BBC
Barry and Betty's service is not under threat, but Mencap fears it will have to close others
A leading charity which supports people with learning disabilities says it could be forced to stop offering at least 60 of its services due to rising national insurance costs.
Mencap is among a growing number of care organizations warning they will have to cut vital services due to the impact of the budget.
Businesses – including charities – currently pay a National Insurance rate of 13.8% on employee earnings above £9,100 per year. But this figure will rise to 15% in April 2025, once salaries reach £5,000.
Mencap says the increase will cost it £5.3 million each year.
The government also announced an increase in the national minimum wage during the budget – with hourly rates for over-21s expected to rise to £12.21 an hour. This will cost the charity an additional £6.7 million, it says.
As well as having to increase other workers' wages due to the minimum wage increase, the charity estimates the changes will cost up to £18 million a year.
Local authorities, which fund the bulk of social care for the elderly and disabled, say the rising costs for the sector are “insurmountable”.
The Government says it is tackling the challenges facing adult social services and providing additional funding as part of a £3.5bn extra funding for councils in England l next year.
24 hour support
Twenty-six people with various learning disabilities live in Churchfields, Essex. It is one of 600 services run by Mencap across England, Wales and Northern Ireland.
Although Churchfields is not under threat, contracts to provide other similar services could end, Mencap said.
Among the residents of Churchfields are Barry and Betty. Both use wheelchairs and require 24-hour assistance. Betty can speak a few words, but Barry is non-verbal. He often relies on sign language and answers yes/no questions written for him on a whiteboard to communicate.
But in both cases, their faces and their reactions can tell their story more eloquently than words.
Their faces light up when they see each other. Betty lifts Barry's hand to kiss it and they both smile and laugh. An engagement ring sparkles on Betty's left hand – staff helped Barry propose to her.
Teeto Adegbenro, who is one of Barry's caregivers, is passionate about his work.
“The quality of life you offer these people depends on the experience they have,” he says.
It takes 50 staff to help people in Churchfields live their lives to the fullest. Mencap employs approximately 7,500 people across all its departments. Many caregivers are poorly paid.
October's budget increased the National Minimum Wage (NMW) – a move expected and welcomed by care service leaders in a sector where it is difficult to recruit.
However, care organizations say changes to National Insurance Contributions (NICs) will have a big impact, particularly on social services, where many people work part-time and were previously below the threshold required to pay the tax.
Mencap says the NIC increase will add at least £615 to the annual employment costs of each of its employees.
If this is combined with the increase in the minimum wage, the charity will need to find an extra £12 million each year.
But if the charity increases everyone's pay to maintain pay differences that reflect levels of experience and responsibility, the annual additional costs could reach £18 million.
Mencap chief executive Jon Sparkes told the BBC it may have to stop running at least 60 services.
“These are services that provide basic day-to-day social care, support for 200 people with learning disabilities and services that employ around 400 people,” he says. “It’s the services that immediately worry me.”
He warned: “It could be more.”
Local authorities pay the charity to support people with learning disabilities, meaning in practice it would hand contracts back to councils.
Mr Sparkes says unless there is a substantial increase in fees they will have to tell councils “we cannot afford to run this service safely with the funding we are receiving”.
Similar concerns are widespread in adult social care services. A new report, commissioned by care associations and written by health and care analysts LaingBuisson, says 80-85% of social services in England are provided by small, local organisations, which have little financial resilience.
Mencap chief executive Jon Sparke fears services could be cut
Dr Jane Townson, of the Homecare Association, which represents providers who support people in their homes, is concerned about the real risk of a “significant reduction in care and support services”.
She fears this will leave some people without essential services and increase pressure on families and the NHS.
“We are at a critical point and need immediate government intervention,” she says.
Most social services in England are funded by councils. Care providers estimate that just to cover the increased costs of the National Minimum Wage and NICs, fees for their services are expected to increase by 9-10% next year.
But local authorities are also under enormous financial pressure. Melanie Williams, president of the Association of Directors of Adult Social Services (ADASS), represents the people who run the council's social services.
She says local authorities are already struggling financially, facing inflationary costs and growing demand from people who need more complex care.
“The costs are insurmountable,” she says. “Many of us are overspending on adult social services. We just feel like we're in an impossible situation.”
ADASS calculates it will take an extra £1.8 billion for care services in England “just to stand still”.
The government says ensuring the stability of the economy is one of the foundations of its plan to “bring stability, growth and investment to communities across the UK”.
He says he is tackling the challenges facing social services with a range of measures, including improving staff salaries and increasing financial support for families with caring responsibilities, adding: “We are the challenges facing adult social services and take the first steps towards building an adult social protection system. National care service.
The spokesperson added: “We are providing local authorities with an additional £3.5 billion in 2025-26, including a £680 million increase in the social care grant to support the sector. »
