TUC predicts £114m boost to Dorset's economy if social care wages are raised
They say it would improve care work, quality and reliability of services
New research from the Trades Union Congress (TUC) suggests Dorset and the BCP area's economy could generate an added £114m per year - if the minimum wage for care workers rose to £15 an hour.
The TUC says the move would help improve care work, the quality and reliability of care services, and end the recruitment and retention crisis in the sector.
There are currently 1,790,000 posts in social care, but around 165,000 of these are vacant.
The vacancy rate increased to a record 10.7% in 2021/22.
Wages
Nine out of ten care workers earn less than £15 per hour and many care workers are paid less than the real living wage (£10.90), and almost a quarter (24%) are employed on sero hours contracts.
The TUC argues that a £15 minimum wage across the social care sector would mean:
• An annual full-time wage of at least £29,250 for care workers.
• Pay rises for 541,700 care workers across England.
• Pay boost for high numbers of women workers (who make up 79% of care workers) and BME workers (who make up 31% of care workers), helping to reduce gender and race pay gaps.
James McKenna, from the TUC, said:
“Most families need social care services at some point. And we all want to know our loved ones will receive a high standard of care. But that’s only possible if social care jobs in the North West are paid well enough to attract and retain the right people.
“We’re calling for a £15 per hour minimum wage across the adult social care sector. This will reduce staff turnover and help fill the thousands of vacancies in care services.
“There’s another upside.
Our research shows that raising social care wages to £15 per hour will have wider economic benefits where care workers live and work. When they spend their higher wages, local businesses... will get a boost. And that will support job creation and higher wages for other workers too.”