Latest Public Sector News

30.03.16

National Living Wage risks causing care funding crisis – LGA

The National Living Wage, which is due to be introduced this week, will risk pushing social care funding into crisis, the LGA has warned.

The LGA said that the cost of increasing the minimum wage to £7:20 an hour, which comes into effect on Friday, will be passed on to councils through increased contract costs to home and residential care providers, and will cost at least £330m in 2016-17 and could use up all of the £372m councils are raising from a new social care precept.

Cllr Izzi Seccombe, community wellbeing spokeswoman at the LGA, said: “Councils fully support proposals to introduce a National Living Wage to help ensure care home staff receive a fair day's pay for a fair day's work. However, the cost of implementing it will significantly add to the growing pressure on services caring for the elderly and disabled which are already at breaking point.

“Social care remains in crisis. Recent measures announced for social care will help but the immediate challenges remain. Councils will continue to do all they can to maintain the services that older and vulnerable people rely on but extra council tax income to pay for social care in 2016-17 will not bring in enough money to plug growing funding gaps and prevent the need for further cutbacks to social care services.”

Cllr Seccombe added that a lack of funding risks leading to providers switching to providing private care to individuals instead of working with public sector partners.

The LGA are organising a summit with care providers to unite calls for increased funding to compensate for the cost of the National Living Wage, including for the government to bring forward £700m of funding from the Better Care Fund.

The LGA warned ahead of the most recent Budget announcement that the National Living Wage is adding to the pressures on councils.

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

National policies won’t fix local problems

National policies won’t fix local problems

Andrew Carter, the recently-appointed chief executive of Centre for Cities, argues that the new government will only succeed if it focuses on implementing policies that are adaptable to place-based more > more last word articles >

public sector focus

View all News

comment

Innovation in commissioning services

26/06/2017Innovation in commissioning services

Malcolm Harbour CBE, who wrote Parliament’s first report on innovatio... more >
Engaging the voluntary sector: how to make devolution a success

26/06/2017Engaging the voluntary sector: how to make devolution a success

Paul Winyard, senior policy officer at the National Council for Voluntary O... more >

interviews

HSCN: The enabler for a more joined-up public sector

26/06/2017HSCN: The enabler for a more joined-up public sector

Mark Hall, Chief Assurance Officer at Redcentric, discusses NHS Digital&rsq... more >

most read

the raven's daily blog

Councillors celebrated in Queen’s Birthday Honours list 2017

19/06/2017Councillors celebrated in Queen’s Birthday Honours list 2017

A number of local government leaders and figures have been named in the Queen’s 2017 Birthday Honours list. The list recognises the achievements of people across a ... more >
read more blog posts from 'the raven' >

editor's comment

15/06/2017Challenges remain

As PSE went to press, we were days away from finding out which political party or parties would be leading the country following Theresa May’s decision to call a snap general election for 8 June.  Whoever enters the door at No.10, irrelevant of their political colour, is faced with serious challenges, from social care to the NHS, housing to the economy, and, of course, the all-consuming and imminent Brexit negotiations which will have ramifications for generations to... read more >