Councils Not Paying Fair Price for Care
The UK Home Care Association has calculated that councils should be paying a minimum of £16.70 per hour to support older and disabled people in their own homes. However, due to the cuts on council spending implemented by the government, it has meant that councils on average are paying over £2 less for this support.
Earlier in October the Care Quality Commission said that the cuts were leading to more pressure on hospitals, resulting in deteriorating performance leaving the sector at ‘tipping point’.
80% of the 900,000 looked after by the home care market, are funded by local councils. The UKHCA stated that they reached the minimum price bracket of £16.70 by totaling the cost of paying carers the national living wage and a 50p an hour profit margin as well as contributing towards the running of their business.
‘It is thought that another £500m will need to be invested into the market to bring the fees up to a sustainable level’, according to Colin Angel of the UKHCA. Without this investment, it means that councils are not able to keep up paying working in accordance to the increase in the national living wage.
In response to this, a spokesperson from the Department of Health has said that the government have allowed local authorities to increase their council tax by 2% in order to pay for the rising costs of social care.
However, councils have stated that even with the 2% rise, this is still not enough to cover the costs due to the overall lack of funding.