National Care Association has welcomed the Chancellor's emphasis in the budget on providing businesses with the ‘confidence to grow’. However, as providers we have a number of concerns about the ability of "businesses to grow" when faced with a 7% increase in wage bills at a time when the commissioners are reducing the funding per resident into services. Clearly the ability to grow has to be based on a vibrant market and the announcements yesterday left some deep concerns for providers to consider.
National Care Associations Chairman, Nadra Ahmed OBE said: "These are difficult times for providers as they take the brunt of the austerity cuts faced by local councils. Over and above that we have a recruitment issue which continues to deepen, which may become more difficult as the impact of reductions in tax credits are felt by the workforce. The important thing to realise is that providers of health and social care value their staff and would be delighted to meet their financial obligations, but regrettably they are hampered by the downward pressures on funding which year on year has led to a gap of over 6% between what is received and cost. Until the government is able or willing to address this issue we will see providers continue to struggle."