Source · Select Committees · Health and Social Care Committee
Recommendation 4
4
Paragraph: 36
We believe the starting point must be an increase in annual funding of £3.9 bn...
Conclusion
We believe the starting point must be an increase in annual funding of £3.9 bn by 2023–24 to meet demographic changes and planned increases in the National Living Wage. However such an increase alone will not address shortfalls in the quality of care currently provided, reverse the decline in access or stop the market retreating to providing only for self-payers. Further funding to address these issues is therefore also required as a matter of urgency.
Paragraph Reference:
36
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The level of funding outlined in the Preface will support local authorities to maintain care services in 2021-22. We have also provided additional funding to help councils meet COVID-19 pressures, and we will continue to monitor the situation on the ground. 5.2 In November 2020, it was announced that from April 2021 the National Living Wage would increase to £8.91 per hour for those aged 23 and over. Whilst this represents a welcome 2.2% increase for the lowest paid workers, economic conditions mean that this increase is somewhat lower than originally forecast by the Low Pay Commission. The costs of this increase, including associated National Insurance and pension costs, have been fully taken into account in funding decisions. 5.3 For most people, their experience of adult social care is very positive, with 84.7% of providers currently rated as good or outstanding by the Care Quality Commission. However, we recognise that standards vary by region and by setting. We are committed to making the social care system more sustainable and addressing issues to improve the quality of care and reduce variation in practice.