Concerns for homecare over national living wage
- 28 Jul
The UK HomeCare Association has said that an increase in staff costs could see a lot of businesses go bust.
In a letter to chancellor George Osborne the UK HomeCare Association, that support 880,000 older people with disabilities has warned that the costs of the “national living wage” could trigger a “catastrophic failure” in the homecare market, reports the Guardian.
Their concern is that lack of increased funding will mean that businesses will go bust after increasing staff costs to that of the national living wage.
The UKHCA says meeting the living wage bill will require a £753m increase in funding from councils and the NHS in the first year alone. It says local authorities currently pay homecare providers an average of £13.66 an hour, but estimates that the new arrangements will cost it £16.70 an hour.
The letter states: “As major providers in the homecare sector, delivering together over 47m hours of homecare care a year, we welcome [the] government’s commitment to low-paid workers through a new National Living Wage. However, unless the additional costs are fully funded, there is a serious risk of catastrophic failure to support people who receive state-funded care at home. 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.”
UKHCA policy director Colin Angel said: “Providers are particularly concerned that they’re not going to be able to deliver services to people who are funded by local authorities. There is certainly anxiety that providers will be going out of business and that those providers won’t be there to carry on delivering services to some of the most frail and vulnerable members of society.”
A government spokesman said: “The National Living Wage will benefit hundreds of thousands of care workers who will see their pay increase. The overall costs of providing social care will be considered as part of the spending review later this year, and we are working with the care sector to understand how the changes will affect them.”
What do you think of this? Tweet us your comments @suppsolutions
- 08 Nov
NHS BOSS SETS OUT A CASE FOR CASH BOOST
The speech by Mr Stevens at the NHS Providers' annual conference of health managers is being made at the time when three reputable health think-thanks- the Health Foundation, the King's Fund and the...
- 09 Jun
THERESA MAY PLEDGES TO REPLACE THE MENTAL HEALTH ACT 1983
According to Ms May, the new bill would introduce the following:According to the Tories, the proposals were described as the biggest change to mental health treatment law in over 30 years.Ms May...
- 30 May
THE PRESENT FIRST PRIME MINISTER OF SCOTLAND IS TO PLEDGE AGAINST ANY PLANS TO PRIVATISE THE NHS
It is also expected that Sturgeon will do the following as proof of her party's commitment to fighting against further austerity:Sturgeon said this before Tuesday's manifesto launch:"While the polls...
- 17 Mar
402 MILLION POUNDS WILL BE INVESTED IN COUNCILS WITH THE GREATEST HOMELESSNESS DEMAND FROM APRIL 2017
Presently, funding is only used for homeless households and not for the prevention of homelessness in the first instance.The funding by the Department for Communities and Local Government is set to...
- 15 Mar
RULES AROUND PERSONAL INDEPENDENCE PAYMENTS MAY CHANGE ON THURSDAY
Ministers have advised chief executives of over 30 charities which claimed that people will be left without vital financial support, to restrict access to a disability benefit.The Disability Benefits...
- 06 Mar
THE GOVERNMENT HAS BEEN URGED BY THE BMA TO INCREASE HEALTH SPENDING BY 10 BILLION POUNDS
This increase in health spending to a proportion of GDP that matched that of the 10 leading economies across Europe could pay for at least 35,000 extra beds a day and many more GP's, according to the...
- 05 Sep
MANY DOMESTIC VIOLENCE REFUGES AT RISK OF CLOSING DUE TO HOUSING BENEFIT CAP
Women who have been victims of domestic violence as well as their children are at risk of falling into the hands of their violent partners if the government caps housing benefit in the social sector...
- 03 Sep
Data on disability benefits refused by DWP
DWP officials have refused a second request for basic information on disability benefits using the “Section 22” exemption they used previously, reports The Independent.The Department had been...
- 02 Sep
UN to investigate how welfare reforms will affect disability rights
A disability charity in Scotland has said it’s been contacted by the UN’s Committee on the Rights of Persons with Disabilities as part of an inquiry into Britain’s treatment of people with...
- 01 Sep
Benefit cuts affecting 48,500 families in Liverpool
Analysis from Liverpool City Council has found that around 48,500 households are likely to lose their benefits due to new government reforms, reports the Liverpool Echo. Councillor Jane Corbett has...
How to Fund Housing Support and Social Care Services Good clear delivery of some complicated information. Jaqui Smith - Young Womens Housing Project