There was a mixed reception for the Autumn budget from local care home providers on Friday. Whilst they welcomed the increase in funding for social care, they expressed the view that the increases in the employers’ national insurance contributions and the minimum wage would impact on their viability.
The manager of one local care home, who did not wish to be named, said: “We are privately owned companies and have to trade at a profit, and for years we have just about coped. We fear these increases might push us over the edge. It is hard to find people willing to undertake the important work we do, and already pay over the minimum wage but expect the salary bill will shoot up after this. And the National Insurance increase will really hit home.”
The residential building in Islington has beautiful grounds and is at the moment at its capacity of 12 people, mixed sexes. “We are not worried about closing at this time, but a lot depends on whether the local authority will agree to pay a higher price per person they send here, but as so many of our residents are paying their own fees either themselves or through their families, increasing their room fee would be unfair and stressful.”
One resident who happily gave their name, Barbara Birch, 96, said: “They are crying wolf, again. I have been here 6 years now, and it is lovely, but every time there is a budget it doesn’t matter what it says they always plead poverty. They know that they will get the extra money.”
Barbara says she always watches the news and reads the papers, and that the first election she remembers was 1945. “I was too young to vote but remember my mother and father voting Labour. My mum always said Churchill was a warmonger and every time he made a speech the Germans dropped more bombs on us. I suppose he did win the war, but we got shot of him. Now there isn’t much difference between them all, but I always insist I get my postal vote in as I cannot walk much anymore. Voting is important. The budget is always given too much attention. It doesn’t make that much difference really when you think about it.”
A Government spokesperson commented: “In order to fund the increases in support for those needing care, some changes to the tax structure were needed. The increase in the minimum wage will help tens of thousands of hard working people to have improvements in their lives. We will always support the vital care home system and those who require their services.”