Low pay and Brexit risks shortage of almost 400,000 care workers

Low pay and Brexit is expected to create a shortfall of nearly 400,000 social care staff in England by 2028, a leading think tank reports.

The Institute for Public Policy and Research (IPPR) has reported the shortfall is due to Brexit's limits on EU migration and recruitment issues ‘inextricably linked to low pay and poor working conditions’ implemented by care home owners and home care providers.

Linking the issue to government’s underfunding of social care, the IPPR's new report stated: ‘Our modelling shows that – on current trends, and assuming the ending of freedom of movement – there will be a shortage of nearly 400,000 workers [in adult social care]’.

’Power imbalance’ causes 'exploitation’ of care workers

The IPPR’s report ‘Fair Care: A workforce strategy for social care’ added: ‘Providers have competed by driving down pay and conditions, and they have faced little resistance given the limited bargaining power of the workforce and the limited enforcement of employment rights. These factors are combining to create a social care workforce crisis’.

The IPPR highlights the issues as stemming from social care’s underfunding and 'a delivery model based on cost not quality'. With half of all care workers - more than half a million people - paid below the real living wage, the think tank says there is ‘evidence of widespread avoidance of the minimum wage’.

With one in three care workers on a zero-hours contract, the report quotes care workers who say low pay requires colleagues to work excessive hours or multiple jobs and describes ‘widespread use of zero-hours contracts’ which leave many staff in an insecure position.

With low levels of union membership, zero-hours contracts and a lack of enforcement of basic employment rights, the IPPR described a ‘power imbalance in social care’, which prevents workers from winning fair pay and conditions.

‘The poor treatment and widespread exploitation of the social care workforce has a significant negative impact on quality of care. Understaffing and pressure on time leads to care needs being unmet and the lack of training inhibits the ability of workers to provide high-quality care’.

Nicole, a former care worker retraining as a nurse is quoted in the report. She said: “Pay everywhere is just bad. They keep saying that the country has a deficit of carers. Maybe if they improved terms and conditions and paid care workers a bit more, they would get more people wanting to do it.”

The government’s funding for local authorities has been cut by half since 2010, leading to cuts to care budgets just as demand is rising.

The IPPR recommends government ensure all care workers are paid at least the real living wage. It estimates raising all workers in social care to the real living wage in England would require an extra £445 million, beyond current funding needs. It recommends Government organise long-term social care funding, with a 1p increase in National Insurance.

Sector council and visa benefits

The think tank also reports a lack of ‘effective minimum training’ requirements for care workers. It states only half of care workers having relevant social care qualifications and limited opportunities exisiting for progression in social care.

The IPPR is calling on the Government to establish a sector council to bring together employers and workers to negotiate a ‘legally-binding sectoral agreement’ which sets out minimum standards for pay and terms and conditions with additional funding for the sector ‘conditional’ on securing a sectoral agreement.

It recommends the Care Quality Commission be given ‘a wider remit’ to focus on quality of employment as well as quality of care and calls on the government to establish a minimum commissioning cost for local authorities to ‘ensure care is not commissioned at unrealistically low levels’. The report also recommends minimising the impact of Brexit by revising the Shortage Occupation List to include social care jobs and introduce a ‘Trusted Sponsor Scheme’ to enable care providers with good employment practice to be eligible for an increased range of visa benefits.

A large private sector provider quoted in the report stated: “We want a motivated workforce, we don’t want a 30 per cent turnover in our workforce, we want people to enjoy coming to work…in that sense we want exactly the same things as the workforce and the unions…we just can’t do it on the money we get paid”.

To read the report ‘Fair Care: A workforce strategy for social care’ visit the IPPR’s website.