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Sector Focus: Care homes - the effect of the national minimum wage increase

Date April 1st 2016 by in Categories Care, HR and H&S

1st April 2016 marked D-Day for many care homes across the country with the implementation of the National Living Wage increase.  Recent difficulties within the care sector have been widely publicised, including government cuts, NHS spending reductions and staffing shortages so how will you cope with this added strain on your finances? With all of these issues to deal with it's no wonder that the care sector is struggling to keep its head above water.

Perhaps you are amongst those care homes that are experiencing difficulties? Are you concerned that you will not be able to afford to pay staff the new minimum wage and the impact that this will have on your staff levels and business finances?

With life expectancy at a high of 81 and approximately 400,000 older people now living in care homes in England there are already huge shortfalls in effective facilities available and it's thought that the new legislation will cost the sector an extra £1billion a year by 2020, causing some homes to fail in the next 12 months to 2 years.

At a time when spend is at an all-time high, it might be time to look at how you can do things differently and cut costs in other areas to allow for this increase in staff costs.

BCR Associates specialise in reducing costs across a wide range of essential spend areas, managing risk and leaving you with extra free time to manage your business. Our team of experienced consultants together with an exclusive panel of suppliers will manage everything on your behalf, from an initial review, supplier and contract negotiations, transfers, ongoing account management and diarising your renewals.

If you would like to discuss your business cost management requirements, or any other business procurement needs, the team of experienced managers at BCR Associates are on hand to help ensure you get the most out of your available budget. Contact them today on 03330 433 233.


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