New Prime Minister Andy Burnham has been urged to exempt independent care providers from the increase in employer National Insurance contributions – if he is genuinely serious about social care reform.
Care Forum Wales said it strongly welcomed the new PM’s commitment to adult social care, describing it as an important recognition that care is not simply a support service for the NHS but an essential public service in its own right, but warned urgent changes were needed immediately.
It follows new prime minister Burnham’s plans announced last month to place social care at the heart of his government’s agenda, as he called for cross-party consensus and revealed a review by Baroness Louise Casey would be brought forward to 2027, while warning the NHS would collapse without reform.
Care Forum Wales said it supported the ambition of creating a National Care Service that provides free care, in the same way as the NHS. However it said this must be delivered through a sustainable partnership between the public, third and independent sectors.
In a statement, Melanie Minty, Interim Chief Executive of Care Forum Wales, said: “For too long the sector has been viewed primarily as the scaffolding that keeps the NHS functioning, when in reality it is a vital public service that enables people to live with dignity, independence and choice throughout their lives.”
She added: “If the UK Government is serious about supporting social care, there are practical steps it could take immediately. One of the quickest would be exempting independent care providers from the increase in employer National Insurance contributions, just as statutory providers have been protected. We made this case alongside organisations from across the UK in our recent Five Nations letter because these additional costs ultimately fall either on individuals paying for their own care or on commissioners who are already under severe financial pressure.”
Care Forum Wales said it believed workforce reform should be developed in partnership with providers, adding the organisation continued to work constructively with Welsh Government through the Social Care Fair Work Forum to improve pay, career progression and working conditions for the social care workforce, recognising that sustainable improvements require sustainable funding.
It also acknowledged the unique financial challenges facing Wales, with the majority of care home residents relying on funding from local authorities and health boards rather than paying privately for their care. The organisation said it believed reforms at UK level must recognise these pressures and ensure Wales receives its fair share of funding to support an ageing population.
Minty continued: “We strongly support improving the terms and conditions of our remarkable workforce and will continue working with Welsh Government through the Social Care Fair Work Forum to achieve that ambition. A valued workforce deserves fair reward, but providers cannot deliver higher pay without commissioners funding the true cost of care.
“Wales has a long tradition of partnership working between government, providers and the wider sector. We hope that approach continues under the new Welsh Government. The debate should not become ideological. What matters is creating a sustainable care system that delivers the best outcomes for the people who rely on it, regardless of whether services are provided by the public, voluntary or independent sector.”
Care Forum Wales said it was also concerned reforms may unintentionally destabilise the existing care market, pointing out that evidence consistently shows local authority operated services typically cost significantly more to deliver than equivalent independent provision, while the construction of new publicly commissioned care homes also carries substantially higher capital costs.
“There needs to be a clearer distinction between responsible profit and profiteering,” Minty said. “Responsible providers reinvest in their services, their staff and their communities while ensuring their organisations remain sustainable for the future. At the same time, individuals and families should continue to have the freedom to choose the care home that best meets their needs, including homes that command higher fees because of the services they provide.
“The UK Government must be careful not to throw the baby out with the bathwater. Reforms that unintentionally undermine independent providers could reduce local choice, increase costs to the public purse, threaten employment in communities across Wales and ultimately put vulnerable people at risk during periods of transition.
“This is a once in a generation opportunity to create a social care system fit for the future. We urge both the UK and Welsh Governments to take a pragmatic, collaborative and evidence based approach that builds on the strengths already present across the sector. Care Forum Wales stands ready to play its part in helping deliver that vision.”