Lib Dems call for social care NICs exemption in Spring Statement

Chancellor Rachel Reeves has been urged to exempt social care from a hike in National Insurance Contributions (NICs) in the Spring Statement.

Helen Morgan (c) UK Parliament

Helen Morgan (c) UK Parliament

The Lib Dems said the chancellor should use the opportunity on 26 March to abandon the ‘jobs tax bombshell' which they say will cost health and care providers £15.7bn over the next five years.

Liberal Democrat health and social care spokesperson, Helen Morgan, said: ‘Rachel Reeves must announce this at the Spring Statement in just a few weeks or risk care providers and those who rely on them being thrown to the wolves on 6 April.'

Lib Dem analysis shows health and care providers are facing £3bn bill next year due to the tax hike, rising to £3.3bn by the end of the decade.

The Lib Dems said London will be the worst hit (£2.2bn over the next five years), followed by the South East (£2.1bn) and the North West (£1.8bn).

A Government spokesperson said: ‘Taking the necessary choices to fix the foundations of the economy at the Budget meant we could deliver an extra £26bn for health and social care. Investment has to be paid for.

‘We've already hit our target of delivering an extra 2m appointments, operations and scans seven months early and announced an £889m boost for GPs to fix the front door of the NHS.

‘We will also reform the dental contract and to support the social care sector, we are making available up to £3.7bn extra for social care authorities in 2025-26.'

 

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