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Pembrokeshire care home group hit by £150,000 budget blow

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A COMPANY with six care homes in Pembrokeshire has revealed it is facing a £150,000 financial hit due to controversial Budget measures.

The hikes in National Insurance contributions, combined with an increase in the Real Living Wage, are set to cause “12 months of instability,” according to Mike Davies, managing director of Sunset West Care Homes’ holding company, Dale Roads Group Ltd.

The group operates six care homes, including Langton Hall Residential Home in Fishguard, Pen-Coed Residential Home in Saundersfoot, and Woodfield Nursing Residential Home in Narberth. Other homes in the group are Woodland Lodge Residential Home in Tenby, Torestin Care Home in Tiers Cross near Haverfordwest, and Pembroke Haven in Pembroke Dock.

Mr Davies warned that struggling care homes may need to ask families to help cover the cost of care for their loved ones.

He is supporting a new campaign launched by Care Forum Wales (CFW), which calls for social care to receive an NHS-style exemption from National Insurance increases or emergency financial support to prevent care homes and domiciliary care providers from going bust.

Save Social Care campaign

CFW chair Mario Kreft MBE is leading the Save Social Care, Save the NHS campaign, highlighting the issue in letters to Welsh MPs, Senedd members, First Minister Eluned Morgan, and Health Minister Jeremy Miles. Similar letters have also been sent to Prime Minister Keir Starmer and Chancellor Rachel Reeves.

The campaign, supported by the Five Nations Group, warns that third-sector providers, including charities and hospices, face serious risks due to the Budget measures.

Mr Davies shared these concerns, stating that Sunset West Care Homes is looking at an additional bill of more than £130,000 just to cover National Insurance increases. Additionally, the group expects to incur an extra £18,000 annually to cover Statutory Sick Pay costs.

With 169 registered beds across the group, Mr Davies said further financial strain from wage increases could push care homes to the brink unless additional funding is provided by the Welsh and UK governments.

He said: “Operating during Covid stretched staff resources to their limits. Now, with these additional Budget costs, we are facing a snapshot of the challenges ahead.

“If costs remain as projected, we anticipate an extra £130,000 for National Insurance contributions alone. This doesn’t even account for the wage increases yet.”

“Uncharted territory”

Mr Davies warned that the social care sector in Pembrokeshire could face instability, with smaller operators struggling to survive.

He said: “We’ve already seen care home closures, and the likelihood is that smaller operators will find it even more difficult going forward. We are relying on additional funding to meet these new costs.

“Eighty per cent of our occupancy in the county comes from local authority placements. If there’s a shortfall, families might need to provide additional voluntary contributions.”

National funding crisis

CFW has calculated that the care sector in Wales faces a £150 million funding gap due to Budget measures, including a 1.2% rise in employer National Insurance contributions, a cut to the Secondary Threshold to £5,000, and a 5% increase in the Real Living Wage to £12.60.

Mario Kreft MBE said: “It represents a 37% increase in employer NIC for a member of staff earning £25,000 a year. This is effectively a tax on publicly funded care and on working people, which will ultimately impact families.”

Mr Davies echoed these concerns, adding: “We’ve discussed funding issues with local authorities, but they don’t have the money either. It’s going to have to come from the Welsh Government and Westminster.”

Pictured: Sunset West Care Homes group managing director Mike Davies says Budget measures will hit care homes hard (Pic: Sunset/Herald)

Business

Welsh Water slammed after thousands were left without water

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DWR CYMRU has been slammed by a councillor who warned people “could have died” after thousands were left without water.

Tens of thousands of residents across the county were left without water after a mains burst at a treatment plant in Dolgarrog last week.

Welsh Water said supplies were restored to homes and businesses on Monday morning.

The chairwoman of Conwy’s finance committee slammed Dwr Cymru during a meeting at the council’s Bodlondeb HQ on Monday.

Old Colwyn councillor Cheryl Carlisle thanked volunteers and council staff for pulling together before calling for a public inquiry into the crisis.

Security guards

Cllr Carlisle claimed those in poor health had been left without water and said security guards at water stations had turned people away with small children.

“I’d like to take the time to thank everyone that’s being involved in the crisis in Conwy over the last six days, the selfless volunteers, everyone that provided water and help to the elderly and vulnerable, and also the engineers for fixing the problem and our social care staff and the other staff who have helped keep our nursing homes going, our care homes, and (looked after) the most vulnerable,” she said.

“On a different note, there will need to be an inquiry, won’t there, into the crisis response from Dwr Cymru.

“You cannot fault the engineers, but the delays in basic organisation, like setting up the water stations.

“It was 48 hours in my particular community. Without the volunteers, it would have been very, very serious, indeed, for those with health conditions.”

She added: “The priority lists of Dwr Cymru did not work.

“There were people on it that were still undelivered (not had water delivered) as was last night [Sunday], cancer patients, dialysis patients. This is completely unacceptable.

“Security guards turned away members (of the public) with little children. That was absolutely unacceptable as well.

