Providers Unite are renewing calls for the Government to step in as looming National Insurance contribution (NIC) rises continue to cast a shadow over a sector facing increasing financial pressures.
More than 3,000 people attended a rally in Westminster which shone a light on the struggles faced by care home providers and managers.
And although The Department of Health insists it is ‘committed’ to tackling decades of underfunding across social care, those on the frontline insist social care is at breaking point.
Providers Unite — a national grassroots organisation set up by those embedded in the care sector — organised the London event last month and argued that NIC exemptions, similar to those granted to the NHS, should be available to care providers.
Stephen Trowbridge, managing director of Swindon-based First City Nursing, argued recent increases in employer NICs, and the resulting wages rises, were compromising the future of social care.
“Honestly, I’m really worried,” he told the BBC. “This year, the government has doubled down with the national insurance costs.
“The councils, and this is the worry, they’re all on our side, but they haven’t got the money, and they’re not putting it into their budgets, because they can’t afford to.
“Social care is on its own with this one. And it’s not just our sector, the charities, the hospices, if we’re not around come April, which there’s a big chance that would be the case . I don’t know what’s going to happen.”
Providers Unite claim the care sector needs £8.4bn to meet future demand, improve access to care and cover the full cost of care by 2024/25.
The increase in employers’ NICs means the earnings threshold for these contributions will be lowered from £9,100 to £5,000 — further intensifying the financial strain on employers.
And this comes on top of a 6.7 per cent increase to the National Living Wage, taking it to £12.21 for those aged over 21 and £10 for those aged over 18.
Providers Unite argue these wage increases will significantly raise operating expenses for providers, where staffing costs already account for more than 70 per cent of total expenses.
Callum Thompson, CEO of Business Energy Claims, added: “The emergence of Providers Unite illustrates the need for a fresh conversation around funding of care and the need for transparency around the financial challenges facing our friends in the sector.
“Im the short term would love to work with Providers Unite to see how we might be able to help their members recoup money they may have lost due to mis-sold energy contracts.
“Longer term we fully support the action they’re taking and understand the challenges facing care home providers and managers right now.”