Care providers threaten legal action over NI contribution increases
Care England, the representative body for independent care providers, has this week instructed lawyers to begin judicial review proceedings over the imposition of higher Employers National Insurance (NI) Contributions.
The move comes after MPs overturned a proposed exemption for adult social care providers from the forthcoming increase in employer national insurance contributions (NICs), which Care England claims will leave many organisations “on the brink of bankruptcy”.
In a vote last week (19 March), MPs rejected House of Lords amendments to the legislation introducing the NICs rise that would have exempted regulated care home and home care providers in England and Wales, along with charitable social care services and health bodies.
From next month, the rate of employer NICs will rise from 13.8% to 15%, and the employee salary threshold at which firms start paying the tax will drop from £9,100 to £5,000 a year.
Professor Martin Green, Chief Executive of Care England, said: “It is clear that the Government is not listening to the sector and has not acknowledged the body of evidence that shows the enormous impact these charges will have on care providers, and their ability to deliver care and support to the citizens who desperately need it.
“Since it took power, this government has delivered a series of blows to the care sector and there is a fundamental lack of understanding about the importance of our sector, and its social and economic contribution to local communities. The Chancellor said that she delivered a budget for growth, but her actions in imposing increases in national insurance contributions will leave many organisations on the brink of bankruptcy.”
He added: “It is clear that this Government will not listen to the considered advice of the House of Lords, so our last resort is to call them to account through the courts.”
Care England has instructed Aston Brooke Solicitors to begin the judicial review proceedings.
A Department of Health and Social Care spokesperson said: "We inherited an extremely damaged economy, NHS and social care sector. We are turning this around through our Plan for Change and have already taken action to deliver an extra £26 billion for health and social care.
“We've brought in a £3.7 billion funding boost, 7,800 new adaptations to help disabled people live independently in their own homes, and we are also introducing the first ever Fair Pay Agreement for care professionals.
“Baroness Louise Casey is leading an independent commission to build cross-party consensus for a National Care Service to build a system fit for the future that is fair and affordable for all.”
Lottie Winson
