We Support the Call for a Social Care Exemption from NIC Increases

Wendy Evans-Hendrix, CEO of Orwell Housing Association, said;

"The recent budget's decision to increase employer National Insurance contributions (NIC) and the National Living Wage (NLW) will have significant repercussions for Orwell's Care and Support Services along with the many other care and support providers across the nation.

The 1.2% rise in NIC, the reduction in the threshold at which contributions are paid 11%and the 6.7% increase in NLW will place further substantial financial strain on our operations. As a provider already navigating tight budgets, these additional costs will challenge our ability to maintain the high standards of care we are committed to delivering. We estimate that to manage these pressures, we will need our commissioning local authorities to increase our funding by approximately 11%.  

Without adequate financial support, the quality and availability of our services could be at risk. Orwell's Care and Support Services provide essential care and support for individuals, including to those facing some of life's most challenging circumstances, those with learning disabilities, older adults, and those facing homelessness or domestic abuse. The increased costs could force us to make difficult decisions potentially impacting the well-being of those we support.

The financial pressures may also affect our ability to attract and retain skilled colleagues. Competitive wages are crucial for maintaining a dedicated workforce, and the increased NIC and NLW will limit our capacity to offer competitive salaries and career progression opportunities. This will lead to higher turnover rates and difficulties in recruiting qualified personnel.

We are asking the government to reconsider. Applying these changes to those providing care and support will undermine any potential benefits that might have been seen from the change in government. Join us in making our voices heard and protect the quality of care and support services. Together, we can urge the government to think again and prioritise the well-being of those who rely on these essential services. #ProvidersUNite #SaveSocialCare

Despite these challenges, our commitment to our colleagues and the people we support remains unwavering. We will continue to work tirelessly to ensure the sustainability of our services and the well-being of those we support and care for.”