A leading care association in the west is warning some residential homes may go under due to rising costs such as National Insurance (NI) and the national living wage. David Smallacombe, chief executive of not-for-profit organisation Care and Support West, says many care home operators will be forced to raise prices for vulnerable residents. He is calling on the government to exempt social care providers from the NI hike, as it already has for the public sector and NHS. A spokesperson for the Department of Health and Social Care (DHSC) said it was working towards building a National Care Service "that is fair and affordable for all". Care and Support West, which is funded by care home providers and also by four councils in the region, has calculated the tax rises will cost an extra £2,500 per staff member in care organisations. Care home residents may entirely self-fund their place, or be partially or fully-funded by their local authority depending on the findings of a means test. Mr Smallacombe said: "Local authorities would, if they could try to meet that, find themselves in a position where they have not got the right amount of money coming in from central government to fit that. "It's likely that some business will go out of business, which is a real worry." He added: "It will make a big difference into how these organisation manage themselves - some will find either owners or managers doing care shifts at no charge. Sometimes they will have had to eat into the reserves." A resident of a care home in Patchway told the BBC of his shock at receiving a letter from the provider telling him he would face a 30% jump in fees due to rising costs, primarily NI. The man, who did not wish to be named, was told his contribution to fees would rise from £460 to more than £600 per week. He said: "[Berkley Care Group] suggested the contribution from the council was to go up by 2% because they couldn't get any higher as the council is broke. "But they put the cost up to the resident by 30% - I just blew a fuse. They can't do that, it's just profiteering." After telling Berkley he would take the matter to the BBC and his MP, the resident was told his contributions would only rise to £506 per week. Berkeley's chief executive Laura Perry said a "miscalculation" had occurred during the review process for the resident and had been immediately corrected. She said the group had offered a full personal apology to the man. But she added: "Like all care providers up and down the country, we've been hit hard by the increase in employer National Insurance contributions. "We've tried to shield our residents from these cost increases as much as possible and have ensured that our fee increase remained lower than many of our competitors. "Nevertheless, careful fee adjustments for 646 of our residents have had to be made." A DHSC spokesperson said the government had allocated an additional £3.7bn to local authorities to help meet the cost of social care, and a further £502m to support them with NI rises. "This government inherited an extremely damaged economy, NHS and social care sector, but we are turning this around through our Plan for Change," they said. The spokesperson added: "Baroness Louise Casey will be starting her independent commission into adult social care this month to build cross-party consensus for a National Care Service and a system fit for the future that is fair and affordable for all." Follow BBC Bristol onFacebook,XandInstagram. Send your story ideas to us on email or viaWhatsApp on 0800 313 4630.
Care homes 'risk bankruptcy' due to NI rises
TruthLens AI Suggested Headline:
"Care Homes Face Financial Strain Amid Rising National Insurance Costs"
Bbc News
7.6
TruthLens AI Summary
A prominent care association has issued a grave warning regarding the financial viability of care homes in the region, citing rising costs linked to National Insurance (NI) and the national living wage as significant threats. David Smallacombe, the chief executive of Care and Support West, emphasized that many care home operators may need to increase fees for their vulnerable residents in response to these financial pressures. He urged the government to exempt social care providers from the recent NI hike, a concession already extended to the public sector and NHS, arguing that such relief is crucial to maintain the stability of care services. Care and Support West, which is financially supported by care home providers and local councils, estimates that the tax increases could result in an additional £2,500 cost per staff member, further straining the budgets of care organizations. Smallacombe expressed concerns that local authorities may not be able to bridge the funding gap created by these increases, potentially leading to the closure of some care homes, which would disproportionately affect vulnerable populations who rely on these services.
In a specific case reflecting the broader issue, a care home resident in Patchway reported a shocking 30% increase in his fees, rising from £460 to over £600 per week, primarily due to the NI hikes. This situation sparked outrage as the resident accused the care provider, Berkley Care Group, of profiteering, particularly noting that the council could only manage a 2% increase due to its financial constraints. While Berkley’s chief executive acknowledged a miscalculation in the fee review process and offered an apology, she also highlighted the financial difficulties faced by care providers across the country due to increased employer NI contributions. The government's response included an allocation of £3.7 billion to local authorities for social care costs and an additional £502 million to assist with rising NI expenses. Additionally, an independent commission led by Baroness Louise Casey is set to explore the future of adult social care, aiming to establish a fair and sustainable National Care Service.
TruthLens AI Analysis
The article sheds light on the precarious situation facing care homes due to rising costs associated with National Insurance (NI) and the national living wage. The concerns raised by the chief executive of Care and Support West highlight the potential for bankruptcy among residential homes, which could have severe implications for vulnerable residents.
Financial Strain on Care Homes
The rising costs of NI and wages are projected to put an additional £2,500 burden per staff member on care organizations. This financial strain forces care home operators to consider raising fees, thereby placing an even greater burden on residents, many of whom are already facing financial challenges. The call for government intervention to exempt social care providers from the NI increase indicates a pressing need for support in the industry.
Community Response and Sentiments
The reactions from residents, such as the individual who reported a shocking 30% fee increase, reflect the deep-seated anxiety within the community regarding affordability and access to care services. This sentiment may foster a perception of neglect by local authorities and the government, emphasizing the need for reform in how social care is funded.
Government's Stance and Future Implications
While the Department of Health and Social Care claims to be working towards a fair and affordable National Care Service, skepticism exists among stakeholders about the effectiveness and timeliness of these efforts. The warning from Care and Support West about potential bankruptcies raises concerns about the future viability of care homes, which could lead to increased pressure on local authorities and a greater demand for social care reform.
Potential Manipulation and Underlying Issues
There may be an underlying motive to draw attention to the financial struggles of care homes, possibly to prompt immediate governmental action or public support. The language used in the article emphasizes the urgency of the situation, potentially influencing public opinion to advocate for changes in policy.
The reliability of the news piece appears to be high, given that it cites credible organizations and direct quotes from affected individuals. However, the framing of the issue could lead readers to focus primarily on the negative aspects without considering broader systemic factors that contribute to the current situation.
The article aligns with a narrative of advocating for vulnerable populations, appealing to communities that prioritize social welfare and support for the elderly. It seeks to engage those who are concerned about the sustainability of care services in their regions.
In terms of economic implications, the news may affect stocks related to the care home sector, particularly those heavily dependent on government funding or those facing operational challenges due to rising costs. It could also influence discussions around public funding for social services.
In the broader context of global power dynamics, this news piece reflects ongoing issues of social equity and access to essential services, which remain relevant in today's socio-political climate. It connects to wider conversations about healthcare funding and the responsibilities of governments to support vulnerable populations.
There is no clear indication that artificial intelligence was used in the writing of this article, as it follows a conventional journalistic style focused on reporting facts and opinions. However, if AI were involved, it might have influenced the tone to emphasize urgency and concern for vulnerable communities.
The potential for manipulation exists in the framing and language choices, which could sway public opinion towards demanding quicker reforms and more significant government support for care homes. The article effectively highlights an urgent issue while subtly appealing for action from both the government and the public.