National living wage threatens uk care sector, george osborne told

National living wage threatens uk care sector, george osborne told


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The introduction of a "national living wage" will leave the care sector at risk of "catastrophic collapse", the head of the body representing the industry has said. Five


of the biggest care home providers in the UK have written to the chancellor, George Osborne, to warn that the plan will cost the sector £1bn by 2020, the BBC reported. From April next year a


minimum rate of £7.20 an hour will apply for workers aged over 25, rising to £9 in five years' time. Four Seasons Health Care, Bupa, HC-One, Care UK and Barchester said they supported


a national living wage but claimed that as staffing accounts for 60% of care, there would need to be efforts to rescue the care system. Their letter follows one last month from the UK


Homecare Association, which said if the government did not act to address the funding gap, "continued supply of state-funded homecare will become unviable". Martin Green, the chief


executive of Care England, told the BBC: "Without adequate funding to pay for the national living wage, the care sector is at serious risk of catastrophic collapse." He said:


"We want to work with the government to find a fair solution that will ensure the care sector can provide a safe and comfortable environment for older people who live in care


homes."