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

Technical Officer

Sheffield City Council
Grade 9 £47,181 to £51,356
Are you an experienced highways professional with a passion for highway asset management, maintenance delivery, and technical leadership? Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Team Leader (Section 278 / 38 Road Safety)

Cardiff Council
Grade 10 - £48,226 - £51,356
Cardiff is one of the UK’s fastest‑growing and most vibrant cities. Cardiff (Caerdydd)
Recuriter: Cardiff Council

Licensing Compliance Coordinator (Temp)

City Of Doncaster Council
£28,598 to £31,537
Do you want to work in job which makes a difference to the local community and the people who live there? Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

External Funding Development Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£46,206 - £62,451
External Funding Development Manager
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Casual Customer Operations Assistant

Wyre Borough Council
£12.85 per hour
Marine Hall is a vibrant and dynamic venue dedicated to delivering exceptional experiences for our audiences and customers. Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council
Linkedin Banner