Ian Austin – 2016 Parliamentary Question to the Department of Health
The below Parliamentary question was asked by Ian Austin on 2016-10-18.
To ask the Secretary of State for Health, what discussions he has had with care providers on funding the additional costs of introducing the national living wage.
David Mowat
Social care continues to be a key priority for the Government. This is why, against the context of tough public sector finances; the Government has taken steps to protect social care services. The Government is giving local authorities access to up to £3.5 billion of new support for social care by 2019/20. This should mean local government has access to the funding to increase social care spending in real terms by the end of the Parliament. This will support councils to continue to focus on core services and to pay fees which reflect provider costs including the National Living Wage.
The Spending Review took into account a range of financial and economic factors, including projections and data on the National Living Wage from the Office of Budget Responsibility and Skills for Care.
Under the Care Act 2014, local authorities must have regard to fostering an effective workforce with the appropriate capabilities when shaping their local markets. The Act and its statutory guidance make clear that prices and fee rates agreed with providers must reflect these new duties, including the National Living Wage.
Social care workers play a vital role in our society and it is unacceptable that there are some circumstances where they are not being paid properly. Non-compliance with the National Living Wage is illegal and the Department is working with HM Revenue and Customs to help eliminate it from the home care sector.
The Department has regular meetings with the trade bodies that represent the care sector and is grateful for the information provided that adds to our understanding of financial challenges including the National Living Wage. In addition major providers and associations in the care industry have formed their own taskforce to discuss key issues for the sector. The Department attends as an observer.
