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Highlands care provider Parklands to see costs rise by £80,000-a-month due to National Insurance hike





Ron Taylor, managing director of Parklands Care Homes.
Ron Taylor, managing director of Parklands Care Homes.

A Grantown-based care provider will see its costs rise by £80,000-a-month due to the increase in employer’s National Insurance contributions.

Parklands Care Homes is set to open its 58-care-bed home in Milton of Leys in May this year — providing much-needed support after 200 care beds have been lost in the Highlands over the past 12 months.

Original plans for the care home — which will be called Pittyvaich — began in 2018, however, work did not begin until 2021 due to covid.

The costs were first estimated to be around £8 million for the build but this has increased to over £11 million with inflation and construction costs rising.

The new home has spectacular views over the Moray Firth and is embedded firmly in the community, next to Milton of Leys nursery to provide intergenerational friendships.

Donald Morrison, director of communications at Parklands Care Homes said: “We have lost over 200 care beds in the Highlands, so this investment is important and timely.

“We have four care homes in the Highlands at the moment, with over 20 people on the waiting list for each of them.”

Donald Morrison and Ron Taylor.
Donald Morrison and Ron Taylor.

The lack of care facilities in the Highlands also coincides with staffing shortages, with Parklands Care Homes taking matters into their own hands for the new Inverness facility.

Ron Taylor, managing director of Parklands Care Homes said: “We are building 24 two-bedroom apartments for staff due to the huge issue of accommodation at the moment.

“The affordable homes that we build, will be rented out for care services providers and ring-fenced for this.

“Brexit has definitely had an impact on staffing and at our Moray homes we have good long-term staff. Our homes in the Highlands are newer.”

The UK Budget, which was announced by Chancellor of the Exchequer Rachel Reeves in October has had a “huge impact”.

The care home is set to open in May.
The care home is set to open in May.

Mr Morrison said: “We are seeing our costs rise by £960,000 per year, so we have to find an additional £80,000 month which we didn’t foresee.

“We are borrowing from reserves and adding additional rooms where we can, which will help generate more income to get over the initial hit from the budget.”

This National Insurance hit, will see fees rise across the care service sector according to Mr Morrison.

A survey carried out by Scottish Care, the umbrella body of the sector, showed that 48 per cent of care providers in Scotland are now in fear of closure after the budget.

The site in Milton of Leys will also have 11 assisted living apartments, which will be sold to older people who are relatively independent but need some support and call on services from the care home.

The 58 bedroom care home is set to open in May.
The 58 bedroom care home is set to open in May.

The construction of the site is being undertaken by Inverness-based firm, Capstone Construction.

Recruitment for the care home is beginning and is set to provide 120 jobs.


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