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Charities 'may be bankrupted' by huge bill for night carers

It’s only a few days now until October 2nd when companies will have to stump up £400 million in back pay to meet new huge new HMRC tax requirements as a result of the minimum wage.

The Charity Mencap says its facing the greatest challenge in its history as a result.

It warns some not-for-profit organisations and charities in the sector will go under as they simply don’t have the reserves to pay the amount owed.

Some disabled individuals with personal carers are also affected and facing debt.

It’s all the result of a tribunal employment ruling about night time carers’ pay which has had huge implications for everyone who needs night-time care. The cost of it has doubled – and there’s back pay to boot – leaving many providers cash strapped and even in fear of bankruptcy.

The total bill could top £400 million.

Some charities could be forced to fold by a huge back-pay bill for carers, says Mencap. Credit: PA

Charities are using the last few days before the payment deadline to bring pressure on the Government for a stay of execution.

They warn that the future of community care for people with disabilities is at risk.

The Government is likely to come up with a compromise solution, this being a problem they didn’t foresee - “an unintended consequence” as one minister has called it.

But even if they do, the financial pressures within adult social care continue to intensify.

It seems that now we have finally become enlightened about how we should treat the most vulnerable amongst us, we are struggling to find the funds to do it.