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| National living wage threatens UK care sector, George Osborne told | National living wage threatens UK care sector, George Osborne told |
| (about 1 hour later) | |
| The introduction of a “national living wage” will leave the care sector at risk of “catastrophic collapse”, the head of the body representing the industry has said. | The introduction of a “national living wage” will leave the care sector at risk of “catastrophic collapse”, the head of the body representing the industry has said. |
| Five of the biggest care home providers in the UK have written to the chancellor, George Osborne, to warn that the plan will cost the sector £1bn by 2020, the BBC reported. | Five of the biggest care home providers in the UK have written to the chancellor, George Osborne, to warn that the plan will cost the sector £1bn by 2020, the BBC reported. |
| From April next year a minimum rate of £7.20 an hour will apply for workers aged over 25, rising to £9 in five years’ time. | From April next year a minimum rate of £7.20 an hour will apply for workers aged over 25, rising to £9 in five years’ time. |
| Four Seasons Health Care, Bupa, HC-One, Care UK and Barchester said they supported a national living wage but claimed that as staffing accounts for 60% of care, there would need to be efforts to rescue the care system. | |
| Their letter follows one last month from the UK Homecare Association, which said if the government did not act to address the funding gap, “continued supply of state-funded homecare will become unviable”. | Their letter follows one last month from the UK Homecare Association, which said if the government did not act to address the funding gap, “continued supply of state-funded homecare will become unviable”. |
| Martin Green, the chief executive of Care England, told the BBC: “Without adequate funding to pay for the national living wage, the care sector is at serious risk of catastrophic collapse.” | Martin Green, the chief executive of Care England, told the BBC: “Without adequate funding to pay for the national living wage, the care sector is at serious risk of catastrophic collapse.” |
| He said: “We want to work with the government to find a fair solution that will ensure the care sector can provide a safe and comfortable environment for older people who live in care homes.” | He said: “We want to work with the government to find a fair solution that will ensure the care sector can provide a safe and comfortable environment for older people who live in care homes.” |