Unfunded National Living Wage will put care services into crisis, says Care England
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Care England, which represents care providers, says the Chancellor must put more money into the care sector to fund his announcement of a National Living Wage.
The association’s chief executive, Professor Martin Green, said the care sector could not sustain an unfunded increase in labour costs.
“We have been calling for the Government to establish a Living Wage, but have underlined that this can only be done when the Government funds care properly,” said Prof. Green.
“In many areas, local authorities are funding older people’s residential care at a rate which works out to be about £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.
“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.”