Social care campaigners march on Parliament against national insurance rise

Social care campaigners are marching on Westminster to tell the Government that providers are “facing a struggle to survive this spring”.

A number of groups were taking part in a day of action on Tuesday, under the umbrella Providers Unite, to call for an exemption from national insurance contributions (NICs) for employers in adult social care and help to cover wage bill rises.

The sector has been roundly critical of October’s Budget announcements, saying the investment announced for social care will be dwarfed by the costs from NICs and wage increases.

Chancellor Rachel Reeves increased the rate of employers’ NICs by 1.2 percentage points to 15% and slashed the threshold at which the tax starts being paid from £9,100 to £5,000 to raise £26 billion a year.

She also announced that the national living wage will increase by 6.7% for employees aged 21 or older – from £11.44 an hour to £12.21 – from April.

The Association of Directors of Adult Social Services (Adass) has previously estimated the effects could cost councils about £1.2 billion in inflationary pressures and a further £0.6 billion in the cost of provider fees paid by councils.

In a letter to the Chancellor following the Budget, providers said it “risks eroding the foundations of the public services we deliver, which extend far beyond elderly care”.

They added: “They include mental health, domiciliary care, learning disabilities, supported living, and other specialised services.

“To remain viable, these services require appropriate levels of state funding to meet the varied and growing needs of our communities.”

Among the groups taking part on Tuesday were the Homecare Association, a UK membership body supporting homecare providers.

Its chief executive, Dr Jane Townson, said: “Losing access to quality homecare risks harm to people needing care; adds burdens to family carers; and piles pressure on an over-stretched NHS.

“Today, we stand united with homecare providers and their care workers with one message: enough is enough. The Government’s refusal to exempt our sector from the latest national insurance hikes, coupled with a lack of proper funding for the minimum wage increase, risks devastating disruption of homecare provision.

“With the NHS on its knees already, who else is going to keep millions safe, independent, and living at home?”

Mike Padgham, chairman of the Independent Care Group (ICG) – representing adult social care providers in York and North Yorkshire – said: “With all the cost increases coming, care providers are facing a struggle to survive this spring.

“Without some government help, we may well lose more providers and the number of people going without care will grow from the two million it already is.”

An independent commission into adult social care, led by Baroness Louise Casey, is due to begin in April.

While a first phase is due to report in mid-2026, the Government has said a second phase, making long-term recommendations, might not report until 2028.

A Department of Health and Social Care spokesperson said: “We inherited significant challenges facing social care and have taken immediate action, including a £3.7bn funding boost, 15,000 new installations to help disabled people live safely and independently in their own homes, and a £2,300 increase to carers allowance.

“Dame Louise Casey is leading an independent commission to develop recommendations for a National Care Service to provide high quality care for everybody who needs it and help us deliver our commitment to rebuild the sector so that it is fit for the future.”