The Right Honourable George Osborne MP Chancellor of the Exchequer 11 Downing Street London SW1A 2AA 9Th July 2015 Dear Chancell

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The Right Honourable George Osborne MP Chancellor of the Exchequer 11 Downing Street London SW1A 2AA 9th July 2015 Dear Chancellor I am writing to express my support for your decision to develop a national living wage, but also to warn you of some of the unintended consequences this might have for the care sector and the NHS. Care providers are receiving totally inadequate levels of funding from local authorities, in some areas this amounts to as little as £2.80 per hour, for residential care to some of the most vulnerable older people. In recent years, the sector has received either below inflation rate increases, or no increase at all, and it is not possible to deliver much more, unless we have a proper funding settlement from the local authorities. Your recent announcement of wage increases came on top of auto-enrolment and increases in regulatory fees, all of which have put enormous burdens on the care sector. If we are not properly funded we will see a reduction in care providers and this will have a significant impact on the NHS, and the money that you have promised them, will not be adequate to meet the demand. We understand that you are committed to deficit reduction, and as businesses we applaud this. However, we do not believe that in ignoring social care, whilst protecting health, you are getting the best value for the taxpayers money. I would be happy to meet with you to brief you on these issues. Yours sincerely Professor Martin Green OBE Chief Executive 40 Artillery Lane | London E1 7LS | 08450 577 677 www.careengland.org.uk Registered in England No. 2082270 Registered Charity No. 296103 .

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