Hft | Social care providers face huge wage bill hike

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 phone 0117 906 1697 or email media.enquiries@hft.org.uk

About Hft

Hft is a national charity that creatively supports more than 2,200 adults with learning disabilities across England and Wales to live the best life possible. Services range from residential care to supporting people to live independently in their own homes – from a few hours a week to 24 hours a day. Hft also helps people with learning disabilities to take part in daily activities, make friends and develop relationships and to find work.

Established in 1962, Hft is funded in two ways: through local authorities, who fund vital support services, but also through donors, supporters and volunteers who enable us to find new ways to help more people to thrive rather than just get by.

For more information about Hft please visit www.hft.org.uk