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Unfunded National Living Wage Will Put Care Services Into Crisis

Care England, the largest representative body for care providers, exhorts the Chancellor to put more money into the care sector to fund his announcement of a National Living Wage.

Professor Martin Green, Chief Executive of Care England, said:

“The care sector cannot sustain an unfunded increase in labour costs. We have been calling for the Government to establish a Living Wage, but have underlined this can only be done when the Government funds care properly.

In many areas, local authorities are funding older people’s residential care, at a rate which works out to be approximately £3.301 an hour, and is totally unsustainable. With 60% of costs in staffing, the announcement of a significant increase in staff costs, will leave some businesses unable to survive”.

Martin continued:

“Care is a regulated sector, and so services cannot by law reduce staffing levels and this measure, unless it is properly funded, could lead to a reduction in provision and even more pressure placed upon the NHS.

Nobody in this Government seems capable of understanding that the current level of funding for adult social care is totally inadequate and they must heed the warnings of many independent commentators, and the NHS, that unless they put more money into social care, the system is in danger of collapse”.

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