Care leaders call for bridging fund to mitigate NICs rise impact

Care leaders have called for the creation of a ‘bridging’ fund to mitigate the impact of the rise in National Insurance Contributions (NICs) announced in the Autumn Budget.

(c) Anthony/Unsplash

(c) Anthony/Unsplash

The call came in an open letter to the chancellor from the National Care Forum and leading not-for-profit care home operator Methodist Homes (MHA).

The letter cited Nuffield Trust research showing the NICs and the National Minimum Wage rises will cost England's 18,000 social care providers £2.8bn, well above the £880m allocated in the local government finance settlement.

To offset this impact, MHA proposed the creation of a ‘bridging' fund to help social care providers prepare for the fair pay agreement for care workers.

The letter said this fund should be ‘at least equivalent' to the sector's losses from the changes to NICs, which come into effect on 6 April.

The leaders suggested the bridging fund could be administered direct to care providers or via local authorities as ‘ring-fenced' funding, based on numbers of employees at each care provider.

They stated: ‘Without this bridging fund, the sector risks contracting, jeopardising care and support for millions of people, and moving further away from its ability to deliver on the fair pay ambition.

‘On behalf of the people with learning disabilities, autistic people and older people our members support, and the millions of others supported by the wider sector, we sincerely hope you will implement this much needed emergency measure ahead of 6 April.'

A Government spokesperson said: ‘We support our charities through one of the world's most generous tax regimes for the sector which provided £6bn in relief for the sector last year alone, including exemptions from paying business rates. The difficult but necessary decisions made at the Budget have already delivered an NHS with falling waiting lists and a £3.7bn rescue package for social care.

‘This comes on top of doubling the Employment Allowance to protect the smallest charities while creating a new Civil Society Covenant to usher in a new era of trust and partnership to tackle some of the country's biggest challenges.'

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