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

Social Worker (CWD North Team 1)

Essex County Council
£38487.00 - £51834.00 per annum
Social Worker (CWD North Team 1)Secondment, Full Time£38,487 up to £51,834 per annumLocation
Recuriter: Essex County Council

Case Responsible Officer (Substance Misuse)

Gloucestershire County Council
£37,280 - £40,777 per annum
We are looking for passionate, motivated and resilient individuals to join our Youth Support Team Gloucester, Gloucestershire
Recuriter: Gloucestershire County Council

Executive Liaison Support Supervisor - Basildon Borough Council

Essex County Council
Up to £23.0400 per hour
Executive Liaison Support Supervisor - Basildon Borough CouncilBasildon, Essex £23.04 PAYE / £29.50 Umbrella Full-Time, Temporary - 36.25 hours per we England, Essex, Basildon
Recuriter: Essex County Council

Specialist Support Officer - Basildon Borough Council

Essex County Council
Up to £18.2000 per hour
Specialist Support Officer - Basildon Borough CouncilBasildon, Essex £18.20 PAYE / £23.31 Umbrella Full-Time, Temporary - until end of December 2026 3 England, Essex, Basildon
Recuriter: Essex County Council

Programme Support Officer

Durham County Council
Grade 5 £26,403 - £28,598 (Pay award pending)
Help to Shape the Creative Heartbeat of County Durham’s New Landmark    Opening in summer 2026, The Light will be County Durham’s newest cultural dest Durham
Recuriter: Durham County Council
Linkedin Banner