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23rd November 2016

Chancellor raises the National Living Wage but fails to help social care

Chancellor of the Exchequer Philip Hammond raised the National Living Wage from £7.20 to £7.50 from April 2017 as part of his Autumn Statement.

The Chancellor's statement also included extra funding for UK infrastructure, but Mr Hammond faced criticism for failing to set aside money to help deal with social care, which faces a crisis across the border. The Welsh Government sets social care priorities differently to England.

United Kingdom Homecare Association’s chief executive Bridget Warr CBE said: “The absence of reference to funding social care services in the Chancellor’s Autumn Statement is exasperating for everyone who supports older and disabled people.

“The amassed evidence from providers, commissioners, sector analysts and colleagues in the health service has presented a consistent picture of a sector under extreme pressure which, should it fail, will let down citizens who rely on state-funded support."

The move comes as a new report has revealed that the National Living Wage has increased the financial pressure on care home providers who are already being hit by reduced funding from local authorities.

The report, which was commissioned by accountancy firm Moore Stephens, states that smaller care homes are under the greatest pressure as part of the National Living Wage. Read more on this story on the BBC website.

Care Forum Wales will be pushing local authorities and health boards across Wales to take this over 4% increase into account when setting their fees for 2017/18. Please give us feedback on what's happening in your area and how it will affect you.

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