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.

Designing for cohesion image

Designing for cohesion

Tom Fairey, Development Director at Alliance Leisure, discusses how community spaces can strengthen local connections.
SIGN UP
For your free daily news bulletin
Highways jobs

Procurement & Contract Lead

Barnet London Borough Council
£42,771 - £46,968
Are you seeking a varied and fulfilling role in a supportive organisation? Barnet (London Borough), London (Greater)
Recuriter: Barnet London Borough Council

Assistant Building Surveyor

Barnet London Borough Council
£39,276 - £42,771
The postholder will work under the guidance of senior surveyors to gain practical experience across all core building surveying disciplines. Barnet (City/Town), London (Greater) / Hybrid
Recuriter: Barnet London Borough Council

Finance Officer (Non-Accounting)

Barnet London Borough Council
£34,488 - £36,585
The Accounts Payable Administrator is responsible for accurately processing and managing all invoices, bills, and payments for the organization. Barnet (City/Town), London (Greater)
Recuriter: Barnet London Borough Council

Digi-go Driver

Essex County Council
Up to £25959.00 per annum
Digi-go DriverPermanent, Full Time£25,959 per annumLocation
Recuriter: Essex County Council

Presentation Assistant

Durham County Council
£24,796 (£12.85 per hour)
Are you looking for work that fits around your schedule and lifestyle?   Have you ever wanted to work in a unique cultural attraction setting such as Durham
Recuriter: Durham County Council
Linkedin Banner