Vic Rayner, Chair of the Care Provider Alliance shares details on how the Care Provider Alliance survey tells a grim tale of Budget impact on adult social care providers.
In last month’s column, I took readers through the urgent work the Care Provider Alliance (CPA) undertook to help the Care Quality Commission understand how it can regain the trust of the care sector. It’s from the perspective of my role as Chair of the CPA that I once again put pen to paper to tell you about another crucial piece of work completed at speed recently by the alliance.
Colleagues from the 10 membership organisations making up the CPA have all heard of the increasingly worrying impact the Chancellor’s Budget announcement, specifically the planned rise in Employer National Insurance Contributions and increase in National Minimum Wage, will have on providers. Much lobbying work has ensued, calling for an exemption from the tax increases or extra money for social care but more evidence was required in order to present a strong case to government.
To that end a survey was quickly developed to gather data on the impact from a wide range of providers, their staff and the people they serve, to which 1,180 providers responded. The results were devastating and stark. Responses painted an alarming picture of a sector already cut to the bone being forced to think the unthinkable: closure of services, job losses, disruption or even cancellation of vital care that hundreds of thousands of people depend on to live their lives.
One contributor’s response included this comment: “We have made it through a global pandemic and cost of living crisis only to be shut down by the very government that we hoped would save us. This is not just about business viability – it’s about the lives of hundreds of thousands of vulnerable people who rely on these essential services.”
Key findings show that without immediate government intervention:
• 73% will have to refuse new care packages from local authorities or NHS
• 57% will hand back existing contracts to local authorities or NHS
• 64% will have to make staff redundant
• 92% of providers who also serve people who pay for their own care will be forced to increase rates for self-funders
• 22% are planning to close their businesses entirely
Social care providers are not the only groups sharing their deep concerns. On opening the National Children and Adult Services Conference (NCASC), ADASS President Melanie Williams spoke of the “catastrophic impacts” of the Budget on social care providers.1 Interestingly, from a cross party perspective Local Government Association has also issued concerns as they called for the increases to Employer National Insurance Contributions to be fully funded within the Local Government Finance Settlement. 2
The government must be under no illusion that the sector can absorb or accommodate these increased costs. Without adequate support, we now know for certain that services will close, care providers will stop delivering public services, and care workers will lose their jobs. Critically, a huge number of people who rely on care and support will go without or see their lives deteriorate. The £600m announced for social care won’t touch the sides of a £2.8bn cost burden identified by the Nuffield Trust. We know the potential of social care to transform people’s lives – and create jobs. This decision will take us backwards.
The CPA now calls for urgent action from the government:
1. Immediately exempt all care providers from the changes in employers’ National Insurance contributions
2. Ensure the National Living Wage increases for all care staff are fully funded
3. Create a sustainable long-term funding settlement for social care
1 https://www.adass.org.uk/2186-2/#h2-5
2 https://www.local.gov.uk/about/news/local-government-finance-policy-statement-lga-response
