Council defends itself after care home owner ‘worth £28m’ criticises them over level of fees paid

A council has defended the fees it pays out to providers after a multi-millionaire social care champion said it had “slapped” workers in the face.

Mario Kreft, chair of Care Forum Wales, accused Denbighshire council of adding “insult to injury” by paying its own employees up to £2,200 more a year than care staff working for private companies.

Care Forum Wales maintains pay rates for carers are effectively determined by local councils who set the level of fees they will pay care homes and domiciliary care companies.

Mr Kreft claimed the formula used by Denbighshire council meant private care homes were only allocated enough money to pay half their staff £8.72 an hour, going up to £8.91 next year, while the other half are on a slightly higher rate of £10.21.

He also said recent job adverts for council employed care staff offered rates of £9.62 an hour and £10.01, for workers with no experience.

Mr Kreft said: “Five of the bottom 10 payers in Wales are North Wales councils whilst the highest rates are to be found in south-east Wales.
“Care homes in somewhere like Dinas Powys receive £7,392 a-year per resident (more) than a home in Denbigh – for a home with 40 residents that’s a massive £295,000 a year.
“Why are residents in Llandaff worth more than people in Llangollen? It’s just not fair.
“The new rates in Denbighshire do not recognise the extra costs piled on the social care sector as a result of the pandemic.
“Instead of clapping for carers Denbighshire council is slapping them in the face, condemning them to live on low wages, which is an absolute scandal.”

He said new rates announced by the authority for private care providers were a “kick in the teeth to the army of courageous care workers” who looked after residents during the pandemic.

A spokesman for Denbighshire County Council said pay and conditions for staff working in the social care sector was a “national” issue.

He said work was ongoing through the Social Care Forum, with input from Denbighshire council’s social services director, to try and address the problem.

The spokesman said: “Denbighshire council appreciates the work of independent sector care home providers and their staff and this has been heightened by their work undertaken throughout the pandemic.

“The council takes a number of factors into account in determining what it pays providers, including the need to keep other essential services operating effectively, while taking account of the financial settlement from Welsh Government and the level of council tax.”

He said care staff working for Denbighshire had not received a rise this year but it had committed to paying them 2019’s Real Living Wage of £9.30 per hour this year.

He claimed the rise of the National Living Wage of 2.2% (to £8.72 per hour for over 25 year olds), compared to no uplift for local authority employees, brought the pay gap closer.

There was currently “no provision in the budget to take this further in the current climate” he said.

The spokesman added: “Every year a Regional Fees Group, which includes a representative from Care Forum Wales, reviews the fee setting methodology, taking account of inflation and other increases in costs.
“It is then up to each individual local authority, as well as the local health board, to consider the results in setting their fees.
“Denbighshire provided an above-inflation fee increase for 2021-22, which ranges from 3.52% to 3.75% depending on the type of care home.
“This is in line with other authorities across North Wales, although actual fees vary according to demand and complexity of need.”

Mr Kreft added: “To add insult to injury (Denbighshire council is) saying it has worked with providers and Care Forum Wales in developing the fees. Nothing could be further from the truth.

“We cannot just stand by and accept a local authority with a budget of hundreds of millions of pounds and a statutory responsibility for social care can apply dual standards – for those who work for the council and those who don’t.

“When we published our Cheapskate Awards last year, Denbighshire were very unhappy but I make no apology for bringing this important issue, this injustice, to the attention of the public when others would seek to hide it.

“Quite frankly the public need to know and councils need to stop blaming providers for poor terms and conditions when they themselves set the financial rules. It’s sheer, unashamed hypocrisy.”

Mr Kreft and his wife Gill own Pendine Park Care which operates various homes in Wrexham and Caernarfon, with more than 400 residents in total.

He said Denbighshire council was being “totally disingenuous” because it ignored requests to pay staff at least the Real Living Wage of £9.50 an hour.

Pendine Park committed to paying its staff at least the National Living Wage of £8.21 per hour last year, according to the company’s accounts.

By Jez Hemming – Local Democracy Reporter

(Mr Kreft was listed as £28m of net worth along with his wife in a 2019 rich list)