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Pay boost for many thousands of care workers as government raises national living wage by 6.7%

Community Care

Many thousands of care workers will get a 6.7% pay rise next April after the government announced the 2025 increase in the national living wage (NLW). Councils’ ability to cover the 2025 rise will depend on the local government funding settlement they receive for 2025-26 from chancellor Rachel Reeves in tomorrow’s Budget.

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MPs overturn exemption for care providers from national insurance contributions rise

Community Care

MPs have overturned an exemption for adult social care providers from the forthcoming increase in employer national insurance contributions (NICs), in what leaders have described as a “devastating blow” to the sector. The government is forcing home care providers to choose between breaching regulations or insolvency.”

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£1bn shortfall in home care fees required to cover minimum wage, finds provider body’s research

Community Care

There is a £1bn shortfall in home care fees paid and the amount required by providers in England to pay staff the statutory minimum wage, meet other costs and make a “small” profit. On average, councils and health and social care trusts in Northern Ireland paid providers £23.26 on the year before. over the past year.

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Most home care providers have seen fall in number of hours commissioned by councils – survey

Community Care

Most home care providers have seen a fall in the number of hours of care councils have commissioned from them, research has found. Half of agencies (48%) reported a fall of 25% in the number of hours of care available to them to deliver, with a further 32% reporting decreases of less than this, found the Homecare Association.

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Councils already planning £1.4bn in adult care savings next year before added pressures from Budget

Community Care

Councils were already planning to make £1.4bn in adult social care savings next year before learning of the added pressures on the sector brought about by the government’s Budget. Budget impact on social care Reeves said that councils’ available resource would increase by 3.2%

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Care providers to cut care and jobs on back of Budget, finds survey

Community Care

This dwarfs the £600m in additional grant authorities have been promised for social care in 2025-26 , which is expected to be available for both children’s and adults’ services. Among the 479 home care respondents, 42.9% planned to shorten care visits. 77% would have to draw on reserves. ”

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£600m for social care ‘risks being swallowed by wage and employer tax rises’, warn sector leaders

Community Care

Chancellor Rachel Reeves announced the measures today, alongside news that councils would receive at least an extra £600m in grant funding for social care in 2025-26. This was part of a wider grant package worth £1.3bn which, along with other revenue increases, would give local government a real-terms rise in resource of about 3.2%