In a recent report released by the Future Social Care Coalition (FSCC), titled “Carenomics,” a compelling case is made for increased UK government investments in the social care sector. This report underscores a well-funded social care system’s pivotal role in powering economic growth. The report also sheds light on the significant impact of an underfunded and fragmented care sector. Which currently grapples with 152,000 job vacancies in the UK’s economy and labour market. Substantial investments in social care are imperative to achieve the government’s levelling-up agenda and transform the nation.
UK Government Investments: The Economic Imperative
The “Carenomics” report presents a robust economic argument for channelling more financial resources into the care sector. In 2021-22 alone, the care sector contributed a substantial £51.5 billion to the English economy. This figure highlights the sector’s economic significance and underscores its potential to become a powerful driver of UK economic growth. The report identifies care staff as vital contributors to the labour force and the economy, making a compelling case for urgent UK government investments to attract and retain workers in this often-overlooked sector, larger than the electricity, water, and waste management industries.
Unlocking Labor Potential
The “Carenomics” report highlights how increased social care investment has the potential to boost labour force participation rates significantly. By boosting investment and recruiting more care workers at better wages, the report suggests that many individuals aged 50-64, currently unable to work due to caring responsibilities, could rejoin the labour market. A mere 1% rise in employment among this demographic could add a substantial £5.7 billion annually to the UK’s GDP.
In conclusion, in the quest to resurrect the UK economy from the throes of recession, the Carenomics report makes an unequivocal case for substantial UK government investments in social care. A properly funded care system is key to economic growth and addresses critical labour market issues. Prioritizing social care in government tenders is morally imperative and strategically vital for a UK economy rebounds.
COMMENTS