FINANCE

Pay rises to swallow extra £650m for care

Councils hoping that the Chancellor’s Budget promised extra £650m for social care might ease some of the financial pain in the sector will be set in for an unpleasant surprise.

Councils hoping that the Chancellor's Budget promised extra £650m for social care might ease some of the financial pain in the sector will be set for an unpleasant surprise.

The reality is that most of the cash promised by Philip Hammond will be needed to simply cover the 4.8% rise in the National Living Wage (NLW), which he also promised in the Budget, and which will cost an extra £530m a year.

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