Nursing Homes in Ireland at Risk of Closure as Carer Pay Hike Poses Financial Strain, Warns Nursing Homes Ireland
Dublin: Nursing Homes Ireland (NHI) has issued a stark warning that nursing homes may be forced to shut down due to the financial strain imposed by new work permits requiring higher minimum wages for foreign workers. The revised work permits, which raise the minimum wage for foreign staff, are anticipated to significantly escalate operational expenses for nursing homes. In a letter addressed to the government, NHI expressed concerns about the sustainability of nursing homes under these conditions.
A recent report by the Health Information and Quality Authority (HIQWA) highlighted a distressing trend, revealing that the number of closed nursing homes in the country has more than doubled over the past four years. The situation has been exacerbated by government actions that substantially increased the financial burden on care institutions.
To address staff shortages, the government expanded the work permit scheme in December, raising the salary cap to include social and disability benefits. Starting in January, the minimum salary for healthcare assistants and home carers was elevated to €30,000, with plans to increase it to €39,000 by January 2026.
Expressing deep concern in an open letter to Minister of State Neale Richmond, NHI CEO Tadhg Daly emphasised that most institutions would struggle to absorb such cost increases. The current government stance on this matter is deemed troubling by the NHI.
Given that nursing homes heavily rely on support scheme funding for survival, Daly noted that approximately 60% of their costs are attributed to staff salaries. Many nursing homes and groups have already informed employees of impending salary increases in response to the government’s decision, with some slated to implement the changes by January 25.
To address the looming crisis, NHI has urged Minister of State Neale Richmond to consider increasing the Fair Deal State Subsidy Scheme grant and providing additional financial assistance to nursing homes. This, they argue, is essential to safeguarding the continued operation of these crucial care institutions.
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