Vital care for those most in need under threat from funding shortfall

Help for people with learning difficulties, physical disabilities, mental health problems and other care needs will be under threat in Wokingham Borough and elsewhere unless the Government starts to fund the adult care sector properly.

Increases to Employer National Insurance Contributions and the National Living Wage that were announced in last month’s budget will add an estimated £2.8 billion per year to the cost of providing adult social care nationally – but have not come with adequate funding increases. 

This is on top of inflation increases in recent years and has left local councils and businesses providing care to those who need it most facing financial crises.

To call the Government’s attention to this issue, Wokingham Borough Council is coming together with the Berkshire Care Association (BCA) to ask for fairer funding for adult social care and has agreed to be a signatory to a petition by the Bay Care Group, along with more than 30,000 others.

Any Wokingham Borough residents wishing to sign it, can access it via the UK Government and Parliament petitions webpage. 

The council is supportive of improved pay for social care workers, but estimates the impact locally will be an increase of £3.5 million per year to the cost, which is not matched by increased Government funding. 

It is feared that this will lead to social care providers not being able to continue, which would directly impact to people who need these services. 

The dire situation has led to a joint call from the ruling Liberal Democrat group and the opposition Conservative group for a funding rethink from Central Government.

Hurting those most in need

Cllr David Hare, executive member for adult services, health and wellbeing, said: “We fully support better pay for the care sector, but it needs to be funded. Unless the Government changes its mind, this will hurt those most in need of our support. It is vital people understand what this actually means: a failure in adult social care means failure for people with learning difficulties, physical disabilities, mental health issues and older people. It is not acceptable to risk letting those people down.

“Social care has been the poor relation to the NHS for a long time, but these changes are a different level and would mean an already faltering system collapses – with terrible human cost. We are lobbying local MPs and the Government on this and pointing out the impact it will have on care providers, care workers and people in need.”

Unlike the NHS, the Government has not committed to providing compensation to social care employers for the National Insurance increase.

'Short-sighted' decision

Cllr Pauline Jorgensen, leader of the Conservative group, said: “We are extremely concerned about what the unfunded NI and minimum wage increases will mean to those who provide social care and those who rely on it. 

"This threat is causing real distress in the care community and we are urging the Government to act before it is too late. The changes are also short-sighted from a financial point of view, because there will be a knock on effect on NHS costs, as good social care helps people stay independent and out of hospital.”

The council call for change joins national and regional voices urging the Government to fully fund the wages and NI increases. The BCA, which represents more than 350 social care providers has written to Wes Streeting, the Secretary of State for Health and Social Care, to raise the risks and call for improved funding.

Peter Lomax, BCA chair, said: “As a care association we recognise that local authorities are facing huge financial pressures themselves as a result of Governmental constraints. Adult social care has been historically underfunded for decades. Unlike industries such as retail or leisure, where prices can be adjusted to offset increased costs, social care providers rely on state funded fees for financial sustainability.”