Care England, the largest and most diverse representative body
for independent providers of adult social care in England, has
today described the Spring Budget announced by the Chancellor as
another ‘missed opportunity’.
Professor Martin Green OBE, Chief Executive of Care England,
says:
“The Autumn Statement announced £7.5 billion for the social
care sector over the next two years, aimed at creating an
additional 200,000 new care packages, supporting the discharge of
people from hospital to ease NHS backlog, whilst also being split
across adult and child services. Care England’s recent
Fair Cost of Care
analysis shows that, even with this funding, the
deficit for older person’s residential and nursing home stands at
around £2bn per annum. While the £7.5bn represented a step in the
right direction, the Spring Budget was an opportunity to
reinforce this progress and move towards a sustainable funding
settlement for the sector. It was an opportunity that,
unfortunately, the Government did not take, with a notable lack
of any announcements targeted at the sector. Against the backdrop
of a workforce crisis and rising vacancies, the rising cost of
living and increasing energy costs, the stabilisation of the
adult social care sector should be the Government’s priority in
the coming months. The NHS cannot survive in the long term if the
social care sector is unsustainable. A political consensus must
be forged on how to fund and support our vital sector sustainably
over the long term.”
Care England made the following representations for the 2023
Spring Budget:
- Zero-rate VAT for Welfare Services to enable care providers
to recover input VAT.
- Provide enhanced support for energy costs and remove the 5%
VAT surcharge and Climate change Levy on energy bills.
- Make EBSS AF payments directly to social care providers, not
those in receipt of care who are not directly responsible for
paying energy bills.
- Establish a national tariff of £1,500 per week to be imposed
for a specified period and clear care needs specifications to aid
hospital discharges.
- Actualise a fully funded 10-year workforce vision, as set out
in the People at the Heart of Care white paper.
- Introduce a Government-developed pay framework to establish a
minimum care wage, above the level of the NLW and ties to NHS
band 3.
- Increase the number of VISA allocations given to care
providers, at a reduced cost to aid in lowering the number of
vacancies within the care sector.
- Confirm what will happen to the minimum salary set for care
workers entering the UK via the Shortage Occupation List route
(previously set above the NLW), once the NLW rises to £10.42 from
1 April 2023.
- Allow care works to work full-time hours without losing
access to benefits.
In his announcement of the Spring
Budget today, the Chancellor set out measures including scrapping
the lifetime allowance on tax-free pension contributions; the
expansion of 30 hours of free childcare a week for working
parents to cover children below the age of three; a £27bn tax cut
for business through a new ‘full expensing’ policy and capital
allowances reform; and, funding for up to 50,000 places on new
voluntary employment scheme for disabled people, called Universal
Support. Other notable announcements included the freezing of
fuel duty for another year and the extension of domestic energy
support for a further 3 months, limiting typical household energy
bills to £2,500 a year.
Martin Green continues…
“Social care is vital for the future of local people and
local economies. It supports some of society’s most vulnerable,
often living with lifelong conditions and is a source of
employment for millions of hardworking, dedicated people across
England. Social care must become a priority for the country. With
an ageing population and demand for services to increase, the
Government requires a sustainable roadmap for the social care
sector that will meet the country’s social needs and support the
NHS in reducing waiting lists. Care England will continue to work
pragmatically to present solutions which seek to resolve the
issues faced by all those within the sector and those who draw on
care and support. Investment in the sector is key and will only
be achieved with a clear long-term care strategy which is
properly funded, and we hope that the forthcoming Implementation
Plan, due to be published in Spring, delivers on this.”
Ends
