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Silly argument—— Straight answer

By Mike Cunningham On July 9th, 2020

The Cavendish Coalition– which represents UK health and social care groups – says it is gravely concerned regarding immigration proposals which they say will seriously affect staff shortages in Care Homes. They claim that the current proposals would not allow enough overseas workers to be recruited, it has warned. They argue that the restriction on immigration forced by a salary cap of £26,500 would further endanger the staffing levels in the Care Home sector.

The government said immigration is “not the answer to the challenges in the social care sector”.

However, the head of the Migration Advisory Committee has stated how the Cavendish crowd can solve their problems. He said “Pay them more”!

14 Responses to “Silly argument—— Straight answer”

  1. I totally agree.
    And the article you linked to is spot on.
    My fiance was it highly qualified care worker. Despite the fact that she could perform difficult procedures, such as install, remove and operate a ventilator, and administer potentially dangerous drugs, her pay was appalling.

  2. good post and correct – pay them more
    have social care under the NHS , currently the churn rate ( turn over of staff ) is 33%
    pat might put my thread up soon, but as we’re here , the link is below
    https://www.bbc.co.uk/news/uk-politics-53297312
    Mike I’m glad this is NEWS, and it needs to keep on making news, as for years all the gov’t has done is kick this subject into the long grass
    I’m not encouraged by PM recent outburst blaming care-workers and staff at carehomes for the huge number of deaths in that sector. Its truly nasty and appalling , compassionate conservatism was the motto a whole ago . The mask slips

  3. I’m not indifferent to the idea. However in 2018/19, the total expenditure on adult social care by local authorities in England and Wales was £22.2 billion. Estimates suggest that about half the costs of running a care home are from staffing costs. So £11.1 billion. Now not all of those will be on the NLW but it would likely not just impact on those on the NLW as there will be an inflationary impact on everyone else. Assuming you increased staff costs from £8.72 per hour to £12 per hour (as recommended by Professor Bell) that would be a 38% increase in staff costs or about £4.2 billion.

    So can I ask where local authorities are getting an extra £4.2 billion?

  4. So can I ask where local authorities are getting an extra £4.2 billion?

    Perhaps the banks could pay back what they still owe us, from the the £500 billion they received during the bailout.

  5. Which isn’t actually the case. Most of those was not actual support but underwriting and guarantees. The actual fiscal amount given to the banks was £137 billion, which as of last year the overwhelming majority had been paid back. The outstanding amount, as of 2019, is about £27 billion.

  6. In fact the only bank that has not repaid its debt is RBS which is owned by the government.

  7. Seamus

    You’re wrong Seamus.
    I can’t go into mega detail now because I’ve got to go out.
    But off the top of my head RBS alone still owes us £46 billion

    https://www.thisismoney.co.uk/money/markets/article-6160827/RBS-not-repay-46bn-bailout-cash-warns-chief.html#:~:text=Chairman%20admits%20RBS%20has%20lost,their%20%C2%A346bn%20bailout%20money&text=The%20Royal%20Bank%20of%20Scotland,money%2C%20its%20chairman%20has%20admitted.

  8. RBS borrowed £46 billion from the Exchequer. It has repaid about £12.5 billion. It has also accrued interest payments of around another £16 or so billion but the UK government owns shares in RBS and increased value in those shares is worth about £17 billion.

    All told RBS (which is owned by the government) owes about £32 billion. While the rest of the scheme has actually turned profit for the government.

    With the exception of government owned RBS the banking intervention made the taxpayer money.

  9. Lloyd’s owe 400 million, UKAR (Bradford & Bingley and Northern Rock assets) made the UK government 2.6 billion, as well as the liquidity underwriting schemes (charged fees but didn’t cost anything because no one went bust) made the government £8.1 billion, while loans to other banks have an outstanding balance of 200 million.

    RBS are the only real outstanding debt of any great amount.

  10. I could be wrong, but I don’t think the information you’re quoting is accurate.

    https://qz.com/1297178/how-much-has-the-british-government-lost-by-selling-rbs-shares/

  11. The UK government selling shares on the cheap, with discounts, rather than at market value, is a UK government mistake. It isn’t a bailout of the banks.

    The National Audit Office are including the interest on the amount it cost to buy RBS, while the OBR list that separately. And the UK government made about £18 billion in market value, compared to losing £17 billion in interest.

    And the information I’m quoting from is from the OBR. They publish a yearly update in their Economic and Fiscal Outlook.

  12. So can I ask where local authorities are getting an extra £4.2 billion?

    The simplest answer is for the government to be honest. Explain this amount is needed to increase the pay for everyone in the care homes to a proper living wage and tell the public this will require additional taxation and where this tax rise will come from.

  13. Except it won’t be limited to care homes. Other businesses and sectors will have to raise their wages to compete, which will increase prices and thus limit the marginal gains made by the care home staff. So the story will be I can’t survive on £9 an hour, and in five years it will be I can’t survive on £12 an hour.

  14. Money is not the only determinant, they’ve got to stop the churn-over and get standards up , this will be much better run by NHS. they’ll have logins for mylearning and certificates , it’ll just be the thing that’s required, everyone knows it. But its going to cost money
    we’re living longer
    https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/ageing/articles/livinglongerhowourpopulationischangingandwhyitmatters/2018-08-13
    ~seamus the upside is there are more and more business’s catering for the third age: holidays, leisure, volunteering . Its like everything , a supply creates a demand
    Lets just do it ..