As members at Alternative Futures Group (AFG) continue their strike action today, new figures reveal that AFG’s raid on staff incomes is wholly unnecessary.

AFG have cut back care support workers’ pay for sleep-in top-up payments.  This is costing some staff as much as £2,000 per year.  The care support workers are only paid at the level of the minimum wage for their regular hours and many are struggling to stay in the care sector due to not being paid adequately at night.  Staff have received great support for their strike action, with a public petition amassing some 13,000 signatures.

AFG receive funding from 15 public authority commissioners across the North West.  The amounts the commissioners pay toward the cost of employing staff to work sleep-in shifts vary, but all but two (Rochdale and Warrington) pay more than the £73.89 per shift that would cover the minimum wage rate for staff.   

However, AFG do not pay this money on to staff.  Instead they take a 29% cut for themselves before paying staff what is left.  This cut far exceeds the cost of non-wage employment costs such as National Insurance and pension contributions.   

AFG’s company accounts give an indication as to how the organisation is choosing to spend public money.  The organisation has high and rising overhead costs, that are forecast to go up by 20% over a two year period.  The accounts also show that AFG pays a higher percentage of its income to top managers than all of its competitors.  AFG’s executive pay policy cost it £221,000 more this year than if it had matched the industry average, and £547,000 more than if it had chosen to match Mencap’s practice on senior management pay.      

Other care providers, with similar commissioning arrangements, do pay the minimum wage for sleep-ins, and this is the expected practice of both local and central government.    

Paula Barker, UNISON North West Regional Convenor said:

“AFG are taking an enormous cut out of the public money that is intended for the pay packets of low-wage care staff.

“They are spending a growing amount on company overheads and they choose to pay their executives more than their competitors do.  They have the wrong priorities and they should instead be investing in their front line care staff and in the service. 

“AFG can’t have it both ways – they can’t raid this money for executive pay and overheads and then say that they can’t pay care workers the minimum wage because other income is ring-fenced.   

“There are councils in the North West who should be paying more to ensure that staff receive at least the minimum wage for working sleep-ins.  UNISON has written to Rochdale and Warrington councils to express our concern that they are paying too little.  But overall we reject AFG’s assertion that they cannot afford fair pay in the North West.    

“We would love AFG to join our Dignity in Social Care Campaign to help argue for fair funding, decent jobs and quality services. But first AFG must do the right thing and reverse these damaging pay cuts.”

Notes on the data 

(1) Commissioner sleep-in funding to AFG and sleep-in shift pay levels for care staff, 2019

(2) Governance and support costs were £7.5million in 2016/17 and are forecast to reach £9million in 2018/19 – a 20% increase in two years.

(3) Total Earnings of key management personnel as a proportion of income, 2017/18

AFG Income 2017/18: £58,328,000

If AFG paid senior management personnel the industry average (1.02% of annual income), it would save them £221,000 a year.

If they paid senior managers in the same way as Mencap does (0.46% of annual income), it would save them £547,000 a year.