“I think this has brought out the very best in people and, in just a few, the very worst. There needs to be a clear disaster plan going forward.”

Cllr Carlisle then insisted an inquiry was needed after Cllr Goronwy Edwards suggested a review.

She added: “I think it needs to be something more than a review, given the seriousness.

“People could have died, those with (serious health conditions). I don’t think we should downplay anything until everyone has come through this intact.”

Conwy Council leader Cllr Charlie McCoubrey also thanked those councillors and members of the public “who had gone above and beyond to look after their communities”.

He added the authority was now in a recovery phase with some households still without water and some schools affected.

“Clearly, with any major incident, questions need to be asked about could this have been prevented, was the response adequate, and what happens in the future in terms of how we coordinate things and prevent incidents like that happening again?”

Cllr McCoubrey said he was working with Welsh Government to get answers from Dwr Cymru.

Report by Richard Evans, Local Democracy Reporter

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Business

Decision due on development of buildings at Trewern Farm

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A CALL to let a 950-herd north Pembrokeshire dairy farm keep a farm shed built without permission over a decade ago is expected to be approved later this month.

In an application recommended for conditional approval at Pembrokeshire Coast National Park’s development management committee meeting of January 29, Trewern Farms Ltd is seeking permission for the retention of the agricultural building and lay down area at Trewern Farm, Felindre Farchog.

The application is part of a wider complex planning history associated with the site.

A report for Park planners says: “Trewern Farm is operated as a zero grazing style dairy farm with 304 hectares located on two separate parcels of land, one at Trewern with the remainder being at Penpedwast, adjacent to Castell Henllys. The farm has a dairy herd of approximately 950 cows.

“Trewern Farm has expanded significantly over recent years with many of the buildings and structures on site having been erected without the prior benefit of planning permission, and having since been regularised through a combination of retrospective applications and certificates of lawfulness.

“The building subject of this application is believed to have been constructed in 2014. The site currently comprises an agricultural shed immediately adjoining another shed and is used for cubicle housing.

“A slurry lagoon, silage clamps and 12 of the newer agricultural buildings are now lawful as Certificates of Lawfulness were granted for these whilst the Authority was awaiting an Environmental Impact Assessment to be submitted by the applicants for the 2015 planning application to regularise the unauthorised buildings.

“However, this is the last of the outstanding agricultural buildings which are not lawful, and an enforcement notice was served in May 2018 requiring its removal. This notice was appealed in November 2019 and is currently being held in abeyance by the Planning Inspectorate.”

It says the building referred to in the application “is described as being designed to house cattle in a series of cubicles, and forms part of a longer set of buildings running along the southern section of the farming complex,” adding: “The livestock numbers are not proposed for increase as a result of this application but will be as secured [by a planning consent] restricted to no more than 960 milking cows with 1020 maximum excluding calves.”

Local community council Nevern has previously said it has “grave concerns” about the application, asking, amongst other things, how the 960 cattle limit will be policed and important nearby woodland will be protected.

The application was previously recommended for approval at the park’s December meeting, but was deferred as not all received documentation had been published on the national park’s planning website.

The application is now returning to the January meeting, again recommended for conditional approval.

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Business

Castell Howell launches new Food Show at Welsh International Culinary Championships

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CASTELL HOWELL has launched a new Food Show, showcasing the food trends and innovations that the hospitality industry can expect to see in 2025 and giving visitors a preview of its growing range of Welsh food and drink products. 

The new industry event is taking place alongside the 2025 Welsh International Culinary Championships (WICC) at the International Conference Centre in Newport from 20-22 January.

Castell Howell managing director Matt Lewis said: “The Castell Howell Food Show will be a new highlight in this three-day celebration of Welsh culinary excellence, hospitality skills, and innovation. As the largest wholesale supplier of Welsh Food & Drink, it gives us the opportunity to champion our excellent Welsh producers, to support hospitality customers in developing their businesses and, ultimately, to help our communities and local economies throughout Wales to thrive.

“Visitors will have the unique opportunity to engage directly with Castell Howell specialists representing every aspect of our business from insights into the latest trends, to discovering what’s in the pipeline for Welsh food and drink producers in 2025,” he said.

The Castell Howell Food Show will be a new annual event in the calendar at the start of the year, serving as a preview for its larger established trade shows, hosted at Parc y Scarlets in Llanelli and Parc Eirias in Conwy. 

The Welsh International Culinary Championships, organised by the Culinary Association of Wales, bring together the nation’s most talented craft chefs, butchers, and front-of-house professionals for three days of demanding competition. The 2025 WICC also hosts the Skills Competition Wales hospitality finals, showcasing the country’s top apprentices.

Deputy First Minister, with responsibility for Climate Change and Rural Affairs, Huw Irranca-Davies, said: 

“These two events promise to be a fantastic showcase for Wales’ food and drink industry. It’s an opportunity to celebrate Wales’ culinary excellence and the strength of our hospitality sector. Castell Howell plays an important role in supporting Welsh farmers, producers and the hospitality sector – and I wish them well with this new event.” 

Further information about the event is at foodshow.wales

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