East Riding of Yorkshire Councillors have expressed deep concern over the impact of the recent government budget on the care sector.
A motion put forward by Councillor Jonathan Owen, and backed by fellow councillors, highlighted the pressures facing care providers in the region and called for greater financial support from central government.
Councillor Owen argued that the care market, already under strain, is facing a “tipping point” due to rising costs. The recent increase in the minimum wage, coupled with the rise in employer National Insurance contributions, is placing a significant financial burden on care providers, many of which are small businesses:
Councillor Owen also highlighted the disparity between funding for the NHS and social care, stating that the care sector received only £600 million in the recent budget, while the NHS received "billions". This disparity, he argued, fails to recognise the crucial role that the care sector plays in supporting vulnerable residents and undermines the government's commitment to parity of esteem between health and social care.
Councillor Owen warned that without adequate financial support, the care market will struggle to meet the growing demand for care services. He cited a statement by James Tugendhat, chief executive of care home provider HC-One, who warned that the sector faces capacity challenges due to the rising costs. Tugendhat highlighted that local authority fee rates often fall below the true cost of care, making it difficult for providers to remain sustainable:
The motion received support from Councillor Denis Healy, who proposed an amendment calling for cross-party talks to establish a long-term funding solution for social care. Councillor Healy emphasised the urgent need for a sustainable funding model for social care, arguing that the current crisis is leaving hundreds of thousands of people waiting for care.
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