Union bosses believe Derbyshire County Council could benefit from a £112m economic cash boost if the Government Treasury meets the costs of a £15 minimum wage for care workers.

New research published on 11 May by the Trades Union Congress provides a local breakdown of the financial benefit to the care workforce, and the wider economic benefits of raising wages to a minimum of £15 per hour across the social care sector.

The TUC claims the East Midlands would receive the strongest economic boost relative to population with an estimated £803m economic boost with Derbyshire County Council benefiting from a £112 economic boost.

TUC Regional Secretary Lee Baron 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 East Midlands 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 East Midlands.  

“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 East Midlands will get a boost. And that will support job creation and higher wages for other workers too.”

The TUC 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.

It believes a shortage of care workers has led to a surge in the number of people waiting for social care assessments and that millions of hours of commissioned home care are going unprovided.

The TUC feels a £15 minimum wage for care work would also help end what it calls the ‘recruitment and retention crisis’ and raise standards of care.

The social care workforce accounts for £52 billion of England’s economy, according to the TUC, and there are 1,790,000 posts in social care, but around 165,000 of these are vacant with the vacancy rate increasing to a record 10.7 per cent in 2021/22.

Low pay and job insecurity are the main cause of the ‘recruitment and retention crisis’, according to the TUC, with nine out of ten care workers earning less than £15 an hour and many being paid less than the real living wage of £10.90. Also, worryingly, is that 24 per cent of workers in the sector are employed on zero-hour contracts.

But the TUC‘s research finds that a £15 minimum wage across the social care sector would mean an annual full-time wage of at least £29,250 for care workers and pay rises for 541,700 care workers across England.

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 because the Treasury would benefit from higher tax returns and reduced in-work benefits payments, and from the economic impacts of the additional consumer spending.

Derbyshire Council’s Cabinet Member for Adult Care, Councillor Natalie Hoy, said: “Our care staff do an amazing job supporting people in Derbyshire to live fulfilled and dignified lives and we’re always looking at initiatives to encourage more people to join us and stay with us.

“Last year we introduced a £500 incentive payment for care staff who work in the community with an additional £500 if they stay with us for a year.

“We’ve also introduced a £100 recommend a friend payment as we know one of the best ways to encourage recruitment is by word of mouth.

“We would welcome more money for our hardworking and dedicated care staff and if anyone is interested in a rewarding career with us we offer excellent terms and conditions.”

The TUC is also calling for ministers to establish a Fair Pay Agreement. ensure good employment conditions, end zero-hour contracts, develop a new National Social Care Forum, launch a long-term, sustainable investment plan, and reduce private sector providers and move towards the insourcing of care services.

For more information about a care work career, Derbyshire County Council has invited those interested to visit www.derbyshire.gov.uk/makeadifference

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