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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 14 hours 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.
Related: English care homes facing financial ruin, say councils
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.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.”