Keoghs Insight

Author

Emma Spencer

Emma Spencer

Partner

T:01204 678807

ASHE update released

Client Alerts26/10/2021

The Annual Survey of Hours and Earnings (ASHE) has today been published by the ONS.  This is of course only a day after the Chancellor announced a 6.6% increase to the minimum wage from April 2022 which will certainly have an impact on the care rates being charged next year.

2020 saw the highest % increase over the 60th – 90th centiles for 13 years at 4.98%.  In contrast, 2021 sees an average rise of 2.61% across the same centiles, the lowest % increase since 2015.  

This will be something of a surprise to those dealing with care claims given the rates now being quoted by agencies across the board as a result of a shortage of available workers. It may be that this year’s ONS survey does not yet fully reflect the turbulence seen in the care industry over the last 18 months or so – the ONS publication contains various health warnings about the data supplied within the pandemic - but there are doubtless other factors at play here. It is also noteworthy that the NJC (National Joint Council) recently rejected a proposal of a 1.75% increase to spinal point 2 (backdated to April 2021) and are proposing industrial action. Today’s publication, coupled with the current rate of RPI and CPI, will bolster their cause.

Our updated Periodical Payment Calculator will be published for clients shortly.