Extra expenditure for homecare providers

Posted on February 1st, by editor in Caring Times. No Comments

Last month the Government announced that it has accepted the Low Pay Commissions recommendation to increase the National Minimum Wage adult rate from £3.70 to £4.10 in October 2001 and to £4.20 in October 2002. It could provide an extra £16 per week for homecarers in fulltime employment but put an added burden on homecare providers. It could also cause a backlash in a loss of homecare industry jobs because comparative job opportunities and wages would also increase. Providers overheads would obviously increase unless local authorities can find the cash to pay the extra required to cover the additional costs caused by the NMW increase. Some homecare providers would have to incur additional expenditure when the Employment Agencies Regulations comes into force later this year. Under the new regulations, if a homecare provider contracts directly with its workers and delivers a managed/supervised service to clients, the workers are employed, in the broad sense, by the provider but are acting under the control

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