UKHCA

United Kingdom Homecare Association
The professional association for homecare providers

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UKHCA Media Release

Chancellor to bring in National Living Wage from 2016 - 09/07/2015

Responding to the Chancellor's announcement of a new compulsory National Living Wage of £7.20 an hour for workers of 25 or over from April 2016, rising to over £9 an hour by 2020, UKHCA Policy Director Colin Angel commented:

"UKHCA supports measures which improve the terms and conditions of low-paid workforces. We note that Government's announcement on a National Living Wage for workers aged 25 years and above is offset to some degree by changes to employers' National Insurance contributions. However, due to the age profile of the social care workforce this announcement will have a significant impact on the cost of homecare.

"Whilst employers are responsible for meeting the increased cost, the vast majority of homecare services are purchased by local councils, who have an extremely poor record of increasing their fees in response. The impact of constrained public spending by councils has been subject to repeated criticism from the Low Pay Commission.

"We call on Government in each UK administration to ensure that the statutory sector is adequately funded to meet these additional costs, and to monitor effectively how such funding is passed on to employers. It is vital to ameliorate the negative impact on an increasingly under-funded sector, and to achieve better conditions for the homecare workforce in a sustainable way."

Ends.

Notes for Editors

1. United Kingdom Homecare Association (UKHCA) is the professional association for more than 2,200 domiciliary care providers in Great Britain and Northern Ireland.

2. UKHCA’s mission, as a member-led professional association, is to promote high quality, sustainable care services so that people can continue to live at home and in their local community. We do this by campaigning, and through leadership and support to social care providers.

3. UKHCA has a vetting procedure for its members, all of whom agree to abide by the Association’s Code of Practice, which can be found at www.ukhca.co.uk/codeofpractice.aspx.

4. There are over 9,800 registered homecare providers across the UK, the majority of which (86%) are in the independent and voluntary sectors. We estimate that these organisations employ over 578,000 homecare workers, who deliver over 6.25 million hours of care per week to around 505,000 service users, valued at £5.1 billion per annum.

5. Homecare encompasses provision of personal care, to people in their own homes. For many, homecare is the alternative of choice for people who would otherwise need to move into residential accommodation.

6. The majority of homecare is funded by the state (usually by local council social services departments, Clinical Commissioning Groups (CCGs), or Health and Social Care Trusts in Northern Ireland). However, homecare services are largely delivered by independent and voluntary sector providers working under contracts with the statutory sector.

7. UKHCA’s report “The Homecare Deficit” provides an overview of the underfunding of older people’s homecare by councils in Great Britain and the Health and Social Care Trusts in Northern Ireland, and summarises UKHCA’s calculation of the minimum price for homecare to provide compliance with the Minimum Wage (including careworkers’ travel time). See: http://www.ukhca.co.uk/downloads.aspx?ID=458.

8. UKHCA has produced a Basic Costing Model for the Provision of Social Care which is designed to assist any provider in the calculation of a fair price for social care services.

9. A summary of the Summer Budget 2015 key announcements is at: www.gov.uk/government/news/summer-budget-2015-key-announcements It is intended the Low Pay Commission will recommend future rises that achieve the Government’s objective of reaching 60% of median earnings by 2020.

10. For further information please contact:

Colin Angel, Policy and Campaigns Director
United Kingdom Homecare Association Ltd
Sutton Business Centre, Restmor Way, Wallington, SM6 7AH

Telephone: 020 8661 8188
Mobile: 07920 788993
E-mail: media@ukhca.co.uk
Website: www.ukhca.co.uk

Registered in England, No. 3083104.

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