Burnham’s social care wage boost ‘will cost up to £2.2 billion’
Andy Burnham’s social care workers pay hike plan ‘will cost up to £2.2bn’, evidence shows.
The Prime Minister has promised to build on the accord agreed by his predecessor Sir Keir Starmer to deliver “fair pay” for carers. But the Conservatives claimed Mr Burnham was planning a pay rise that would blow a new £2bn+ hole in the budget.
Sir Keir pledged £500m of his Fair wages Agreement to empower councils to raise social care wages and to create legally binding minimum pay and conditions by 2028. However, Tory analysis indicated the median estimate of the cost of aligning social care pay with NHS pay was £2.7bn, creating a black hole of £2.2bn.
Skills for Care has estimated that raising social care workers’ salary to the level of NHS Band 3 pay within two years would cost £4.2bn, including an annual £2.7bn cost to the public.
Last week Mr Burnham gave his first big policy address and welcomed Sir Keir’s work on a fairer pay offer for social care workers in 2028-29. But he indicated he would go further on pay, promising to “look at how we turn the fair pay agreement into a bigger reform to improve the social care workforce”.
Mr Burnham said he wants ‘to lift it closer to NHS standards … and think about progression routes for young people going into social care, so they can progress from social care into NHS posts as well’.
“We will not get the care service that we all want until we improve the strength and the capability of care at the very front of the service and that means lifting up the social care workforce as best we possibly can,” he added.
The Prime Minister also said that carers should be the “best-paid” in society rather than some of the worst.
Sir Mel Stride, the shadow chancellor, said: ‘Once again the Prime Minister has delivered an announcement with an enormous price tag and a black hole to match. It’s the same failing that defined Keir Starmer.
“Starmer had four years in opposition to come up with a plan for government and didn’t. Now Andy Burnham is doing the same mistake of putting out unfunded legislation that will return this autumn as hefty tax rises.
“Any reforms to social care must be supported by a clear, credible and fully-funded strategy which delivers better care for the public and value for taxpayers.
Mr Burnham and Liberal Democrat leader Sir Ed Davey joined shadow health secretary Stuart Andrew for virtual cross-party talks on social care last week.
But Sir Mel said his party would back steps to improve social care “as long as they do not rely on more tax rises or more borrowing”.
Downing Street has rejected the Tory analysis, accusing Kemi Badenoch’s party of “playing politics” on social care.
A government insider said: “Andy is about solving problems, not scoring points and making up numbers.
Playing politics has a human cost – carers straining, families paying the price, our NHS breaking under the strain. It’s time to draw a line under it.
Mr Burnham has not ruled out a tax raid to pay for his social care proposals, saying there needs to be a “honest conversation” about the best way to fund a new national care service.
Civil servants have come up with suggestions that would require workers to make compulsory contributions to a new privately managed fund to pay for their care in later life.
Treasury officials have put out the alternative of a 10 per cent tax on estates, which Mr Burnham has backed in the past despite opponents calling the measure the “death tax”.
Mr Burnham has already found himself in a number of rows over unfunded policy proposals in his first two weeks in Downing Street.
One of the Government’s own ministers stated that a 20% drop in business rates for pubs was not completely funded and that there may need to be “additional measures” beyond boosting taxes on online tech companies and removing reliefs for vape shops.
Mr Burnham’s £850m VAT cut on power rates will also need cash at the autumn Budget after suggestions it would be funded by savings from Sir Keir’s aborted digital ID initiative.
Darren Jones, one of Sir Keir’s closest allies who was in government responsible for the now abandoned digital ID initiative, said the money for the scheme had never been provided.
There have also been questions over the funding for Mr Burnham’s plans to establish a £2 ceiling on single bus fares outside London.
No 10 claimed the money would be in the form of lending – rather than giving – to developing countries to assist them meet climate targets. Transport Secretary Heidi Alexander was unable to clarify whether any interest would be charged on the loans.
Sources at the Department of Health and Social Care say the Government is looking at a wider reform for the social care profession, with an emphasis on job stability and growth routes.
They said any policy introduced by Mr Burnham will be thoroughly costed.