Care Providers Call for Urgent Review to Prevent Collapse of Community Care Services
We stand alongside care providers in calling for an immediate review of recent Budget measures, which threaten the stability of community care services across the country.
The Providers Unite campaign is urging Chancellor Rachel Reeves to urgently reconsider the planned increases to National Insurance (NI) and the National Living Wage (NLW) to prevent devastating impacts on essential care services.
As of April 2025, employer NI contributions will rise from 13.8% to 15%, with the threshold at which employers start paying NI dropping significantly from £9,100 to £5,000 per year. Meanwhile, the NLW will increase by 6.7% for workers aged 21 and over, with the National Minimum Wage rising by 16.3% for those aged 18–20 and by 18% for under-18s and apprentices.
While the increase in the NLW is a positive step for staff, the combination of higher NI contributions and lower thresholds will lead to a minimum 9.4% rise in employer costs. For employers committed to paying the Real Living Wage and creating opportunities for young workers, the financial strain is expected to exceed 12%.
In an open letter to the Chancellor, the signatories - including NorCA's Executive Director Angela Steggles, Care England, and the Homecare Association - have called for urgent action. They are demanding exemptions similar to those granted to the NHS or adjustments to Local Government Finance settlements to bridge the funding gap.
Without such measures, the care sector faces what they describe as a “systematic collapse” of community care services across the country.
At NorCA, we fully support this campaign and join our colleagues across the sector in highlighting the urgent need for a sustainable solution. Care providers are already under immense financial strain, and without intervention, the impact will be felt not only by care staff but also by the vulnerable individuals who depend on these vital services.
Source:
Caring Times
Dear Providers,
The UK has recently witnessed a troubling wave of unrest, marked by riots and anti-immigration protests in certain towns. While these actions are perpetrated by a very small minority, they have understandably caused concern among our international colleagues, particularly those working in the social care sector. We want to assure you that these acts have been universally condemned by both the Government and broader society, and they are being dealt with robustly by law enforcement.
As we are all aware, the social care sector is bolstered by the dedication of tens of thousands of international workers, who are integral to the compassionate care we provide every day. Considering the recent events, NorCA is providing guidance to ensure that providers can offer the necessary support and reassurance to their international staff during this unsettling time.
In a statement yesterday, the Health and Social Care Secretary, Wes Streeting, reaffirmed the Government’s commitment to protecting those who care for others, stating:
"I will not tolerate, under any circumstances, NHS or social care staff in any health or care setting being subjected to intimidation, harassment, or racist abuse. We have a zero-tolerance policy in the NHS, and we will take a zero-tolerance approach in social care too. The country is fortunate to have individuals from around the world providing exceptional care, and I believe that the vast majority of Brits are proud of this contribution."
Guidance for providers can be found in our full statement.
Please click below to read the full statement
Dear Providers,
As a matter of urgency, please read the information below, which is based on communication from the Home Care Association/Care Provider Alliance, regarding research and development (R&D) claims. This issue is occurring locally, as informed by our members, and is also being experienced across the country.
We continue to hear about care homes and homecare providers who have been approached by agents marketing schemes to use Research and Development (R&D) Tax Credits to claim Corporation Tax relief. Unfortunately, some unscrupulous companies are targeting the care sector.
Some agents are using high-pressure sales tactics and encouraging care providers to make claims for R&D tax relief, which are ineligible. This risks non-compliance with tax rules and financial penalties.
Commonly, agents cold call care providers and offer a “no win, no fee” service. They submit a claim for R&D tax relief, obtain a tax repayment from HMRC, and deduct a fee before sending the provider the balance. However, even though HMRC has paid a claim, it does not mean they have approved it. If a provider makes an ineligible claim, they may have to repay the total amount to HMRC, including the agent’s fee. HMRC can also charge interest and a financial penalty.
HMRC’s Research and Development (R&D) tax relief guidance states:
“Research and Development (R&D) tax reliefs support UK companies working on innovative projects in science and technology. Before submitting a claim you should consider if your activity will be eligible for R&D tax reliefs...
Please click below to read the full statement
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