Debbie Price said the rise in the living wage would take her company's wage bill to about £1mCare homes are warning more could go out of business because of staffing shortage and rising wage bills.
Debbie Price, the chief executive of the Coverage Care group of care homes, said the rise in living wage from April would add extra pressure.Ms Price added: "I understand that they have financial constraints, but there are very few businesses that don't get paid the amount if costs to provide the service."They have also seen a 19% staff turnover rate.
The rise in the living wage is set to push up basic pay from £10.42 an hour to £11.44 and Ms Price said it would push her wage bill up to about £1m.Mr Parsons, a member of the Labour opposition on the Conservative-run Shropshire Council, said care homes "are not receiving the amount of cash that they need from Shropshire council to pay for those service and cover their costs".