2022-03-31 15:37:11
The increase in the National Living Wage coming into effect tomorrow (1 April) will place huge additional financial pressure on social care providers as 80% say the fees they receive from local authorities towards running costs will not be enough to cover their increased wage bills.
Concerningly, one in 10 providers will need to cover 20% of their wage bill from their own reserves, rather than through fees paid by local authorities to deliver the right standard of care to those they support, according to new independent research conducted by learning disability charity, Hft. This equates to on average £640,000 in absolute terms per provider.
The new National Living Wage will have a massive impact on wage bills, as our Sector Pulse Check 2022 research shows that 44% of providers state they will need to raise their hourly wage rate to be in line with the new regulations.
says Kirsty Matthews, CEO of Hft.
Our frontline social care workers play a vital role in providing the care and support adults with learning disabilities need to live the best life possible. We took the decision at the start of this year to increase our hourly rate to the Real Living Wage of £9.90 (with an enhancement for certain geographical areas) compared to the new statutory National Living Wage of £9.50 to continue to attract and retain critical social care staff.
This will stretch our already finite resources and we’ll need to see local authorities correlate the fees they pay providers with the new National Minimum Wage so we can continue to deliver the right standard of care to the people we support.
The full research report, carried out by independent economics and business consultancy Cebr, and the only one of its kind to focus primarily on learning disability providers, will be released in April.
Notes to editors
For further information please email media.enquiries@hft.org.uk
About Hft
Proudly established in 1962 by a group of visionary parents, Hft is a charity supporting more than 2,500 learning disabled adults in England and Wales. Together, we are creating a future where learning disabled people and their families can live the best life possible.
Providing personalised support. Creating solutions for living independently. Coming together to campaign for positive change. Fundraising for new opportunities and a bigger impact.
In 2033, we’ll live in a world where learning disabled people have greater choice. About where they live. The support they need and want. And how to spend their time and money.
Learning disability versus difficulty
A learning disability is different from a learning difficulty but the terms are often confused and used inter-changeably. A learning difficulty does not affect general intellect, whereas a learning disability is a life-long condition characterised by a reduced intellectual ability and struggle with everyday activities.
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For more information about Hft please visit www.hft.org.uk
