The announcement by the Business Secretary Vince Cable that the National Minimum Wage for adults will increase by 15p per hour from October to £6.08 an hour, an increase of 2.5% from October, will be met with dismay by care providers.
Nadra Ahmed OBE, Chairman of National Care Association has just said: 'Members of National Care Association support and care for some of the frailest, oldest and most vulnerable people in care homes, nursing homes and at home. They would like to be able to pay their staff more but …. a majority of those social care providers will currently be trying to come to terms with cuts to the fees paid to them by Local Government for care of between 1 and 10%
'Staffing accounts for at least 50% of expenditure in any care home and margins are increasingly tight. Homes are currently facing increases in statutory charges from both the Care Quality Commission (the regulator) and the Criminal Records Bureau as well as the increase in VAT in January.
'In a world where the demographics suggest that the need for care both in the community and in care homes will continue to rise it is astounding that the Government is allowing both the cut in fees to pay for front line services and now yet another statutory fee that must be paid.
'I am sure that we will see job losses and business failures because of this reckless attitude towards small and medium sized businesses.'
Source National Care Assoc