The costs and benefits of paying all the lowest-paid care home workers in the UK the Living Wage

Low pay in care homes is widespread and varies with gender, age, location and type of provider. This report examines the increase in costs if all care home workers were to be paid the Living Wage (LW). It also considers the rise in National Insurance and pension contributions that would follow such a wage increase. Meanwhile in-work benefits would fall, so lower-income families may not enjoy significant income gains from the LW. The government recently announced a new National Living Wage (NLW), along with proposed reductions to in-work benefits, and the report includes a timely assessment of how the costs of the NLW compare with those of the LW.

The report was a collaborative project between the Joseph Rowntree Foundation, ILC-UK and the Work Foundation. The report is hosted on the Joseph Rowntree Foundation’s website.

Authors: Hilary Ingham, Sally-Marie Bamford and Geraint Johnes

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