Executive Chairman of North East Lincolnshire care provider urging for review of Autumn Budget
The appeal is backed by over 100 other providers
The Executive Chairman of a North East Lincolnshire care provider is calling on the Government to urgently review it's Autumn Budget to prevent the collapse of community care services across the country,
Paul De Savary from Home from Home Care, has signed an appeal to the Chancellor - backed by over 100 other providers - insisting the National Insurance and National Living Wage increases be looked at again.
He says it will have a huge impact on them:
"We employ, 550 staff and the cost of this, will be in excess of £450,000. I'm just talking about the National Insurance, which is absolutely huge. Then on top of that, the increases in the national living wage - and by the way we pay the real living wage, which is much higher than the national living wage - if we maintain that, that will cost us another £550,000.
"Social care is massively important. It affects everybody and over the years, what has been happening is it has been consistently underfunded by previous governments, as it is again being unfunded by this government, because all the money is going into the National Health. So we run very effective services within social care but the money has just not been coming in and now actually it's being taken from us through this."
Paul added that it's not fair on those using these services:
"Social care is massive. I mean, it encompasses so much that happens in the community. You know, you've got elder care, you have people with learning disabilities, you have people with very complex needs, specialist services, it impacts everybody, to a greater or lesser extent. So it is massive, and the problem is it's very nuanced. If something like this does go ahead, it has totally unintended consequences.
"The bigger problem is workforce because I know a number of providers who were paying the real living wage, which is higher than the national living wage and they're simply not going to be able to do it. So it's actually making it an even less attractive sector to work in, when we're already suffering from manpower person shortages. So, you know, we don't have enough staff within the sector already and now it's going to be made even less attractive."
Providers Unite launched the grassroots campaign to unite adult care service providers across the country, calling on Chancellor Rachel Reeves for an urgent review of recent Budget measures.
Without immediate intervention, Britain faces the "systematic collapse of community care services," putting at risk the well-being of over 1.2 million individuals who rely on these essential services.
Providers Unite brings together more than 125 signatories as a network of care providers serving communities nationwide, representing a vital workforce of 1.59 million and a sector contributing £68.1 billion annually to the national economy. With a funding gap of £8.4 billion needed by 2024/25, the community care sector is at a critical juncture. It urges the government to take action to secure the future of adult care services for millions who depend on them.
Key Highlights of the Campaign:
- An urgent appeal to the Chancellor for an immediate review of National Insurance and NLW increases to prevent the collapse of essential services.
- A network of providers collectively serving over 1.2 million individuals and employing 1.59 million professionals.
- An underfunded sector already requiring £8.4 billion in additional support to meet future demands, now faces finding an extra £1billion
Providers Unite is committed to working with government leaders and the broader community to ensure that the voices of adult care providers are heard. Its collective goal is to maintain and strengthen community care services across Britain.
They added in the letter, addressed to Rachel Reeves, that "we acknowledge the government’s responsibility to address the £59 billion public deficit, the new Budget measures threaten to deepen an already critical £8.4 billion funding shortfall in our sector."
A Department of Health and Social Care spokesperson said:
“This government inherited a social care system in crisis. We are determined to tackle the significant challenges and build a National Care Service so everybody can access the high-quality care they deserve.
“We have taken a critical step forward by introducing legislation that will establish the first ever Fair Pay Agreement for care professionals and we have increased the Carer’s Allowance earnings threshold by over £2,300, the biggest rise since the 1970s, giving unpaid carers the opportunity to earn more and care for their loved ones.
“On top of this, we have allocated at least £600 million of new funding for social care and £86 million for the Disabled Facilities Grant, which are part of a wider package to bolster support for councils.”