IHA: wage increase will result in more closures

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

The rise of 7.1 per cent in the National Minimum Wage (NMW) from October 2003 could force more care homes into bankruptcy as the sector as a whole faces a £300 million increased pay bill. The Independent Healthcare Association (IHA) says this will threaten the government targets under the NHS Plan and cause yet more delayed discharges form NHS hospitals. IHA chief executive Barry Hassell said it was now the imperative, if further care home closures and the devastating impact on residents and staff were to be avoided, that local authorities increase their fees to care homes accordingly. “This will mean reviewing fees already set for April 2003,” Mr Hassell said. “It is vital that care home residents do not suffer as a result of this NMW increase. The government and local authorities must accept their responsibility to fund better staff wages accordingly for publicly supported residents. “This NMW increase comes on top of the forthcoming rise in national insurance contributions and rapidly rising liability ins

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