Charities: National Minimum Wage

Lord Young of Cookham Excerpts

Thursday 29th February 2024 Lords Chamber

[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.

[Lord Young of Cookham (Con)]

My Lords, many early years providers are charities and voluntary organisations, including preschools and nurseries. Three-quarters of their costs are salaries, and many of their employees are on the national minimum wage. Since 2017 the national minimum wage has gone up by more than 50% but the funding rate from local authorities has gone up by 21%, undermining the viability of those organisations at the very time when entitlement to free childcare is going up. Will my noble friend the Minister make representations to the relevant department to see that the funding rates are increased, so that those organisations can continue to provide a quality service?