apprentice Civil Engineer

Durham County Council
£15,434 per annum (NMW in first year of apprenticeship)
Earn.  Learn.  Qualify. Do you want to earn while you learn, with the chance of progression once you qualify? Do you want the opportunity to grow, dev Durham
Recuriter: Durham County Council
Linkedin Banner