RWK Goodman: Budget Blues

The rising cost of living has been a topic of conversation for some time and there are not many that would argue a rise in the National Living Wage is not warranted – especially for those who care for society’s most vulnerable. However, the implications of that ‘generous’ decision by the Chancellor are not that straight forward.

Not only will providers need to find the money for the 6.7% increase in NLW, they have been hit with a rise in Employer National Insurance of 1.2%, with a lowered threshold of £5,000 – equating to an extra £615 per employee who works more than 8 hours a week. Many providers who currently pay over the National Minimum Wage will lose any competitive edge they currently have and what happens with pay differentials? Somehow the inevitable increase that will be needed for more senior members of staff never seems to be a consideration.

The £600 million pledged for social care has done little to ease the pain – described by many as a drop in the ocean against the £3.4 billion that the Local Government Association say is needed to meet the rising costs of social care. Indeed, it seems that £600 million will be completely swallowed up in addressing the additional costs set out above (if it even meets those cost).

Yet again it seems providers are expected to provide more with less.

Against a backdrop of the cancellation of adult social care reforms, local authorities aggressively resisting much needed fee increases, increased demand for services and the well documented recruitment challenges it is no wonder providers feel let down.  

It is hard to argue against the warnings of provider closures, further recruitments woes and additional strain resulting in negative outcomes for service users - only time will tell the true impact of the 2024 budget on social care in the UK.

If you want to make your views known, the Care Association Alliance has created template letters that can be used to contact the Chancellor and MP’s.