The county council is calling on government to shield adult care providers and colleagues in the voluntary sector from the impact of tax rises announced in the budget.
Following a letter from the Lincolnshire Care Association (LinCA) and Lincolnshire Voluntary Engagement Team (LVET) highlighting the consequences of the rise in the national living wage and employers’ National Insurance contributions on services (attached), the county council is calling on government to rethink its plans to avoid putting providers under additional financial pressure.
Cllr Martin Hill OBE, leader of Lincolnshire County Council, said: “It’s understandable that adult care providers and their colleagues in the voluntary sector feel let down by the government, and we share their serious concerns about the impact of the changes announced in the budget. These will create huge challenges for the sector, put added pressure on council budgets at an already difficult time, and likely have knock-on effects on NHS services.
“While there have been indications that public sector organisations, such as the NHS, will be reimbursed for the extra staffing costs, most care providers are privately run and won’t receive any direct government support. Many care providers already struggle to balance the books, and these changes will bring extra unwanted pressure.
“The council greatly values the work of social care providers and has a duty to take into account the actual cost of providing care when setting its rates. However, we do need to work within our budget. Although the government has announced some extra funding for social care, they should really step up and do more to protect providers.
“We are currently making a detailed assessment of the impact the changes will have on our adult care costs. We will need to discuss with providers how best to tackle the challenges this presents, including how to minimise any resulting disruption to the services more than 10,000 vulnerable residents rely on.
“To hit care providers, and other small businesses, with extra taxes is extremely short-sighted. At a time when the care sector is looking to government for a more stable and sustainable model for the future, it has instead added further pressure to an already struggling system. So, we are calling on the government to do the right thing and protect these vital services.”