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

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

Insight and Influence Lead

Royal Borough of Greenwich
PO4 - £49,056 to 52,194
Children don't just deserve a voice. They deserve influence. London (Greater)
Recuriter: Royal Borough of Greenwich

Business Support Apprentice

Essex County Council
Up to £15435.00 per annum
Business Support ApprenticeFixed Term, Full Time£15,435 Per AnnumLocation
Recuriter: Essex County Council

Data Partnerships Lead

Royal Borough of Greenwich
PO3 - £45,750 - £49,056
Make a real difference in someone's life by becoming a Shared Lives Carer. Shared Lives London (Greater)
Recuriter: Royal Borough of Greenwich

Lettings Officer

Royal Borough of Greenwich
Scale 6 - £35,520 to £36,585
You will help allocate council and housing association homes across the borough. London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner