VAT Increase and Home Care

The dreaded increase in the rate of VAT came into force today and many of us will be wondering if the new prices of goods truely reflects  the increase or if retailers and service providers  are taking the opportunity to hike their prices as well.

Homecare  thankfully is exempt from VAT and therefore there will be no immediate "hiking" of prices for our services.   This will be good news to many elderly people on restricted incomes who depend on social care services to continue to live at home independently. 

Unfortunately Homecare providers are not exempt from paying for VAT and buying in goods to provide the service (for example protective aprons and gloves for personal care) are going to be subject to VAT which will increase our running costs.  Another big cost to us is paying for mileage to carers who use their cars to reach clients.  Eventually these costs will have to be reflected in increased charges for services and therefore clients, often very vulnerable elderly people will be paying for the VAT increases indirectly in due course. 

Mike Padgham , the Chair of the United Kingdom Homecare Association (UKHCA) , the professional association of domiciliary care providers, said today:  "It is fortunate that the homecare sector's VAT exemption will protect people purchasing its services.  However, todays tax increase signals the need for Government to consider applying zero-rating to our services, to protect the public from indirect increases in the cost of care".

At SureCare we would like to add our voice to the UKHCA and call for the government to zero rate domiciliary care provision to support its commitment to help the elderly to remain at home and live independently.