The monthly round-up from the Anthony Collins Solicitors charities team.
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.
In this ebriefing, we identify what we see as the key messages arising from recent prosecutions in the care and housing sectors.
A recent High Court case on costs could prove essential reading for clients who have cases in the magistrates' courts.
The employment and pensions team offer practical advice on whistleblowing.
Partners, David Alcock and Sarah Patrice, have been involved in reviewing the new Code of Governance for community-led housing, published on 21 May 2021 by the Confederation for Coop Housing.
Following the eviction ban being lifted on 31 May 2021 and further to our previous ebriefing, the new notice of seeking possession forms are now available on the Government website as Word versions.
The European Court of Justice's standpoint on the Wiener Wohnen landowning developer case, and how the level of influence over the work did not amount to a decisive influence.
The Law Commission's Technical Issues in Charity Law report revealed that many charities struggle with a range of technical issue in the law.
The Law Commission recommended four key changes to the law in respect of mergers and the incorporation of charities which we have detailed in this ebriefing.
Over the last few weeks, we have published individual ebriefings on some of the key changes to be implemented following the Government’s response to the Law Commission’s report.
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