Inverclyde's care homes have expressed fears for their futures following Budget increases in minimum wage and national insurance contributions.

Local councillor David Wilson says he has been contacted by a number of owners who are concerned that the rises will have a negative impact on their businesses.

They claim that the changes announced last month by Labour will add an extra £85 a week to the cost of looking after each patient.

All 13 care homes in Inverclyde, including Gourock, Greenock and Port Glasgow, are privately owned, but take a large number of patients from the local authority.


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Mr Wilson, who is one of two Scottish Conservatives on Inverclyde Council, says care homes believe they should be exempted from the national insurance increases in the same way as the NHS.

He told the Tele that the homes he had spoken with had also asked not to be named, so as not to worry their residents or families.

Cllr Wilson added: "I have been approached about financial concerns with regard to the increases to minimum wage and employers National Insurance.

"There is real worry about the financial health of some of our care homes with the increased costs.

"We have a very good care home sector in Inverclyde and would not like to see that damaged.

Councillor David Wilson says he fears for the future of care homes set to be hit by rises in National Insurance and minimum wage levels.Councillor David Wilson says he fears for the future of care homes set to be hit by rises in National Insurance and minimum wage levels. (Image: George Munro) "There will come a point where most of us will need the services of a care home and we must protect their position.

"They do a wonderful job and most families in Inverclyde are touched by their professionalism and caring in looking after our loved ones."

The minimum wage for over 21s, known officially as the National Living Wage, will rise by 6.7 per cent, from £11.44 to £12.21, in April 2025.

Five per cent of that will be met by the Scottish Government.


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However Cllr Wilson says that care homes will still have to pay increases to longer serving or more senior staff staff to maintain their differentials.

The rate of employer National Insurance contributions will increase by 1.2 per cent to 15 per cent, also from April 2025.

Cllr Wilson added: "Darren Jones, the Chief Secretary to the Treasury, said that large businesses ' should suck it up.'

"Many of the care homes are small concerns and cannot afford the increases, and don't want to put up charges to compensate."

The councillor also called on local MP Martin McCluskey to challenge his Labour colleagues in the Treasury, including Chancellor of the Exchequer Rachel Reeves, over the increases.

Martin McCluskey MP defended Labour's Budget measures.Martin McCluskey MP defended Labour's Budget measures. (Image: George Munro)

He added:"Our MP has shown himself in the past to be a politician of principle.

"I think Mr McCluskey should go in and say this is not fair."

Mr McCluskey, who represents Inverclyde and Renfrewshire West, defended the minimum wage and national insurance changes.

He added: “The Labour budget in October delivered the largest increase in NHS and care services in a generation.

"Care homes across our area have been at the sharp end of a growing gap in the cost of their services and the funding they receive from local authorities. 

"This is the root cause of the crisis in social care and needs to be addressed by the Scottish Government. 

"The budget increase awarded to the Scottish Government gives them the ability to do that.


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“If Cllr Wilson wants to see increased funding for social care, he needs to tell people where the money is going to come from.

"His party opposed Labour’s budget and have set out no proposals of their own to fund public services.”