A £15 MINIMUM wage for Halton care workers would boost the economy by over £10 Million.
New research published by the TUC has revealed that increasing the minimum wage to £15 for care workers in Warrington would bring £14 million to the national economy.
This increase would result in £11 million more going to Warrington care workers each year, with the reinvestment into the economy seeing a £3 million profit from the change.
This data is part of a wider study by the TUC which demonstrates that a £15 minimum wage for care workers would boost the the North West’s economy by over £1 billion.
Across the country, low pay and job insecurity has led to a crisis in both recruiting and retaining care workers.
The union body is calling for the cost to be met by the Treasury, rather than local authorities that remain cash-strapped following cuts since 2010 to the overall funding they receive from central government.
This is because, in doing so, the net cost would be substantially lower than the £5.9 billion upfront requirement to bring pay up to £15 per hour for all care workers.
In raising the minimum wage for care workers to £15 per hour, the Treasury would benefit from higher tax returns and reduced in-work benefits payments, as well as the economic impacts of the additional consumer spending.
Currently, nine in ten care workers earn below the called for rate of £15 an hour, with 24% on zero hour contracts.
James McKenna, Regional Secretary for the TUC said:
“Most families need social care services at some point. And we all want to know our loved ones will receive a high standard of care. But that’s only possible if social care jobs in the North West are paid well enough to attract and retain the right people.
“We’re calling for a £15 per hour minimum wage across the adult social care sector. This will reduce staff turnover and help fill the thousands of vacancies in care services in the North West.
“There’s another upside. Our research shows that raising social care wages to £15 per hour will have wider economic benefits where care workers live and work. When they spend their higher wages, local businesses in the North West will get a boost. And that will support job creation and higher wages for other workers too.”
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