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

Sessional Invigilator

Durham County Council
Grade 4 - £26,427 - £27,709 pro rata to hours worked.
We are looking for Sessional Invigilator's to support the delivery of examinations and assessments across DurhamLearn and other learning venues within Durham
Recuriter: Durham County Council

Team Leader Transactional Services

Durham County Council
£42,123 to £46,579 p.a. (Grade 11)
An exciting opportunity has arisen within Durham County Council’s Transactional Services Team for a full time permanent Team Leader.   WHAT IS INVOLV Spennymoor
Recuriter: Durham County Council

Enhanced Teaching Assistant

Durham County Council
£27,274 - £29,542 pro rata
Required to start Jaunary 27 until 31 August 2027. The Governors of Etherley Lane Nursery School Federation are seeking to appoint a highly motivated, Durham
Recuriter: Durham County Council

School/Settings Leadership Advisor

Durham County Council
Soulbury 21-23 + 3 SPA points, £71,013 - £77,403 per annum.
We are looking to recruit an outstanding school leader to work effectively within Education Durham to provide strategic input and practical support wh Durham
Recuriter: Durham County Council
Linkedin Banner