Care Industry: Wage costs up sharply.

This is a sector yet to adjust to the impact of UKBA essentially closing down the Bulgarian and Romanian immigration route in the first quarter of 2010, increased immigration controls, coupled with increased demand for people as the outgoing government wanted more people to be cared for in their own homes.

Early movers recognised that the polish worker made up 50% of the Eastern European workforce but that the skills required - good English , a driving license and an interest in care would be at a premium and adjusted their pay rates accordingly. Also the demand for trained experienced people has stopped. Training is given on arrival.

However, we are still getting calls from operators expecting to  pay rates near National Minimum Wage and wanting experienced workers and they have no chance.

We appreciate that if your rates from local authorities are low you are constrained but the inflationary rise in wages has been caused by the governments own actions on immigration.

We are also aware that under the austerity packages there is further downward pressure on rates and suppliers need to be strong in negotiations and can not afford to make any concessions.

It is going to get tougher moving forward. 

We have "standing orders" for care workers and the minimum rate is rapidly approaching £8 an hour + benefits for direct recruitment and £11.50 an hour under our long term contract labour schemes.