Ideal Carehomes pays 30p an hour above living wage

Ideal Carehomes has begun paying its staff 30p per hour more than the living wage, resulting in a 15 per cent pay rise for its lowest paid.

The national minimum wage reached £6.70 per hour this month but the care provider has said it is paying its lowest earning workers £7.50 per hour - higher than the £7.20 rate required by the Government from next April for staff aged over 25 in the UK.

The care provider, which operates 15 care homes across the North and Midlands, made the decision, despite inflation being near 0 per cent for the past year and some care providers describing the compulsory living wage as a financial burden that would hit the sector hard.

Ideal Carehomes chief executive Matt Lowe said his decision to make the introduction earlier than is compulsory, reflects the fact that "quality care requires motivated and committed staff".

He said: “The introduction of the living wage has given providers like us the opportunity to demonstrate our dedication to a quality care offer and recognition of how hard our staff work to create such great places to live.

“Offering an above living wage, never mind minimum wage, rise is a no brainer for us and puts us ahead of the curve in the sector.”

Ideal Carehomes aims to keep its staff motivated by offering other benefits to staff such as iPhones and shopping discounts.

Sarah Colling, Ideal Carehomes' head of HR, said: “Ideal wants to recruit and retain the best staff. We believe that today’s raise in hourly pay will show our staff how committed we are to their roles. It’s not all about wage, however, and we believe that providing our staff with full training, regardless of their role, is vital to creating the right caring environment." The Government’s living wage, compulsory from next April, will rise further to £9 per hour by 2020.

The private sector manages 80 per cent of care homes but some care home providers will struggle to cope with the added financial demands of paying a living wage from next April.

Most care home providers may want to pay its staff more, but many say the Government must increase funding to close the gap between what councils pay and the actual cost of care.

Care England, representing the UK’s largest care organisations, said staff wages currently account for more than 60 per cent of the costs of care, and in more complex cases this can rise to 80 per cent.

Care England has told Chancellor George Osborne, that a living wage could lead to a major provider closing within one or two years if funding from local councils is not increased.