Care workers have faced 33 per cent wage cuts as Con-Dem austerity cascades down through council budgets and into bargain-bin outsourced services.

Carers’ union GMB said yesterday that staff at Surrey provider Prospect Housing and London provider Choice Support had seen salaries reduced by up to £700 a month, working hours raised to as many as 50 and employer pension contributions axed.

Councils have a legal duty to look after elderly and disabled people, but GMB regional organiser Sheila Carlson said: “Because so many have outsourced these services, they can bully providers into further and further economies,” she said.

“In other words: Give us a low quote or you lose the contract.”

Surrey County Council employs Prospect Housing to care for vulnerable and dependent people in the community. But the council is reducing the contract price it pays to Prospect — which is passing it on to staff.

In the London Borough of Merton care provider Choice Support has had its contract price cut by £400,000 — some staff have left while others are top up wages with benefits.

pingThe scandal is being repeated across the country.

“Huge cuts have been made in central government funding to local councils,” said Ms Carlson. “With over 80 per cent of the cost of care being staff costs, it is easy to see where any cuts will fall.”

She added that, with demand increasing, the care sector is “in crisis.”

HM Revenue and Customs is facing calls for an investigation into the social care sector.