Thursday, July 09, 2015

New National Living Wage Will Boost Care Worker Pay From April 2016

A new National Living Wage of £7.20 an hour for workers aged 25 or over will be introduced from April 2016, the UK Chancellor George Osborne announced in his Budget Statement yesterday.

The National Living Wage will replace the National Minimum Wage pay rate (for over 25's) - currently £6.50 per hour and is set to rise to £6.70 per hour on 1 October 2015 - next April, and will rise to over £9 an hour by 2020.

Some workers will lose a benefit called 'tax credits', which means the pay rise is not as exciting for them, but for most the new living wage will be a welcome boost to their take home pay, especially with the reduction in tax for the lower paid.

The UK government wants to make it more attractive to work than live off benefits.

Colin Angel, Policy Director for the UKHCA (United Kingdom Care Home Association) said:

"UKHCA supports measures which improve the terms and conditions of low-paid workforces. We note that Government's announcement on a National Living Wage for workers aged 25 years and above is offset to some degree by changes to employers' National Insurance contributions. However, due to the age profile of the social care workforce this announcement will have a significant impact on the cost of homecare."

Most home care providers and nursing agencies already pay their staff above the minimum wage and is currently recruiting Care Support Workers to work in Hertfordshire, Northampton and Southend-on-Sea. The company has also recruited overseas Nurses, Doctors and Health Care Assistants (HCA's) from EU countries, such as Spain, Ireland, Greece and Croatia, to work in UK NHS hospitals and care homes.

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