7. Statement by the Deputy Minister for Social Services: Social Care Fair Work and Real Living Wage

Part of the debate – in the Senedd at 5:10 pm on 29 June 2021.

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Photo of Julie Morgan Julie Morgan Labour 5:10, 29 June 2021

However, it is a complex sector, and we know that long-lasting change will need to be approached with a steady hand, and must be based on careful consideration. We will need to take a phased approach to implementing this commitment, which means that not all workers will receive the real living wage at the same time. This is because we recognise that employers and commissioners will need time to adjust to changes. We want to ensure that they are never rolled back.

This is a sector where there are hundreds of employers and tens of thousands of workers. The vast majority—about 85 per cent of services—are in the independent sector. A large number of independent sector providers are running just one or two small homes or services, and they are the employer. This means that pay, terms and conditions are variable across the sector. Rates of pay for care workers differ from service to service and across local authorities. We understand that a small number of employers are already paying the real living wage. Most, however, do not.

Even though we are investing public money, there are challenges in mandating employers to go further than the statutory minimum set by the UK Government. We will need to work through the commissioning arrangements to make this happen. We need to take advantage of the strong working arrangements that we have between providers and commissioners.

This commitment will help support recruitment, but it is important that, in implementing the commitment, we don't create new challenges for providers. That's why engagement with all parts of the sector, through social partnership, is so important. This illustrates the complexity of the issues that we need to work through.

I will be asking to attend a meeting of the forum in July, when I'll be asking the forum members to make recommendations to me about the best approach to ensuring that care workers in Wales enjoy fairer pay by 2024. I will be asking the forum to engage with the sector as it undertakes that work. I recognise that this commitment will have an impact on parts of the sector not directly represented at the forum, and so we will also ensure that engagement on this commitment is wider than forum membership. When I meet the forum in July, I'll be asking them to consider which part of the sector should be our starting point. I'll be asking the forum to report back to us, following which I will make a further statement on our plans for implementing this commitment.

We are committed to making social care a long-term career choice, where workers consider they are properly rewarded and supported. This is vital if we are to strengthen the workforce. Strengthening the workforce will underpin the development of social care services. It will ensure the sector can meet the changing needs of our communities. This is the foundation on which services will be become stronger. This is about delivering a fairer, stronger Wales.