On 26 October 2021 the Office for National Statistics released the latest data from the Annual Survey of Hours and Earnings (ASHE). These are provisional figures based on estimates of income from a 1% sample of workers’ HMRC records for the tax year ending 5 April 2021, and they will be revised and updated in due course as the data is finalised. The provisional data provides a steer on how the earnings across all industries are changing. Those dealing with catastrophic injury claims will be particularly interested in the data relating to care workers as the rates are directly applicable to the recalculation of existing periodical payment orders.
The latest data shows an average increase in care rates across the 60th-90th percentile of 2.6%. Practitioners will be aware that the hourly rates actually compensated within a catastrophic injury claim are typically significantly higher than those quoted in ASHE, given that ASHE covers all care workers (most of whom are state funded) whereas a catastrophic injury claim is typically compensated on the basis of a private care package which can be twice the hourly rates quoted within ASHE. That being said, the rates might offer an indication of trends in care costs generally.
Continue reading “Care rates continue to increase, but by how much?”