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The Lancashire Care Providers Forum, a coalition of domiciliary care companies across Lancashire, is sounding the alarm on the impending minimum wage increase and its impact on the industry. With the government set to implement a 6.7% rise from the current £11.44 to £12.21 per hour in April, along with a 1.5% unfunded increase in the rate of National Insurance (NI) paid and a lowering of the threshold beyond which employers NI becomes payable, care providers are bracing for a significant financial strain.

"The Homecare sector is already operating on razor-thin margins, and these changes will only exacerbate the challenges we face," said Caroline Cosh, of Clifton Homecare Ltd. and chairperson for the Lancashire Care Providers Forum. "Our member companies are deeply concerned about their ability to maintain the high-quality care our clients have come to expect, let alone expand services to meet the growing demand for ever increasing complex packages of care.

Although the NHS employer NI increase is being funded social care is not, despite providing NHS funded packages of care to service users. We need the government to recognise that the unfunded NI increases are grossly unfair compared with the same care costs in the NHS sector which are funded."

The impending wage hike and NI increases come on top of already significant cost pressures at a time when the care industry is already balancing rising business-related costs such as energy, fuel and insurance.

Care Providers Planning a National Day of Action

This financial strain is further compounded by staff shortages, placing the sector at breaking point.

"Our caregivers are the backbone of the care industry, and we are committed to ensuring they are fairly compensated for their vital work," continued Clive Cooper, Director of Kare Plus Preston, a fellow member of the forum. "However, without additional government support, the sheer scale of these changes will force us to make difficult decisions that will compromise quality of care provided”.

To raise awareness of the industry's plight, the #ProvidersUnite action group is planning a National Day of Action in London on 25th February 2025, where care providers can voice their concerns directly to Members of Parliament.

The Lancashire Care Providers Forum urges its members and the broader care community to participate in this important event. "We are calling on the government to recognise the essential role that homecare providers play in supporting the most vulnerable members of our society," concluded Caroline. "With the right policies and financial assistance, we can ensure that high-quality, affordable care remains accessible to all who need it."

About the Lancashire Care Providers Forum: The Lancashire Care Providers Forum is a coalition of homecare companies serving the Lancashire region. The forum works closely with the local authority to advocate for the interests of its members and promote the delivery of exceptional care services to the local community.

Caroline Cosh (Clifton Homecare Limited) - 01253 722945 ([email protected])

Clive Cooper (Kare Plus Preston & Blackpool) – 01772 367656 ([email protected])

Lancashire Care Providers Forum Calls for Government Support Amidst Punishing Tax Hikes 20/02/2025