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Social care could collapse as a result of a triple whammy in the ‘ruinous’ budget experts warn. 

Care Forum Wales (CFW) says the controversial measures announced by Chancellor Rachel Reeves pose a “greater threat than Covid” to the sector and fears care homes and domiciliary care companies will inevitably be forced to close. This dire situation is mirrored across the UK where care homes and home care companies face a real existential threat.

With a 1.2% rise in Employer National Insurance contributions and a cut to the Secondary Threshold to £5,000 alongside the five per cent increase in the Real Living Wage to £12.60, CFW has calculated the sector in Wales faces a £150 million funding hole to plug. 

CFW revealed that 40 care homes in Wales have already been forced to close since the onset of the Covid pandemic. Even before the Budget, specialist business property adviser Christie & Co calculated that Wales faced a 10,000 deficit in the number of care home beds Wales needs over the next decade.

This comes at a time when demand is spiralling upwards, with the 85 + population set to double over the next 20 years.

Age UK report shows rising demand for social care

Compounding the issue, a recent report from Age UK shows that 2 million older people in England are now living with some unmet need for social care, a figure that is steadily rising and has been for some time. 

Since Covid the report finds there has been a decline in social care capacity and service availability, with extremely worrying implications for older people and their families and unpaid carers. This is all the more concerning in light of a rising older population, the growth of which will accelerate still further over the next decade, increasing by a projected 4.3 million by 2044.

With this pressure and the ever-increasing waits for social services, many people are turning to private care for immediate help. Angel Carers hourly visiting care is a perfect choice for those who need help with key activities during the day or night. Our Domiciliary Care service starts from just 30 minutes per care visit and can be extended to as many hours as you require, day or night. 

Care sector has larger wage bills than other industries

Despite the increased demand for private care, these budget measures will see average size care homes facing extra costs of tens of thousands of pounds, with larger care providers facing even heftier bills amounting to hundreds of thousands.

The social care sector already has large wage costs compared to other industries because of the number of workers it needs. To put it into context, a typical residential home where people don’t need nursing has a wage bill as a proportion to turnover of about 60 per cent. That rises in nursing homes to 65 per and more.

For domiciliary care the percentage of wages to turnover is over 80 per cent.

Report reveals a third of people more likely to choose care at home – post Covid 

Care homes struggled after the pandemic with many closures nationally.  To add to the pressures, a post-Covid survey by Homecare Association showed that more than a third (35%) of people were now more likely to choose care in their own home rather than in a Care Home.

Lifestyle and choice were highlighted as the primary issues. With the top reasons being – the ability to live the way I want (64%), the ability to control my own life (54%), and the ability to maintain relationships with the family and friends (53%).

Having a qualified Live-in carer is for those who prefer to live independently in the comfort of their own home. It offers the flexibility of simple things – eating what you want, going to bed when you want, watching the TV you like, staying with your beloved pet…

Angel Carers offers bespoke one-to-one support assistance in your own home on your terms. We provide care that allows you to maintain your individuality and your independence.   Whilst financially on a par with Care Homes, the personalised care you receive with Live-In care is incomparable.

Care homes and domiciliary care are vital community assets

Care homes and home care providers are businesses, but they are also vital community assets which are fantastic value for money which enable people to remain in their own community.

CFW states;  “We came out of Covid with fewer care homes, and we will potentially lose even more as a result of this ruinous Budget unless the sector gets the supports it deserves and needs.”

Read the full article in The Carer:
Budget Is £150m Triple Whammy For Social Care In Wales And Poses Greater Threat Than Covid