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 Governance and Civic Services

London Borough of Merton
c£130,000
As the Council’s statutory Monitoring Officer, you will champion strong governance and integrity Merton, London (Greater)
Recuriter: London Borough of Merton

Executive Director Corporate Resources, Section 151 Officer

Cheshire West & Chester
up to £160,217
The successful candidate will combine outstanding professional credibility and the ability to influence Chester, Cheshire
Recuriter: Cheshire West & Chester

Director of Finance

Torbay Council
highly competitive
Not only will you fulfil the role of statutory Chief Financial Officer you will be part of a directorate team Torbay, Devon
Recuriter: Torbay Council

Housing Disrepair Lawyer - Harlow District Council

Essex County Council
£45.0000 - £55.0000 per hour
Housing Disrepair Lawyer - Harlow District CouncilLocation, HarlowFull time, Temporary 3Month Contract £45-£55 per hour (Umbrella) dependant on experi England, Essex, Harlow
Recuriter: Essex County Council

Procurement & Contracts Lawyer - Harlow District Council

Essex County Council
Up to £33.0000 per hour
Procurement & Contracts Lawyer - Harlow District Council Location, HarlowFull time, Temporary 3-Month Contract, 37 Hours per Week £25.73 PAYE / £33.00 England, Essex, Harlow
Recuriter: Essex County Council
Linkedin Banner