I just want to add some numbers to this debate, at least for St Martins Care, which might be useful. Looking at the most common role in our business, the annual cost of employing one full-time #care assistant in 2024-25 is £30,061. The NI changes announced in the #budget will increase that by £827.55 per annum (+2.75%) and the minimum wage increase will add a further £2,129.52 (+7.08%). Yes, you read that right, overall a whopping £2,957.17, an increase of 9.84% ?? ??♂? . Our overheads are likely to go up a similar amount (not the currently reported rate of 1.7%) as most of the goods and services we buy are supplied by businesses that will also be facing the same increasing cost of wages and will be passing that onto us in their pricing. Well, look on the bright side, at least we now know how much we need the local authorities to increase fees next year - it's about 10.0%! There you go, Keir Starmer, Rt Hon Rachel Reeves, and Rt. Hon. Wes Streeting MP, I've saved you a job here - you need to increase local authority funding for #adultsocialcare by 10.0% for 2025-26. You're welcome, no debate or argument - #justdoit
This is a disaster for #adultsocialcare and #careproviders (and #GPs and #hospices). Let's just look at how businesses faced with the increase in Employer's NI from April 2025 can mitigate the cost and if they are applicable to #socialcare. ?? Increase prices - 80% of adult social care is paid for by Local Authorities who set the price they pay. Providers have little or no say in the setting of fees. ? ?? Lower Pay Increases - most care workers are paid minimum wage (because Local Authorities set fees based on minimum wage) so there is no scope for lower pay. ? ?? Reduce headcount - whatever the funding, care providers need to maintain safe staffing. They just can't cut headcount the same as other businesses. ? ?? Lower profits - the only realistic option for care providers but the problem is that margins have already been squeezed so much that the increase in NI is likely to wipe out most or all their profit, meaning at best, nothing left for investment and, at worst, insolvency. I feel for all businesses that are having to deal with this shockingly large increase in #employment #taxes but at least most have 4 different levers they can pull. Care providers have no choice but to accept lower profits and hope Local Authority funding and fees increase enough in April 2025 to cover both the increase in minimum wage and NI (personally not holding my breath on that one ?? ?? ). The increase in Employer's NI has the potential to wipe out many care providers and turn the rest into zombie businesses, reducing capacity when demand is increasing and the knock on effect to the #NHS would jeopardise its improvement. Is that what you intended/wanted Keir Starmer, Rt Hon Rachel Reeves and Rt. Hon. Wes Streeting MP with this budget? What do you have against care providers? Is it just because we're not #publicsector (and if so, time to grow up and treat us as part of the solution). Finally, my main concern is the welfare of the people that depend on us for their care. What is this going to mean for them? Are the last days/months/years of their lives going to be worse as a consequence of this budget (rhetorical question - the answer is yes, of course) - #shame on you The Labour Party. www.smcgroup.co.uk St Martins Care https://lnkd.in/eM9GhaAz
Passionate, results driven, senior health and social care executive selectively seeking next position in which I can make a wide impact for adults with complex needs
2 天前They might as well just say OK and get it done- no need for debate as you well say #justdoit