A council is calling on the government to exempt care firms from a hike in National Insurance, saying it will lead to cuts to social care.
East Sussex County Council and East Sussex Partners in Care (ESPiC), an alliance of care providers, are asking supporters to sign a national petition and an open letter calling on the government to make the exemption.
The letter asks chancellor Rachel Reeves to either review the rise in employers’ contributions or give more money to councils to pay for it.
The county council and care providers warn the rise would have a severe impact on the ability to provide the best possible care to those in most need, including people with profound physical or learning disability, mental impairment or who are frail and elderly.
Mike Derrick, chair of ESPiC, said: “The care sector is already under the most intense pressure we’ve ever known. Costs are rising steeply, including from increases in the National Living Wage, and we calculate the increase in National Insurance contributions would slice up to another £2.8 million off what we’re able to invest in care facilities and the people we look after.
“We’re proud of the quality care our members provide but I can’t see how we could maintain those standards if we have to add another eight per cent to our costs. But that is what the government’s new increase would mean for us. We urge the chancellor to think again.”
Carl Maynard, cabinet member for Adult Social Care, said: “We arrange care for 8,000 people in East Sussex, most of it with independent providers who will be hit very hard by this increase. It’s inevitable that they will have to pass on some of this cost increase to what they charge us, and therefore on to the taxpayer locally.
“The county council is already facing an almost impossible financial challenge – with a funding gap of £57 million next year. We’re already having to consult the public about significant possible savings to adult social care services and the situation will only get worse if the rise in NICs forces care providers to raise their charges further.
“The government has tried to help the care sector with extra funding announced in the Budget, probably amounting to about £6.8 million for us in East Sussex. But the fact is that extra will be more than wiped out by this increase.
“It’s not too late for the government to change course. I would ask everyone to consider signing the petition and the open letter to the Chancellor which asks her to think again.”
The national petition can be signed online at https://petition.parliament.uk/petitions/700080
The letter to Rachel Reeves can be signed online at www.providersunite.co.uk/letter-to-chancellor/
