Care Home Executive Labels Autumn Budget “One of the Worst”

Raj Sehgal, chief executive of Armscare, which manages five care homes in Norfolk, has asserted that the recent autumn Budget ranks among “one of the worst” he has encountered. Mr. Sehgal indicated that the measures unveiled by Chancellor Rachel Reeves might lead to an increase in weekly fees for residents, potentially by as much as £80. He characterized social care as akin to “the poor cousin that has been ignored,” highlighting issues of underpaid workers and insufficient funding within the sector. In response, a Government spokesperson stated that “tough decisions” were made to provide a £22bn boost to the NHS and social care. Additionally, local authorities received an additional £600m in funding specifically for adult and children’s social care. The care sector faces the impact of a National Insurance increase and will be required to cover rises in the National Minimum Wage and National Living Wage. Providers have cautioned that these measures could potentially lead to the closure of some care homes. Mr. Sehgal described the consequences of the Budget announcement as “absolutely horrendous,” projecting an annual cost increase of approximately £350,000 for his company. He remarked, “It’s a circular movement of taxpayers’ money.” He elaborated, “We need it funded, which comes from Norfolk County Council. They need it funded, which is going to come from central government. So they tax us.” He expressed doubts regarding the capacity of local authorities to finance these additional expenses, indicating that resident fees would necessarily rise. His company presently employs 140 individuals but requires additional staff. He commented, “Care workers are the lowest paid in society at the moment for the work that they do and the responsibility they have… that is certainly not enough.” He holds the view that social care and health services must operate in conjunction, asserting that without adequate funding for social care, the NHS cannot be rectified. He stated, “It’s not just putting people into the sector… What’s been portrayed by people at the Government is that care is a job that anyone can do and that’s far from the truth.” A Government spokesperson responded by saying: “The employer National Insurance rise doesn’t kick in until April, and we will set out further details on allocation of funding for next year in due course.”