Next in our series of ebriefings on the Government’s Green Paper: Transforming public procurement; looking at the Chapter 4 proposal to change the basis of contract awards.
The LGA estimate that Councils will need to find a further £330 million to fund social care to ensure providers can pay the Living Wage from an already shrinking budget. The Resolution Foundation estimate an even greater challenge. They estimate care-providers who would already have had to find £1bn to pay for increases in the minimum wage over the next five years will now face an additional bill of £1.3bn by 2020. So what will be the impact:
- Providers will be looking to renegotiate contractual terms with local authority commissioners to ensure sufficient funding to pay eligible staff the living wage from April 16 and to cover future increases. Unless further funding is earmarked for social care this is going to lead to some pretty difficult negotiations and local authorities may find they are constrained by EU procurement rules.
- The policy announcement didn’t seem to account for the fact that, in the social care world it is the Government who will ultimately pick up the bill. Expect some serious lobbying pushing the Government to increase investment in social care.
- Those providers who already pay staff £7.20 or more may have a competitive advantage and will want to be picking up work from other organisations who haven’t already got a business model that helps them deliver.
- Finance Directors will have been busy doing their sums to see how the Living Wage will play out over the coming years. We expect that for some providers this may be the final nail that means they decide to get out of the market, or certain parts of it, or to look for a merger partner to take advantage of economies of scale.
- Age may become a driving force in recruitment, undermining the need to focus on values to recruit staff who will deliver high quality care.
We will be commenting on the New Living Wage as it unfolds. For more detail on the new policy see our briefing here.
For more information
Contact Matthew Wort.
The Academies Financial Handbook is updated annually by the Department for Education and the Education and Skills Funding Agency; it contains a number of governance requirements for academy trusts.
Supreme Court publishes key decision for those working in the UK’s gig economy.
The 'Chocolate Snowman Appeal' is an amazing initiative that Anthony Collins Solicitors' (ACS) employees take part in every year.
The Building Safety Bill (the Bill) is said to be the most significant and wide-ranging change to the regulatory environment for higher risk building (HRBs) for over 45 years.
On 4 November 2020, the Restriction of Public Exit Payments Regulations 2020 (the Regulations) came into force; exit payments for the public sector were capped at £95,000.
The case was brought by the Official Receiver who sought disqualification orders under section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986) against the seven trustees of Kids Company and its CEO. It illustrates well the tension between the role of a fulltime paid CEO of a large charity and the role of its board as voluntary trustees/directors.
At the end of 2020, The Charity Governance Code was updated or 'refreshed' as it is termed on its website.
Anthony Collins Solicitors is today (Thursday 11 February) revealing the scale of its social impact during 2020.
In their first podcast of this series, current and future trainees will discuss their journey and route to securing a training contract at Anthony Collins Solicitors.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.