Budget 'worst I've seen', says care home boss

Raj Sehgal says the social care sector is like a "poor cousin that has been ignored"

A care home boss has claimed the autumn Budget is "one of the worst" he has ever seen.

Raj Sehgal, chief executive of Armscare, which operates five care homes in Norfolk, said policies announced by Chancellor Rachel Reeves could result in weekly fee increases of up to £80 per resident.

He said social care was like "the poor cousin that has been ignored", with workers underpaid and the sector underfunded.

A Government spokesperson said "tough decisions" had been taken to give the NHS and social care a £22bn boost.

Local authorities were given an extra £600m in funding for adult and children's social care.

The care sector will be hit by an increase in National Insurance and will have to fund increases to the National Minimum Wage and National Living Wage.

The measures could force some care homes to close, providers have warned.

Mr Sehgal said the implications from the Budget announcement were "absolutely horrendous" and would add costs of about £350,000 to his business annually.

"It's a circular movement of taxpayers' money," he said.

"We need it funded, which comes from Norfolk County Council. They need it funded, which is going to come from central government. So they tax us."

Mr Sehgal believes the social care sector and NHS need to "work in parallel"

He questioned whether local authorities would be able to fund the extra costs, and said fees for residents would have to increase.

His firm currently has 140 employees but needs more.

"Care workers are the lowest paid in society at the moment for the work that they do and the responsibility they have... that is certainly not enough," he said.

He believes social care and health services need to run in parallel and that, without funding social care, the NHS cannot be fixed.

"It's not just putting people into the sector... What's been portrayed by people at the Government is that care is a job that anyone can do and that's far from the truth," he said.

A Government spokesperson said: "The employer National Insurance rise doesn’t kick in until April, and we will set out further details on allocation of funding for next year in due course.”