UK social care organisations urge PM to exempt sector from eNIC increases

Eight major organisations representing the social care sector across England, Scotland, Wales and Northern Ireland have today called on the new Prime Minister to take urgent action to exempt providers from the recent increases to employers’ National Insurance contributions (eNICs). 

In a letter sent to Andy Burnham this morning, organisations representing providers of social care across the UK said such a move would be “a vital first step in providing relief to a sector under immense pressure, while […] more work is done to ensure social care provision can flourish, sustainably, at the heart of our communities.” 

At the end of 2024, the UK Government announced plans to increase eNIC rates and reduce the threshold at which employers start paying this tax. While relief was offered to the public sector, commissioned providers of social care were not given any relief from these increased bills.  

“Social care is fundamental to the wellbeing, independence and dignity of millions of people. Recognition of its vital role is needed more than ever at a time when our sector faces severe instability.” 

At a time when providers were already under huge strain, these additional costs compounded financial pressures, which are already having a noticeable impact on services.    

As set out in today’s letter, “our members report that this additional financial burden has resulted in fewer resources for frontline services and reduced capacity at a time where demand for social care continues to grow.” 

The groups who have written to the Prime Minister today welcomed the emphasis he has placed on the importance of social care. The letter states: “Social care is fundamental to the wellbeing, independence and dignity of millions of people. Recognition of its vital role is needed more than ever at a time when our sector faces severe instability.” 

The organisations also highlight that Mr Burnham has recognised the issues with how eNIC changes were implemented, and the impacts of these changes. 

The letter notes that amendments to exempt social care providers from the increases were passed in the House of Lords but then overturned by the government in the House of Commons and urges the Prime Minister to revisit this exemption at pace. 

The organisations who have signed the letter are: Care England, Care Forum Wales/Fforwm Gofal Cymru, Coalition of Care and Support Providers in Scotland (CCPS), Homecare Association, Independent Health & Care Providers (Northern Ireland), National Care Forum, Scottish Care, Voluntary Organisations Disability Group (VODG) 

CCPS CEO Rachel Cackett said: “I welcome the attention the new Prime Minister has placed on social care in recent weeks, and hope this translates into urgent action from all governments in the UK to support a sector under immense pressure. 

“Right across the UK, social care providers need more than just warm words – they need tangible action to ensure their sustainability, so they can continue providing life-changing support to millions of individuals, their families and communities.  

“The Prime Minister has signalled he intends to get to work on a long-term plan for social care – but the truth is, the sector can’t wait.  

“We need action now to make sure providers, their staff and the people they support can flourish, and providing relief from eNIC increases is a vital first step. Only our new PM can drive this change.”