Charities face making cuts to 'vital' care services as National Insurance hike looms

Charities in Scotland are warning they’re set to lose around £82,000 a day when the employer National Insurance increases come into force on April 1.

Some charities say the most vulnerable will have care packages cut to mitigate the extra costs, and are desperately seeking assurance from both the UK and Scottish Governments to cover the cost and prevent charities from going to the wall.

Data shared exclusively with STV News from the Coalition of Care Providers Scotland (CCPS) show the changes amount to £30m a year of extra costs, at a time when data shows the third sector is already shrinking.

CCPS chief executive Rachel Cackett said the National Insurance increase is “a massive threat”.

She told STV News: “We have absolutely no idea how we’re going to cover that bill. We are desperately short of money.

“We see many providers with flatlined contracts for some years, putting limits on services to be provided, cuts to contract costs.

“We really are struggling. It’s the people at the frontline who will feel this – families and the people who need support.”

Chancellor Rachel Reeves announced the decision to hike National Insurance contributions from employers in her October Budget.

The chancellor announced funding to protect the public sector in England from the increase, with a population share of the cash likely to be between £290m to £350m.

But the increase is expected to cost Scotland’s finances around £700m, driven by its bigger public sector workforce.

Emma McKendrick is a peer support worker with non-profit care provider Thistle Foundation and also benefits from round-the-clock care herself.

“The support I receive enables me the things I want to do, like doing my job, which allows me to support people in the community. Without it, I wouldn’t be able to come to work.

“I need to get my needs met to be a part of my community, to lead that ordinary life and lead it well.”

Emma McKendrick says cuts to 'vital' care services will put even more pressure on NHS — Emma McKendrick says cuts to ‘vital’ care services will put even more pressure on NHS STV News

Emma said cuts to support packages will leave people like herself “vulnerable”.

“All you hear about is services being cut. This isn’t something out a TV drama, this is not something that happened years ago. Cuts to vital services are now a part of the fabric of today’s society.

“People are worried and scared that they will go from independent living to moving back with their parents. Some people don’t have family to move back to. It’s a real worry.

“I’d have to stop working. I’d be at home large parts of the day. I’m unable to make food or get a drink. If anything happened overnight, I wouldn’t be able to get out of my house.

“When you rely on services to live your life, then of course it’s natural to feel that you’re at the sharp end.”

She added: “If you don’t make sure social care organisations are able to continue work, there will be untold pressure on the NHS. Let’s not make that worse.”

Thistle Foundation chief Mark Hoolahan estimates the rise will cost the charity, which employs 350 people, an additional £300,000 a year.

Thistle Foundation chief Mark Hoolihan STV News

“It’s going to be massive and we don’t know how we’ll bridge the gap. We don’t have any way to raise money and cover that cost. That’s going to push us further into a deficit position.

“It’s very difficult to continue to maintain roles and services when facing these rising costs.”

Mark said there should be an exemption for non-profit care providers – or the government should step in to cover the cost.

“If that doesn’t happen, it’s going to affect people’s lives,” he added.

“The National Insurance rise is taking that value out of social care at a time when we need to be investing in it.

“These are statutory services that must be provided by law.”

Social care minister Maree Todd 'hopeful' UK Government will help mitigate impact on third sector — Social care minister Maree Todd ‘hopeful’ UK Government will help mitigate impact on third sector STV News

Social care minister Maree Todd confirmed ministers are in talks with the UK Government to discuss the impact on Scotland’s third sector.

She said: “I want all of the money we invest in social care to go to social care. I don’t want £30m a year to go back to the Treasury because they introduced a tax on jobs. It’s really important that this is mitigated.

“The sector is really fragile already, and this is causing huge concern. Providers also often have a lot of part-time workers, low-paid workers, so the hit is particularly hard on these people.

“I think the UK Government made this decision backed into a corner by their own proclamations during the run-up to the election. They have made this decision without recognising the impact it would have on health and social care.

“We’re absolutely clear the UK Government needs to provide funding and we’re working very closely with the sector to make sure we hear and understand the impact it is having.”