Budget 2020: Chancellor dodges tackling 'big issue' of social care

Chancellor Rishi Sunak has announced a £5bn emergency fund for the NHS, in response to the coronavirus outbreak but said the “big issues” such as social care will be tackled “over the next few months”.

The Chancellor’s Budget unveiled the fund as part of a £30bn stimulus to support the economy through coronavirus and an extra £6bn was also announced for the NHS over the next five years.

Mr Sunak promised more for the NHS if needed but, crucially, no money was announced to fix the crisis in social care.

At the end of his speech, the Chancellor said: “This is just the start. Over the next few months, we’ll tackle the big issues head on. From our national infrastructure strategy to social care”.

In his speech, Mr Sunak said Statutory Sick Pay (SSP) will be paid to those who choose to self-isolate, even if they don't have symptoms. For businesses with fewer than 250 employees, government will fund SSP for two weeks – up to £2billion - to encourage self-isolation.

An employee must earn at least £118 a week to qualify for SSP, which is set at £94.25 a week. Mr Sunak announced self-employed workers who are not eligible for sick pay will be able to claim contributory Employment Support Allowance.

"‘This budget gets it done" was the mantra Mr Sunak said repeatedly in the House of Commons but Labour leader Jeremy Corbyn, as well as care leaders were alarmed that nothing was being done for social care.

Don't wait months, Labour tells PM

In response to the Budget, Jeremy Corbyn asked: “What support will be available for lower-paid workers who don’t meet the lower earnings limit for SSP?

“The most vulnerable people to coronavirus are older people. That is when we need a strong social care system. But social care is in crisis. Instead of the government presenting a social care plan…they’re asking the rest of us to come up with ideas.

"Underpaid care workers - a quarter of them on zero-hours contracts - travel from house to house to provide care to elderly and sick people. It’s a model that could scarcely be better designed to encourage the spread of a virus.

“So it is vital that the government doesn’t wait a few months but comes up now with answers to ensure that care workers do not lose out from staying away from work if they experience the symptoms”.

‘Impossible to ensure safety of this country’ without social care

Care leaders have reacted with anger to the Chancellor’s Budget.

Martin Green, chief executive of Care England, said: “The Chancellor’s Budget gave unlimited support to the NHS to fight the coronavirus and whilst very welcome there was no mention of social care.

“It will be nigh impossible to ensure the safety of this country without the involvement and adequate resourcing of adult social care.

“This was an oversight by the Government and despite its commitment to getting social care done it underlines the lack of understanding about the interrelationship between health and social care. Are we no further forward?”

Mike Padgham, chair of the Independent Care Group said: "It is worth remembering that there are 410,000 people in residential care, almost three times the number of people in hospital beds. To be able to cope with coronavirus, support for the NHS has to be matched by support for social care".

'Dementia is already a global pandemic'

"Dementia is already a global pandemic for which there is no cure even remotely on the horizon" said Laurence Geller, global business ambassador of the Alzheimer’s Society.

Mr Geller added: "Making care a career through a proper skills accreditation scheme will improve social care staff retention, one of the major challenges we face as over 400,000 staff leave the industry each year."

Siva Anandaciva, chief analyst at The King’s Fund said: "It is hugely disappointing that this Budget does not include an emergency cash injection to help local government to address social care needs beyond coronavirus".

Association of Directors of Adult Social Services president Julie Ogley said: "The government has chosen not to address wider pressures on adult social care in today’s budget, the previously announced funding for 2020-21 is not enough to place the sector on a sustainable footing in the short-term.”

In his Budget speech, Mr Sunak also announced a coronavirus loan scheme to cover the cost of wages and bills. Loans of up to £1.2m will be offered to support small and medium-sized (SME) businesses.

- Mr Sunak promised a £3,000 cash grant per business for any firm that is currently eligible for the small business rates relief.

"This is a £2bn cash injection direct to 700,000 of our smallest businesses," Mr Sunak told MPs.

- England's retail, leisure and hospitality firms will not pay any business rates in the coming year. This will apply to companies with a rateable value of less than £51,000.

- A £500m hardship fund for local authorities to support economically vulnerable households.

- The National Insurance threshold will be raised £8,632 to £9,500 next month - saving a typical employee £104," the Chancellor announced.

-A plastic packaging tax will come into force from April 2022. Manufacturers and importers whose products have less than 30 per cent recyclable material will be charged £200 per tonne.

- Mr Sunak says the Office for Budget Responsibility expects growth to be 0.5 per cent higher over the next two years as a result of the packages he has announced.

The growth forecast is 1.8 per cent in 2021-22, 1.5 per cent in 2022-23 and 1.3 per cent in 2023-24.

The Bank of England announced an emergency cut in interest rates from 0.75 per cent to 0.25 per cent, in response to the coronavirus outbreak.

Caroline Abrahams, charity director at Age UK and co-chair of the CSA (Care Support Alliance) said: "There’s bound to be a concern that social care is destined to be always the bridesmaid and never the bride, and unfortunately today’s Budget did nothing to alleviate our anxiety.”

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