Report finds private sector is 'barrier' to social care improvements in Wales
The report from the Association for Public Service Excellence (APSE) was commissioned by UNISON Cymru Wales
The private sector is the barrier to improved social care services across Wales, a new report claims.
The major new study from the Association for Public Service Excellence (APSE) found that people receiving care, as well as care workers, are being let down by the current system of commissioning, outsourcing and the need to turn a profit, and years of underfunding.
Today, 'A National Care Service for Wales' report is being launched today in Cardiff Bay in the company of Welsh government ministers, council leaders and care workers.
APSE claim the requirement to create a profit or compete with for-profit providers means corners are cut, which means work poverty is commonplace, staff turnover is high and vacancies are huge.
It says the ÂŁ1.2 billion care market in Wales is dominated by private companies and no-one knows how much money is disappearing from the sector in profit or is wasted in the commissioning process.
UNISON argues, every pound of public money spent on social care should go towards the provision of that care and it has called on Welsh government to examine if the Welsh taxpayer is getting value for money.
Dominic MacAskill, UNISON regional secretary, said: “We can’t afford to lose this opportunity to get a National Care Service right at its inception and transform care forever. That means putting an end to a sizeable chunk of the taxpayer money that funds social care going to private investors in tax havens.
“The private sector always has one eye on delivering a dividend for investors, not what is best for our Welsh communities and that’s why care services should be directly and democratically provided by local authorities and be properly funded.”
Denise Thomas is a support worker in south Wales, and said: “We provide a vital service to our clients and their families and yet carers like me are receiving wages so low that they are leaving many of us to struggle under in-work poverty.
“It is essential that we have a National Care Service for Wales that puts the welfare of carers and their clients at its heart and not the profits of private companies and their shareholders.”
The ASPE report says that whilst there are many small private care providers, a handful of multinationals occupy a powerful position. Ultimately owned by private equity firms, they target around 12 per cent profit return for investors, with a further 20 per cent or more of earnings going to fund interest, tax, depreciation, amortisation, rent and management costs.
Earlier this year, Julie Morgan MS, Deputy Minister for Social Services, launched 'The Expert Group', which set to develop and implement a plan through external engagement by end of 2023.
You can read more about the report here.