Care Homes Face Increased Wage Bill From April 1st as New NLW Comes Into Force

The National Living Wage (NLW) has risen by 9.8% from £10.42 to £11.44, an increase of £1.02, the largest ever increase in the minimum wage in cash terms and the first time it has increased by more than £1.

Research from social care leadership body Skills for Care has revealed that more than nine in ten independent care providers will face an increased wage bill in line with the new National Living Wage (NLW) from April 1

Skills for Care estimates that approximately 94 per cent of adult social care providers in the independent sector paid at least some of their workers below the April 2024 mandatory NLW (£11.44) and will be directly affected by its introduction.

In a new report Pay in the adult social care sector Skills for Care calculates that the median hourly rate for a care worker in the independent sector was £11.00 as at December 2023 (58 pence above the 2023 NLW).

This varies across the regions, with the highest median hourly pay rates recorded in London (£11.31) and the lowest in the West Midlands (£10.80).

The report finds that over the nine months to December 2023, the nominal median care worker pay had increased by 8.8 per cent (89 pence per hour) since March 2023, delivering a real terms pay increase of 63p per hour (6.1 per cent

The report also highlights that recruitment and retention challenges have resulted in ongoing decreases in the proportion of care workers paid on the “wage floor”, ie, on or within 10p of the NLW), which presently stands at 19 per cent, or almost one in five of all workers.

The report also reveals that experienced care workers (those with 5 or more years in the sector) are paid just 8p per hour more than new entries to the sector, prior to March 2017 this gap was between 26p and 37p.

Karolina Gerlich, CEO of The Care Workers’ Charity says:

“Despite the profound impact on the lives of those drawing on social care, care work has long been undervalued and unfairly thought of as an unskilled role. This is far from the truth. Care workers shoulder wide-ranging clinical responsibilities, from administering medication to providing vital support such as stoma care. Care workers extend palliative support within communities, collaborate closely with district nurses, coordinate with GP’s and administer end-of-life pain relief. They support people with their mental health and provide companionship. Care workers support people in living the lives they want to live in a holistic way that continues not to be recognised or respected.

Everybody deserves to be paid at a level that promotes financial stability and enhances overall quality of life. Care workers also deserve a wage that reflects the skills, experience, and immense responsibilities of the role. The Care Workers Charity has long advocated for fair compensation, calling for a minimum wage of £15 per hour through our workforce advocacy programme.

We cannot expect care workers to deliver excellent care without adequate support themselves. The findings of the Skills for Care Pay in Adult Social Care Report underscore the urgent need for action to ensure that care workers are fairly compensated for their invaluable contributions to our society.”