{"id":4869,"date":"2020-02-04T12:35:37","date_gmt":"2020-02-04T12:35:37","guid":{"rendered":"https:\/\/gipldemo.in\/wcfm\/?p=4869"},"modified":"2020-02-04T12:35:40","modified_gmt":"2020-02-04T12:35:40","slug":"51p-on-nlw-increases-home-care-rates-by-94p","status":"publish","type":"post","link":"https:\/\/gipldemo.in\/wcfm\/home-care-business\/51p-on-nlw-increases-home-care-rates-by-94p\/","title":{"rendered":"51p on NLW increases Home Care Rates by 94p"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Information for commissioning organisations setting Home Care Rates<\/h3>\n\n\n\n<p>When setting Home Care rates for 2020-2021, a number of commissioners (if they offer an increase at all) will attempt to offer either a rate equivalent to the increase in the National Living Wage (NLW), or an increase in line with the Consumer Price Index (CPI).&nbsp; <\/p>\n\n\n\n<p>Neither of these options comes close to covering the increased costs providers will experience from <strong>April 2020<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>An award equal to the 51p increase in the National Living Wage (NLW) fails to recognise the additional wage-related on-costs providers incur, including careworkers\u2019 travel time, employers\u2019 contributions to National Insurance and pensions, holiday pay, training time and sickness.&nbsp; <\/li><li>It also does not cover inflationary pressures on non-wage costs.&nbsp; <\/li><li>Using industry accepted calculations, a <strong>51p increase in NLW<\/strong> adds at least <strong>79p per hour to employers\u2019 wage bill<\/strong> in 2020, and a further <strong>15p per hour to maintain the pay differentials<\/strong> for managers and supervisors.<\/li><li>An award based solely on an inflationary index, such as CPI, does not reflect wage inflation experienced by employers.&nbsp; For example, CPI is a measure of how the prices of&nbsp;<em>goods and services bought by households<\/em>&nbsp;rise or fall.&nbsp; CPI was 1.5% in November and 1.3% in December 2019, while the <strong>NLW will increase by 6.2%<\/strong> in April 2020.<\/li><\/ul>\n\n\n\n<p>Many councils and NHS commissioners are already paying well-below the true costs of home care, so rate increases required this year will <em>need to be higher to avoid causing further damage<\/em> to the state-funded home care sector.<\/p>\n\n\n\n<p>The following chart summaries the additional cost pressures arising from a 51p increase in the National Living Wage (NLW) from April 2020.<\/p>\n\n\n\n<p>This indicates that commissioners should increase the Home Care Rate for 2020 by 94p.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"689\" height=\"331\" data-src=\"https:\/\/gipldemo.in\/wcfm\/wp-content\/uploads\/2020\/02\/Annotation-2020-02-04-120807.png\" alt=\"Home Care Minimum Increase\" class=\"wp-image-4876 lazyload\" data-srcset=\"https:\/\/gipldemo.in\/wcfm\/wp-content\/uploads\/2020\/02\/Annotation-2020-02-04-120807.png 689w, https:\/\/gipldemo.in\/wcfm\/wp-content\/uploads\/2020\/02\/Annotation-2020-02-04-120807-300x144.png 300w, https:\/\/gipldemo.in\/wcfm\/wp-content\/uploads\/2020\/02\/Annotation-2020-02-04-120807-570x274.png 570w, https:\/\/gipldemo.in\/wcfm\/wp-content\/uploads\/2020\/02\/Annotation-2020-02-04-120807-150x72.png 150w\" data-sizes=\"(max-width: 689px) 100vw, 689px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 689px; --smush-placeholder-aspect-ratio: 689\/331;\" \/><figcaption>51 pence increase in the National Living Wage means costs must increase 94 pence<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Information for commissioning organisations setting Home Care Rates When setting Home Care rates for 2020-2021, a number of commissioners (if they offer an increase at all) will attempt to offer either a rate equivalent to the increase in the National Living Wage (NLW), or an increase in line with the Consumer Price Index (CPI).&nbsp; Neither [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":4876,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67,54],"tags":[],"class_list":{"0":"post-4869","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-home-care-business","8":"category-hrlaw","9":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/gipldemo.in\/wcfm\/wp-json\/wp\/v2\/posts\/4869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gipldemo.in\/wcfm\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gipldemo.in\/wcfm\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gipldemo.in\/wcfm\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/gipldemo.in\/wcfm\/wp-json\/wp\/v2\/comments?post=4869"}],"version-history":[{"count":0,"href":"https:\/\/gipldemo.in\/wcfm\/wp-json\/wp\/v2\/posts\/4869\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gipldemo.in\/wcfm\/wp-json\/wp\/v2\/media\/4876"}],"wp:attachment":[{"href":"https:\/\/gipldemo.in\/wcfm\/wp-json\/wp\/v2\/media?parent=4869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gipldemo.in\/wcfm\/wp-json\/wp\/v2\/categories?post=4869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gipldemo.in\/wcfm\/wp-json\/wp\/v2\/tags?post=4869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}