Charities: National Minimum Wage

Lord Faulkner of Worcester Excerpts

Thursday 29th February 2024 Lords Chamber

Asked by

[Lord Faulkner of Worcester]

To ask His Majesty’s Government what steps they are taking to support charities which might struggle to pay salaries following the planned rise in the national minimum wage in April 2024, particularly those which provide support for adults with serious learning disabilities, and their families and carers.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, charities are vital to the delivery of social care services and to the support of families and carers across the country. His Majesty’s Government have made available an additional £8.6 billion in this financial year and next to support local authorities on adult social care and discharge. In addition, DCMS has awarded £76 million to charities and community organisations delivering front-line services, with a further £25 million to follow.

[Lord Faulkner of Worcester (Lab)]

My Lords, I am grateful to the Minister for that Answer. I declare an interest as patron of the Myriad Centre, a small and very successful charity providing adults with profound and multiple learning difficulties, and their carers and families, with support and a programme of activities in Herefordshire, Worcestershire and the West Midlands. It is heavily reliant on local authority support. It does not oppose the increase in the national minimum wage, of course, but if the minimum wage is increased by 9.8% and the contribution from Worcestershire is going to rise by only around 6%, there is going to be a shortfall that will widen year on year. This is one example. Will the Minister look at the problems of charities in that sort of situation—I have had correspondence from Mencap, which makes the same point—and see whether these gaps can be filled in some way?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord rightly points to the 9.8% increase to the national living wage, a record cash increase of £1.02 an hour from 1 April, which will give a pay rise to around 3 million workers. He is also right to talk about the implications for organisations such as charities. As I mentioned in my first Answer, the Government have made available up to £8.6 billion to support local authorities with adult social care and discharge in the next financial year. That includes £500 million announced last month to support local authorities with the cost of social care. In addition, the accelerating reform fund for adult social care will invest £42.6 million for local projects focused on transforming the care sector. We are providing support to those who are providing important care to vulnerable people in our community.