Funding Concerns for Real Living Wage May Threaten Care Provider Closures

An organization representing the care sector has asserted that some care providers might face closure because of the requirement to pay their staff the real living wage. Cymorth Cymru, an umbrella organization for a segment of care providers, indicated that a 3.3% funding increase, provided by ministers to local authorities to help cover the £12.60 per hour wage, was not reaching the care providers themselves. The leader of the Welsh Local Government Association (WLGA) affirmed that guaranteeing the payment of this wage was among its foremost objectives. The Welsh government, for its part, stated that the wage ought to be disbursed in line with national directives. In Cardiff, Annalise Jeannette resides in a shared household with four other individuals who have learning disabilities. She receives support from staff employed by Dimensions Cymru, a charitable organization funded by local councils and health boards, and stated that their assistance significantly improved her life. “I get support for going to the doctors and dentists, going away, shopping, without which I wouldn’t go,” she said. “I get nervous if I go to places I’m not familiar with.” The implementation of the real living wage for care workers constitutes a key component of Welsh Labour’s policy platform. However, a collective of care organizations communicated to ministers, in correspondence viewed by BBC Wales, that the funds intended for the real living wage are not reaching frontline staff. The letter conveyed “serious concerns… arising from protracted discussions, inconsistent approaches and insufficient fee uplifts to deliver the real living wage commitment”. In response, the Welsh government stated that it had “thus far had no concerns raised by any local authority around their ability to fund the real living wage for social care workers”. Katie Dalton, director of Cymorth Cymru, warned that agencies could cease operations if the necessary funding is not delivered. She explained that the funds were “within the local government settlement which increased by approximately 3% last year, and many social care providers we work with say they need uplifts of between 9% and 10% to cover the increase in the living wage”. She further noted that the money was “hidden” in the local government settlement and “not easily identifiable”. Organizations providing care services advocate for the ringfencing of these funds. “Our biggest priority is making sure the real living wage is paid,” WLGA leader Mr Morgan told Politics Wales. He confirmed that all local authorities had committed to the initiative, though he acknowledged it introduced “more financial pressures”. According to him, a solution for social care involves ensuring workers in the sector receive a fair wage, which would necessitate “more funding”. The Welsh government stated that it has allocated £113m via the local government settlement since 2022 to “ensure our social care workers receive at least the real living wage”. It added: “The new national framework for commissioning of care and support requires local authorities and health boards to support employers in improving the status, well-being and working conditions of health and social care workers. “It also requires care and support service commissioners to have regard to Welsh government guidance on implementing the Real Living Wage.”