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.

Devolutions clean air dividend image

Devolution's clean air dividend

Jane Burston of Clean Air Fund argues that tackling air pollution is one of the clearest ways for local leaders to prove devolution can transform lives.
SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director - Growth

Warrington Borough Council
£143,662 per annum
We are seeking an innovative and forward-thinking Executive Director of Growth to join us as Warrington Warrington, Cheshire
Recuriter: Warrington Borough Council

Executive Director - Transformation and Improvement

Warrington Borough Council
£143,662 per annum
Warrington Borough Council is currently delivering a significant programme of recovery and transformation Warrington, Cheshire
Recuriter: Warrington Borough Council

Registration Service Advisor

Essex County Council
Up to £25959.00 per annum
Registration Service AdvisorFixed Term, Full Time£25,959 Per AnnumLocation
Recuriter: Essex County Council

Part Time Pre-school / Nursery Assistant (term time only)

Essex County Council
Up to £25959.00 per annum + Pro Rata
Part Time Pre-school / Nursery Assistant (term time only)Permanent, Part Time£25,959 Per Annum, full time equivalentLocation
Recuriter: Essex County Council

Team Leader – Traffic Network Management

Hounslow London Borough Council
£52,194 – £57,402
We’d love you to join us at the London Borough of Hounslow! Hounslow (City/Town), London (Greater)
Recuriter: Hounslow London Borough Council
Linkedin Banner