MP Suggests Gambling Tax to Fund Social Care Pay Raises
A Member of Parliament has called for an increase in gambling taxes to help fund better wages for social care workers.
LISTEN TO THIS ARTICLE:Richard Foord, who represents Honiton and Sidmouth, in the South West of England, brought attention to the increasing pressures on Devon’s social care system during a debate on employment terms and conditions.
Foord warned of a “burgeoning crisis” in the sector, attributing the growing strain to more than a decade of funding cuts under the previous Conservative government. These cuts, he argued, have pushed Devon County Council into a precarious financial situation.
The Liberal Democrat politician explained that the turnover rate for social care staff in Devon is 27%, which is both above the national average and roughly double that of other industries, which is why he is calling for a separate, higher minimum wage for social care to come from his proposed new gambling tax rise.
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Low Wages and Tough Working Conditions
He added that 16% of care staff listed low wages as the main reason they left their jobs. Additionally, Foord said that care workers in rural parts of Devon often travel long distances between clients, which in some cases results in earnings below the national minimum wage once travel time is factored in.
Foord also drew attention to a growing shortage of care home beds across Devon. He referenced projections from Devon County Council indicating that by 2027, the county could be short by 270 care home beds for elderly residents with complex needs. The situation, he warned, is expected to worsen in the years ahead.
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Raising Gambling Taxes to Increase Funding
To help address these issues, Foord proposed a targeted increase in gambling taxes, not unlike the discussed tax hike in Sweden. He cited data from Skills for Care, which found that increasing the hourly wage by £1 to £2 above the national minimum for care workers could result in savings of up to £947 million, largely through fewer hospital admissions. However, to do so would require funding, which he believes should come from the gambling industry.
I suggest that the remaining funding comes from an additional tax on the gambling industry, which, according to Public Health England, costs the UK economy about £1.4 billion annually due to the financial, physical and mental impacts of problem gambling and the resulting crime and loss of productivity. We must go further and pay our social care staff more, recognising their vital role in looking after the elderly and vulnerable.
Foord also criticized the Chancellor’s recent Spring Statement, calling it a “missed opportunity” for residents in Honiton and Sidmouth.
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