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.

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

Assistant Historic Environment Record Officer - FTC

Essex County Council
£25081.00 - £26679.00 per annum + + 26 Days Leave & Local Gov Pension
Assistant Historic Environment Record OfficerFixed Term, Full TimeUp to £26,679 per annumLocation
Recuriter: Essex County Council

Regulatory Solicitor

North Yorkshire Council
£38,220 - £51,356
The Legal Service is part of Legal and Democratic Services (‘LDS’) within the Chief Executive’s Group. Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Regulatory Legal Officer

North Yorkshire Council
£27,254 to £34,434 per annum
If you have the relevant skills, drive and ambition to succeed, we want to hear from you! Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner