Care providers 'shocked' by long-term funding

The Jersey Care Federation says it expected a costs rise of 10.9%, in line with inflation

Lower than expected increase in benefits for people in long-term care in Jersey could have a "catastrophic impact" on the care industry, a federation says.

The Minister for Health & Social Services, Deputy Karen Wilson, announced financial weekly benefits for people who needed long-term care would go up by 7.7% in 2024.

The Jersey Care Federation (JCF) said it had expected a rise of 10.9% - in line with RPI figures of inflation - and that it was "shocked" by the announcement.

The government said it was "disappointed" by the "negative reaction" from JCF.

Cheryl Kenealy, chairperson for the JCF, said "dozens" of care providers were saying the increase was forcing them to "make radical altercations" to business plans for 2024.

She said: "For some providers, this includes scrapping much-needed investment in recruitment to fill the huge skills gap the island currently has for carers, cutting investment in training and reducing the number of beds and packages on offer.

"We have a vested interest in order to provide good standards of care with a sustainable workforce, but, ultimately, it is vulnerable citizens who will suffer if this funding is mismanaged."

Ms Kenealy said providers were "too worried to cut staff wages" due to "ironically" struggling to compete with the rates the government pays care staff for similar roles.

"They have directly and significantly contributed to driving up the cost of care with their own resource strategy, and are now penalising the private sector for it," she said.

The JCF asked for a meeting with Deputy Wilson in-person to "seek a less damaging outcome".

'Care sector valued'

Deputy Wilson and Social Security Minister Elaine Millar said in a joint statement they had received "positive responses" to the 7.7% increase from the industry and they were "disappointed at this negative reaction" from the federation.

They said: "This contrasts with feedback which government has received from individual care providers, which has included positive responses to the uprate.

“The increase of 7.7% for 2024 fully reflects the rise in average earnings over the last year."

They said long-term care (LTC) costs were strongly driven by wage costs.

They added: “At the beginning of this year, there was an exceptional, one-off increase of 12%, which was well above the 2022 average earnings increase of 6.2%. Taken together, the latest increase represents a 20% increase in LTC funding in two years.

“LTC is paid for by all taxpayers. The headline contribution rate rose to 1.5% in 2020 to acknowledge the increasing number of people requiring care in the island.

"The minister for social security has already made a commitment in her 2024 plan to review the ongoing sustainability of the LTC fund itself.

“We continue to support and value the work of the care sector.”