C&SW 2020/21 Cost Pressures Report

We hear alot about the underfunding and crises in the social sector; how true is it all? We have completed our annual Cost Pressures Report which takes into account the responses of members to our survey and presents a thematic summary of the pressures on cost is social care.

You can read the report here: annual cost pressures report is now available for download.

The C&SW analysis is themed under the following headings:

  • The impact of the forthcoming increase in the National Minimum/Living Wage

  • The cumulative impact of the statutory requirement to make employer contributions

  • The split between staffing and non staffing costs

  • Cost pressures associated with inflation and ‘additional’ non wage costs

  • C&SW view on what the 20/21 uplift should be to maintain parity

  • The Staffing ‘Shortfall’; including demographics, turnover, recruitment, career choices, use of foreign nationals

We learn that Somerset County Council are offering only a 2% uplift despite a consultation paper which cites:

  • NLW

  • Inflation and high non wage costs

  • Higher than average staffing costs in Somerset

  • Lower than average home care fee rates in Somerset

  • Other structural issues in Somerset that impact on the ability of providers to provide quality care.

Additionally the annual UKHCA report calculates that the minimum price for home care in 2020-2021 should be £20.69 (see below) and emphasise that this is a minimum, not a ‘fair’ price which should recognise “the value of homecare services to society and provide a fair reward for our essential workforce”. They point out that council rates that barely cover the wage bill continues “to destabilise an already fragile state funded market”

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