118 CEOs warn Reeves social care situation is the 'most difficult in years'

MORE than 100 chief executives have warned that Rachel Reeves' increase in national insurance will make the coming months the hardest in years for social care.

- Giles Sheldrick

The heads of 118 organisations put their names to a letter demanding the Government recognises that properly funding adult social care is an "investment rather than a cost".

Cash-strapped councils responsible for provision of care will discover this week how much they will receive in annual settlements. The warning claims pain will be felt by millions of people if there are no additional funds for a sector now hanging by a thread.

The letter, arranged by the Local Government Association and signed by organisations including Age UK, Mencap, the British Association of Social Workers and the Autism Alliance UK, paints a grim picture of how the Chancellor's changes will send social care into meltdown.

The rise in employers' NI contributions came in Labour's first Budget in 14 years.

Limited

From April, they will pay 15% on salaries above £5,000 compared with 13.8% above £9,100 now. The living wage increases to £12.21 an hour while the minimum wage for 18 to 20-year-olds will rise to £10 an hour.

The letter says: "The scope for savings and efficiencies is now extremely limited and current funding is insufficient. Without significant new funding, the coming months will likely be the most difficult we've seen in recent years. The Care Provider Alliance estimates that 73% of social care providers will need to refuse to accept new packages of care from councils or the NHS; 64% will need to let staff go; 76% will need to make cuts to training and resources for staff; and 22% will close down.