Raising taxes on wealth and assets could help pay for a pay rise for 78,000 care workers in the North West to at least £10 an hour, according to new research published by the TUC today.
This pay rise would benefit two in five social care workers in the region.
The union body says that increasing Capital Gains Tax – a tax paid on the sale of assets other than your main home – could raise up to £17bn a year and provide much a much-needed boost to care services in the North West and across the UK.
The TUC says that reforming Capital Gains Tax is a much fairer way to fund social care than hiking workers’ and businesses’ national insurance contributions.
The union body says that is “plain wrong” that under current tax arrangements a low-paid social care worker can pay a bigger share of their income to fund the social care system than the private equity magnate who profits from asset-stripping care homes to sell on.
The TUC says that urgent action is needed to tackle the staffing crisis in social care, which it describes as the “biggest challenge” facing the sector.
It highlights how, at any one time, the social care sector has approximately 122,000 vacancies with staff retention a huge issue.
The TUC says that endemic low pay and job insecurity are key reasons behind carers leaving the profession.
Analysis by the union body shows that seven out of ten care workers earn less than £10 per hour and that one in four (24 per cent) are employed on zero-hours contracts.
The TUC says the sector will continue to be plagued by staffing shortages unless ministers improve pay and conditions across the board.
TUC Regional Secretary Lynn Collins said:
“Our dedicated care workers have helped get us through this crisis. Now it is time we cared for them.
“Every care worker in the North West should be paid a wage they can live on. And that means at least £10 per hour.
“Any plan to fix social care funding must also fix pay for workers in the sector.
“And working people shouldn’t bear the burden of funding social care alone. The prime minister should be asking those who make a fortune from their property and assets to pay a fairer share of tax.
“It is plain wrong that the government’s social care plans will see a low-paid social care worker paying extra to fund the social care system while the private equity magnate who profits from asset-stripping care homes to sell on sees no change.
“It’s time to raise taxes on wealth to fund social care properly and guarantee decent pay for all social care workers.”
