Business

Wales faces ‘postcode lottery’ in care home fees, say sector representatives

Published

3 months ago

October 6, 2024

ALL local authorities in Wales should standardise payments for care home places, according to Care Forum Wales, the organisation representing the sector. The current system, where fees are set by individual councils, has led to stark discrepancies across the country, creating what the forum describes as a “postcode lottery”.

A significant variation in weekly charges for basic care has emerged between neighbouring counties, with some care home owners warning that the situation could force more closures. In two adjacent counties, the fees can differ by as much as £70 per week.

The Welsh government has acknowledged the issue, stating that its new National Office for Care and Support is considering measures “to bring about consistency”. However, it has also indicated that fee rates will continue to differ due to “local factors like land values for care homes”.

The Welsh Conservatives criticised the current approach as a “false economy”, arguing that social care and health services should not be competing for resources. Plaid Cymru echoed the need for change, calling for a “transformational change” in the health service.

Orme View care home in Llandudno, Conwy county, has seen its fees rise this year, following a decision by Conwy council to break away from the system where all councils in north Wales set their fees collectively. Instead, the council has adopted a new fee structure based on recommendations from an independent assessor, resulting in significantly higher payments.

Steffan Robbins of Orme View welcomed the change, calling it “an amazing, positive step forward.” Speaking to Politics Wales, he said, “Conwy have taken that step to really assess the true cost of care and make sure they deliver a fee that’s affordable to them, but also a fee that reflects the true costs that we’re seeing in the sector.”

In contrast, the Old Vicarage care home in Llangollen, Denbighshire, is receiving thousands of pounds less per resident each year compared to Orme View because it relies on the fees set by Denbighshire council. Although there has been an increase in fees this year, it remains substantially lower than the rates in neighbouring Conwy.

Currently, the fees for basic care in Conwy are £846 per week, while in Denbighshire they are £774. The disparity means that some care homes, like the Old Vicarage, are forced to charge residents additional top-up fees to stay afloat.

“It’s very disappointing,” said Bethan Mascarenhas, who runs the Old Vicarage. “As somebody who’s very invested in the work that they do, we really strive to give the absolute best level of care… Unfortunately, the divide between the fees will make that difference in what you can provide.”

A call for change

Care Forum Wales, the umbrella organisation for Welsh care homes, has warned that the current system is undermining facilities in areas where the fees do not reflect the actual costs. Chairman Mario Kreft emphasised the need for uniformity, stating, “The new National Office for Care and Support needs to ensure we have parity across Wales, that there is at least an understood basic level of funding across all local authorities and health boards. We’ve got to move away from a postcode lottery.”

Denbighshire council responded by asserting that it is striving to balance financial constraints while ensuring the sustainability of the care sector in the county. “We have worked hard to strike the delicate balance between navigating challenging financial constraints and ensuring that we are maintaining a sustainable future for the care sector in the county,” a spokesperson said. The council also noted that it has not seen evidence to suggest that differing fee rates are affecting the solvency of care homes in Denbighshire.

Speaking to BBC Politics Wales, Welsh Conservative MS Sam Rowlands urged the Welsh government to ensure that local authorities receive adequate funding to properly compensate care homes. “It’s kind of a false economy pitching social care against health services, because we know that there are hundreds and hundreds of beds in our hospitals at the moment which are blocked because people cannot access the care services that they need,” he said.

Plaid Cymru MS Mabon ap Gwynfor also called for a significant shift in the approach to care services. “We need to see a transformational change within the care service,” he said. “We need to see the Welsh government actually put this first and foremost as a priority… and to deliver that national care service so that care is free for individuals, that people working in the sector are paid properly, so that we know that our loved ones get that care.”

The National Office for Care and Support is currently exploring the possibility of introducing national fee methodologies to standardise care home fees. However, it has indicated that this does not necessarily mean a single national fee rate, as fees will still vary according to local factors such as land values for care homes.

The debate continues as stakeholders await the government’s next steps in addressing the inequalities in care home funding across Wales.

Business

52 homes to be built in Roch as scheme gets final sign-off

Published

18 hours ago

December 20, 2024

Bruce Sinclair - Local Democracy Reporter

THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.

Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.

18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.

Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.

An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].

“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.

“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”

Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.

Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.

The Section 106 agreement was recently agreed, with the application now formally approved.

Business

World of engineering and welding SPARCs interest in Ysgol Harri Tudur’s female learners

Published

20 hours ago

December 20, 2024

Richard Lewis

AN EVENT hosted by Ledwood Engineering gave girls from Year 8 and 9 at Ysgol Harri Tudur first-hand experience of the world of engineering recently.

Engineering is a booming sector in Pembrokeshire with a high demand for skilled workers in exciting career pathways associated with the development of low carbon and renewable energy industry and the Celtic Freeport.

The young women heard from industry experts on the importance of engineering in Pembrokeshire, and had hands on experience using a welding simulator, at the company’s Pembroke Dock site.

The learners are part of the County’s SPARC (Sustainable Power and Renewable Construction) initiative aimed as inspiring and empowering young females to consider careers in science, technology, engineering and mathematics (STEM) pathways where females are under-represented in the workforce.

SPARC is funded through an alliance comprising Blue Gem Wind, Ledwood Engineering, Port of Milford Haven, RWE Renewables, Pembrokeshire County Council, Pembrokeshire College and the Swansea Bay City Deal.

Mrs Laura Buckingham, SPARC practitioner at Ysgol Harri Tudur said: “Our learners had a fantastic experience at Ledwood Engineering. They were given lots of advice by industry experts on the different career options and pathways within the engineering sector.

“They appreciated the opportunity to ask their questions and found the session very informative. Having the chance to trial their welding skills on the simulator was an experience they continue to talk about and has definitely piqued their interest.”

Poppy Sawyer, Year 8 SPARC learner added: ‘It was a really good trip. Talking to the different people there has helped me know more about the jobs we could get which will be very useful when making choices for my future.”

“They helped us a lot by giving us lots of information. We were able to look around and try welding. It was really fun,” added Tianna Marshall, Year 8 SPARC learner.

The Regional Learning and Skills Partnership also launched its Explore Engineering interactive website at the event.

Business

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

Published

2 days ago

December 19, 2024

Tom Sinclair

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.”