A company with five care homes in South Wales has revealed it’s facing a £725,000 double whammy as a result of controversial Budget measures.
According to Dr Bikram Choudhary, Director of the SilverCrest Group which employs 420 people, the increase in the employers’ National Insurance contributions would cost them £300,000.
On top of the that the wage rises announced by the Chancellor would amount to a £425,000 bill for the company whose homes include Cwrt Enfys in Ystradgynlais, Tŷ Nant in Williamstown, Mill View in Ystrad, The Hollies in Pontypridd and Morgana Court in Bridgend.
Dr Choudhary is backing a new campaign by Care Forum Wales (CFW) calling for social care to receive an NHS-style exemption from the National Insurance increases or emergency financial support to stop care homes and domiciliary care companies going bust.
He warned increases in employers’ National Insurance contributions and a rise in the Real Living Wage could see care homes across Wales close.
And he said that would mean patients would needlessly be stuck in hospitals for months, while the social care sector itself would be at risk of collapse.
With a 1.2 per cent 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, bosses at CFW have calculated the sector in Wales faces a £150 million funding hole to plug.
CFW chair Mario Kreft MBE is leading the group’s new campaign, Save Social Care, Save the NHS.
He has outlined the organisation’s stark warning in a letter to Welsh MPs, Senedd members along with First Minister Eluned Morgan and Health Minister Jeremy Miles.
A similar letter has gone to Prime Minister Kier Starmer and Chancellor Rachel Reeves.
The campaign is being supported by the Five Nations Group which represents care organisations from across the UK and Eire.
They all agree that third sector providers, including charities and hospices, will also be put at risk by the “ruinous measures” contained in the Budget.
Dr Choudhary said he shared those concerns and warned that funding hole will have real consequences on patients who are fit enough to leave hospital, but can’t get a bed in the community.
He said: “I see the struggles from both sides, firstly as a provider of care and secondly as a GP, where we are trying to secure care for some of our patients but it’s just difficult to get social care support.
“Dementia patients or other patients with acute social care needs can suddenly find themselves in hospital for weeks or even months, through no fault of their own are often bounced around the social care system without receiving the appropriate care and treatment that they urgently need.
“This bed blocking adds extra pressure to hospital staff and the costs of this would be incredibly higher than if they were in a care home setting where they could be receiving specialist care.
“We desperately require more vital social care intervention to place patients in care homes where they have the correct infrastructure to provide patients with the proper care and enable a swift recovery.
“If the Government really wants to fix the NHS by cutting waiting lists and preventing bed blocking then they have to realise that social care is the key element of achieving this and concentrate on fixing this first.
“I have seen a few care homes close their doors across Wales and this will be an added pressure on the care homes who still have their doors open.
“Over the years there has been a decline in hospital beds and unfortunately for the most part, especially in Wales, there has been a decline in social care beds.
“Throughout this time the population has not declined but has aged and faced greater ill health yet there has been a reduction in beds. If the government doesn’t act now then the system is going to come under more pressure.
According to the CFW chair Mario Kreft MBE, the only way to avert the funding crisis was for the social care sector to be granted an NHS-style exemption from the increases in employers’ National Insurance contributions or failing that support to meet the other additional costs.
He said: “It represents a 37% increase in employer NIC for a member of staff earning £25,000 a year which equates to the Real Living wage
“If social care can’t be exempted, then the huge extra financial costs imposed as a result of the Budget must be paid for one way or another because this is a tax on publicly funded care.”
Dr Choudhary agreed and said: “Absolutely there needs to be some thought given to that.
“Care homes are very heavily staffed. There is no alternative at the moment. Myself along with other care providers fear there will be more closures because the extra costs will make them unsustainable.
“Without a shadow of doubt that is going to happen. Some of the smaller care homes are already really struggling to make ends meet, but it’s going to be a challenge for all care home providers.
“We at the SilverCrest Group have five care homes with 290 beds across South Wales, so we’re one of the top 10 largest care home providers in Wales but it’s going to be difficult for everyone.”
