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

Principal Housing Lawyer - Epping Forest District Council

Essex County Council
Up to £48.50 per hour
Principal Housing Lawyer - Epping Forest District Council Epping, Essex£37.82 PAYE / £48.50 Umbrella Full-Time, Temporary 36 Hours per Week Closing Da England, Essex, Epping
Recuriter: Essex County Council

Part Time Mobile Library Supervisor (HGV Class 2 Driver)

Essex County Council
£25959.00 - £28621.00 per annum + Pro Rata
Part Time Mobile Library Supervisor (HGV Class 2 Driver)Fixed Term, Part Time£25,959 to £28,621 Per Annum, full time equivalentLocation
Recuriter: Essex County Council

Head of Practice Development (Adult Social Care)

City of York Council
City of York Council
Recuriter: City of York Council

Head of Service, Operations (Adult Social Care)

City of York Council
£60,662 to £68,265 plus reviewable market supplement up to £79,480 alongside an attractive benefits package and relocation support.
York is at an important point in the development of our Adult Social Care services. York, North Yorkshire
Recuriter: City of York Council

Pre-Construction Housing Delivery Team Manager

Essex County Council
£550.0000 - £600.0000 per day
Pre-Construction Housing Delivery Team Manager - Harlow District CouncilHarlow District CouncilTemporary, Full Time£550.00 - £600.00 per day/umbrellaL England, Essex, Harlow
Recuriter: Essex County Council
Linkedin Banner