£1m extra for Peterborough adult care providers due to minimum wage increase
An extra £1 million for providers of adult social care in Peterborough has been approved.
The city council has agreed the additional funding to prevent organisations from running into financial difficulty.
A report outlining the extra annual £1.03 million spend states that an increase in the National Living Wage means “providers will now struggle to absorb the latest increase and this will impact on their commercial viability”.
The council said “efficiencies” in the sector had previously helped manage inflationary costs.
It added that consultation has taken place with care and support providers and that a failure to act would be detrimental to the standards of care in Peterborough.
In April, care providers in Peterborough and Cambridgeshire were given a 10 per increase in their funding due to costs related to the coronavirus pandemic.
The minimum wage is to increase to £8.91 from April.