Carers should be paid a higher minimum wage and made permanently eligible for work visas under immigration rules to help tackle staff shortages, according to a report by the Migration Advisory Committee (MAC). 

The committee, which briefs ministers on immigration policy, urged the government to adopt suggestions “as soon as possible” to “alleviate the challenges facing the social care sector”.

However, immigration “cannot be a silver bullet” to solve “fundamental” problems in the industry, such as “increased demand for care, high vacancy rates and poor terms and conditions of employment compared to competing occupations”, the report warned.

In February, the government relaxed immigration rules so providers could recruit care workers from overseas to fill vacancies, despite some charities at the time warning that the change would have “little or no effect” on staff shortages as most UK employers do not pay enough for them to qualify for the scheme.

The MAC’s report said “persistent underfunding of the care sector by successive governments underlies almost all the workforce problems in social care. Higher pay is a prerequisite to attract and retain social care workers.”

Among 19 recommendations made as part of its findings of the review into the effect that ending the freedom of movement had on the adult social care industry, the MAC said the government should immediately introduce a “fully funded” minimum rate of pay for care workers in England that is above the National Living Wage (of £9.50), starting at £10.50 per hour. Care workers should be made permanently eligible for the Health and Care Worker visa and keep on the Shortage Occupation List (SOL) – designed to help migrants get work visas to fill jobs where there are shortages – until it is next reviewed and additional taxes – like settlement fees and immigration skills charges – placed on such workers should be “scrapped or substantially lowered”.

MAC chairman Brian Bell said: “We urge the Government to put our recommendations in place as soon as possible – beginning with the introduction of a minimum rate of pay for care workers in England, removing the immigration skills charge and for the occupation to continue to be placed on the Shortage Occupation List for the foreseeable future.”

Vic Rayner OBE, chief executive of National Care Forum (NCF) and member of the social care expert advisory supporting the MAC with this work said that the report reiterates some very important issues affecting the social care sector which her organisation has been raising for many months: “The issues of underfunding and how this continues to exacerbate challenges to providers runs through the entire report, including the effects of increased demand for care, high staff vacancy and turnover rates and the impact of low pay and the care workforce challenges.

“The report identifies funding and immigration policy as possible solutions to alleviate some of these issues and recommends a broader strategic and whole system approach.” She continued that the report recommends that, while a focus on the minimum pay for care workers in this report is a helpful contribution to this issue, the NCF has consistently called for an independent pay review for social care, which involves employers, commissioners, and employee representatives intending to implement a new career-based pay and reward structure which is comparable with the NHS and equivalent sectors and fully-funded by the central government.

“Furthermore, we fully support MAC’s endorsement of the views expressed by the Health and Social Care Committee for DHSC to produce a “People Plan” for social care in alignment with the NHS and echo their recommendation that DHSC, and the comparable bodies in the Devolved Administrations, develop a coherent workforce plan in consultation with the sector for a coherent workforce strategy between health and care. The fact that the Health & Care Bill has been passed today with no requirement for the government to deliver joint workforce planning or both health and social care is a missed opportunity. 

“The findings of this report provide further evidence of the need for the government to act on the recommendations as a matter of urgency.”