Issue - meetings

The Board considered a report of the Strategic Director, People and Economy, on the planned introduction of the National Living Wage, and the impact for the pooled budget for Health and Care Services in Halton.

          The Board was advised that a compulsory National Living Wage (NLW) for workers aged 25 and above would be introduced from 1 April 2016. It was noted that the National Minimum Wage (NMW) would remain in place, and the distinction between the two was clarified in the report.

It was reported that the Chancellor of the Exchequer had commented that to help businesses to afford the increase in wages, he was cutting Corporation Tax by 2% by 2020 and that employers could reduce the amount of National Insurance Contributions that were paid for employees by 50%.

In Halton, there were currently 12 domiciliary care providers working across the Borough in 29 care homes. The majority of the contracted organisations had stated that the impact of the NLW would place economic challenges on their organisations and impact on their ability to remain viable in future.

A finance model to establish the potential impact of the cost of the NLW had been designed and adopted by local authorities across the North West region. This initial analysis, set out in the report, provided Members with an indication of the costs involved for Halton.

          RESOLVED: That approval be given to actively enter into discussions with Care Providers, to agree how additional costs will be met, as set out in paragraphs 5.4.3 and 5.4.4 of the report.