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ASHE (2000) 6115 2020: Care costs continue to rise

  • 6 November 2020 6 November 2020
  • UK & Europe

  • Insurance & Reinsurance

ASHE (2000) 6115 2020: Care costs continue to rise

The 2020 data for the equivalent ASHE (SOC 2000) 6115, wages of care workers, home carers and senior care workers has been published together with the revised 2019 data.  The data for ASHE (SOC 2000) 6115 can be found on the Office of National Statistics website https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/careworkerssocashetable26.  The ONS also provide a general Statistical Bulletin overview of all data collated in the survey.

ASHE 6115

The data released this year shows that carers' wages are at an all-time high and continuing to rise.

There has been an increase in the average (mean) of ASHE 6115 of 4.73%, and an increase in the median of 5.47%.  This is the greatest mean increase seen since 2016.

By comparison, there has been an increase in the average (mean) for all full time employees of 1.74%, meaning that carers' wages are rising well ahead of the average. 

Carers' wages are, however, increasing at a lower rate than the National Living Wage, which applies to employees aged 25 years and over, which increased by 6.21% to £8.72 on 1 April 2020.

Carers' earnings continue to increase above the rate of inflation: the retail prices index increased by 1.53% and the consumer prices index by 0.93% between April 2019 and  April 2020. 

The reason for the increase in carer wages could be, in part, due to the increase in National Living Wage from the previous year. The effect Brexit and the covid pandemic will have on earnings growth is currently unknown.

Application to ASHE Linked PPOs

For the percentiles most frequently encountered by Insurers in periodical payment orders to which they are a party, the new figures are as follows:-

 

2019 Provisional

2019 Revised

2020 Provisional

Percentage Change

2019 Revised - 2020 Provisional

90th centile

£13.84

£13.83

£14.27

↑3.18%

80th centile

£11.86

£11.87

£12.50

↑5.31%

75th centile

£11.25

£11.25

£11.86

↑5.42%

 

Should you require any further information, or assistance in calculating the periodical payments on, please do not hesitate to contact Heather Dale, Kate Mikolajewski or Jodie McAuley.

This article was authored by Kate Mikolajewski, Senior Associate, Jodie McAuley, Senior Associate and Heather Dale, Associate.

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