How Labour’s tax-raid Budget threatens to plunge social care into terminal decline

OPINION

Care boss Mike Padgham is one of thousands protesting at Labour’s Budget tax raid (Image: Andy Commins / Daily Mirror)

The social care sector has been battered over the last three decades, but in my 35 years’ service, I have never known it so tough. 

Years of broken promises from successive governments, decades of underfunding, higher client acuity and continual staff shortages have taken us to the brink of collapse.

The announcement in October’s Budget will, for many providers including those in the charity sector, be the final blow. Many of these are locally run and, or, family businesses.

These are the unintended consequences of a Budget which fails to recognise the unique role the independent social care sector plays in the support of vulnerable people, the NHS, and the wider economy to which it contributes over £68bn. 

The proposed increase in Employer’s National Insurance contributions, along with increases in the National Living wages, are pushing many providers to fear for the future.

It beggars belief and will have the opposite effect to what the Government seeks to meet its pledges. 

A survey of 1,180 care providers, carried out by the Care Provider Alliance, found that 22% of those who responded were planning to close their business; 73% will have to refuse new referrals from local authorities or the NHS; 57% planned to hand back some contracts and 64% feared having to make staff redundant.

Social care is seen as a Cinderella service compared to the sacred NHS

Decades of underfunding and a staffing crisis has left the sector on the brink (Image: Getty Images)

We support higher pay for staff, but for those delivering care on behalf of the public sector we are worried that local authorities will not be able to fund the increases organisations will need to charge and the extra funding the Government has promised is woefully inadequate.

What this means is that social care providers will leave the sector, care will be rationed even more and the number of people going without will rocket.

Social care providers are willing to help politicians find urgent solutions to the crisis, as we know they cannot do it alone.

I think the country is sick of hearing phrases like switching from hospital to community or prevention rather than care – we need to see some concrete action. Warm words don’t give people the care they need.

Saying the Budget was for working people is nonsense. It will hit those in work hard as  employer NI increases will result in fewer jobs and less take home pay.

Mike Padgham is Executive Chairman of Saint Cecilia’s Care Group and Chair of The Independent Care Group, which speaks for care providers.

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