Weekly Newsletter - 7.11.2024

Budget 'worst I've seen', says care home boss

Adult Social Care

Social Care Crisis

Raj Sehgal, CEO of Armscare, criticises the autumn Budget as detrimental to the care sector, predicting fee hikes of up to 80 per resident. He highlights the underfunding and undervaluation of social care, with care workers being among the lowest paid. The Budget's implications could add 350,000 annually to his business costs, potentially leading to care home closures.

Raj Sehgal says the social care sector is like a "poor cousin that has been ignored"

The Government has allocated an additional 22bn to the NHS and social care, with 600m for local authorities. However, the sector faces increased National Insurance and wage costs. Sehgal questions local authorities' ability to cover these expenses, stressing the need for parallel funding of social care and the NHS. The Government plans to detail funding allocations next year.

Digital Transformation

This year’s Autumn Budget brings critical financial support, including £1 billion for SEND, helping councils manage rising demands. Tools like QuickAction, Nava, and EHCP Plus are making it easier for councils to streamline tasks, improve resident engagement, and ensure that staff can focus on providing high-impact support where it’s needed most.

Live Event

In just three weeks, Agilisys’ The Great Public Sector Makeover: AI’s Answer to Systemic Challenges live broadcast will bring together public sector leaders and digital transformation experts to tackle urgent issues facing local authorities, healthcare providers, and digital leaders. This virtual event is tailored for professionals seeking real-world AI solutions to the pressing challenges and inefficiencies within public services.

🗓️ Date: 25th November 2024 (Monday)

Time: 3:00 PM GMT

Their event speakers will address the critical need for reform in the public sector, with discussions including.

  • Mark Thompson: Highlighting the “everything is broken” narrative to set the stage with a candid overview of the current state of public services.

  • Andrew Mindenhall & Darius Toomer: Sharing insights into how Agilisys is meeting these challenges head-on, with a focus on AI’s role as part of the solution.

  • Kenneth Corrêa: Presenting global use cases of Generative AI, AI agents, and applications across sectors, illustrating AI’s practical impact on transforming services.

The countdown is on - don’t miss this chance to be part of a critical conversation on the future of public services.

Social Care Policy

West Berkshire Council plans to transfer care provision at Willows Edge and Birchwood care homes to private companies to cut costs. The homes are currently over budget due to high agency staff expenses. A petition with over 1,000 signatures opposed the move, but the council believes an external provider can operate at market cost, saving money. A decision on the new operator will be made next week after a private tendering process.

The council's adult social care department must ensure adequate market capacity for residential care services. Bed capacity has decreased by seven since 2023, following the closure of two care homes, while demand has risen. A new care home is under construction, and plans for four more have been submitted, though they are unlikely to open before 2029.

Social Care

Tax increases and rising staffing costs could lead to care home closures, warn providers. The sector faces higher National Insurance contributions and minimum wage increases. Despite an additional £600m for social care, care groups argue this is insufficient, as costs are expected to rise by £2.4bn. The Liberal Democrats urge the government to exempt social care from the tax rise, highlighting the disparity in support between public and private providers.

Care England warns of "unprecedented danger" without further support. Mike Padgham, representing independent providers, notes the financial strain on care homes, with increased costs potentially pushing some out of business. The extra funding is deemed inadequate, as it will be quickly offset by rising expenses. Sir Ed Davey criticises the government's approach, suggesting it exacerbates the NHS crisis by increasing care provider costs.

Business Acquisition

Oak Care Home Services, led by Jaimon Lukose, has acquired Oaklands Care Home in Kirk Hammerton, North Yorkshire, from Maria Mallaband Care Group. The facility, registered with the Care Quality Commission, can accommodate up to 44 residents and boasts spacious outdoor areas. The acquisition aims to enhance dementia care in the region.

The new ownership plans a refurbishment phase to improve care quality, benefiting the local community. Paul Walsh of Maria Mallaband Care Group expressed satisfaction with the transition to a local operator, highlighting the potential for service enhancement. Business property advisor Christie & Co facilitated the sale, with the purchase price remaining undisclosed.