The office of Minister for Aged Care, Anika Wells, has responded to today’s story in The Weekly SOURCE after she told consumers: “Everyone’s HCPs will increase by 11.9% to cover the cost of the wages increases for aged care workers as well as other increases in prices.”
The Fair Work Commission ruled all workers under the Aged Care Award will be paid an extra 15% on 1 July, which the Federal Government has been forced to honour, after initially stating the 15% extra would be paid in stages.
The Minister came under fire with home care providers saying they have been blindsided by her letter to consumers explaining that the funding for Home Care Packages (HCP) will increase by 11.9% from 1 July 2023 to cover the cost of the Fair Work Commission’s 15% wage rise – 3.1% less than the increase.
However, the Minister maintains the 11.9% increase will cover the full 15% increase.
“Home care packages fund more than the support provided by aged care workers affected by the FWC wage increase. For example, home care packages provide funding to goods and equipment, which are not impacted by the award wage increase,” said a statement from her office.
“The subsidy increase of 11.9% has been calculated based on what providers spent in 2021-22. It is sufficient for the package to fund the 15% award wage increase, and to fund cost increases in other services not affected by the FWC.
“Some care recipients whose packages are fully expensed on nursing and personal care each month may have a small shortfall. In response, a grant opportunity will be available for providers later in 2023 to cover any additional costs for the small number of care recipients whose Level 4 packages may be fully expensed each month on nursing and personal care.”
The Minister for Aged Care also dismissed concerns that providers would not benefit from the promised 5.7% increase in indexation too.
“The 2023 indexation of home care packages is made up of the standard cost indexation plus an increase for the impact of the FWC on the in scope wages. The standard indexation was 3.3% and the FWC increase 8.3% of the total cost base (15% of the in scope wages). This method used to increase package amounts was to increase rates by 3.3% and then increase that amount by 8.3% (3.3% increased by 8.3% is 11.9 %).”
The additional funding will be applied through an 11.9% increase to the home care subsidy and some supplements.
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