26 February 2025

“Success at Westminster, dismay at Holyrood. But on eNICs exemption, we are back in the running”

Rachel Cackett responds to yesterday’s vote in the House of Lords on amendments to the National Insurance Bill – and the passing of the 2025-26 Scottish Budget

So, first the good news. Last night the House of Lords voted through amendments to exempt the vast majority of the health and social care sector from catastrophic NI increases, as set out in the National Insurance Contributions (Secondary Class 1 Contributions) Bill. The Lords also passed a key amendment which would make the government report on the impact of national insurance changes.

Over the past few weeks, we’ve been discussing the National Insurance Bill with MPs and engaging with peers on amendments. Many of our members have shared their own organisation’s perspectives about how the eNICs change would impact them, and the consequences for the people they support and employ. I want to thank all the members of the House of Lords who worked on and laid amendments yesterday, and every single peer who listened and voted for exemption to save social care. We can’t tell you how much your advocacy matters for social care in its time of crisis.

Yesterday’s votes give us hope, but the changes aren’t in the bag yet. Now they go back and forth between the Lords and Commons and we will need a lot of Labour MPs to stand up for what is right here, if these wins are to hold. But yesterday morning we saw no room to manoeuvre; today we are back in the running. We’ll take that for now.

In contrast to events in the Lords, yesterday the Scottish Budget was passed at Holyrood with zero commitment to eNICs cost recovery for providers from the Scottish Ministers and only cursory mentions of the sustainability crisis in our sector. This, despite us sharing compelling evidence of the disastrous consequences the policy will have for not-for-profit providers and the people they support.

Earlier this month we conducted a 24-hour survey of our member organisations. Over 50 members participated, representing a combined expenditure of over £850m, employing around 28,000 staff and supporting over 230,000 people across the whole of Scotland. Amongst the sobering responses, we learned that:

  • 57% of respondents are seriously considering handing contracts back to commissioners next year
  • 67% of respondents are budgeting for 2025-26 on the basis that they only expect to reach financial balance through the use of reserves. And of these providers: 91% would no longer be a going concern within four years, if they continued to reach financial balance through drawing down reserves in this way.

With an election year just over a year away, and with so much at stake for the Scottish people, we are surprised the Scottish Government seems ready to live with the consequences of choosing not to fund our sector and supported people. We are just as surprised that a new UK Labour Government chose to put the entire sector at risk through this deeply ill-judged tax, which disproportionately impacts low- paid women. Looking at headlines from the last couple of weeks from both sides of the border, it seems emergency funds can be found for other things – but not vulnerable people. It was ever thus.

But where both elected governments have failed the sector so far, the Lords have provided. So, our energy now turns back to Westminster and efforts to persuade MPs to see the value of social care – and how destructive the eNICs policy would be. There is – thanks to yesterday’s actions – still track ahead.  Please, UK Labour and Rachel Reeves, don’t waste this opportunity.

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2 December 2024

It’s time to give the gift of Fair Pay…

As we enter Budget season, we’ve launched a campaign urging Scottish Government to invest in the workforce and cover the costs of the NI rise

Social care staff deliver vital public services in communities across Scotland, and they should be paid more than the minimum it costs to live.

They are working in a context where public sector cuts, lack of Fair Work and impending changes to Employers’ National Insurance are risking the viability of many services.

So we’ve launched a campaign urging the Scottish Government to give them More Than Warm Words this winter.

For the 2025-26 Budget we’re calling on them to:

  • Take a genuine first step towards the promise of Fair Work. Invest in our people by committing to the Real Living Wage + 10% in 2025-26, as the minimum for all frontline support staff. Stop the loss of essential workers
  • Cover the full costs of ongoing eNICs changes for not-for-profit social care providers, even if Westminster won’t. Otherwise, watch services disappear, unemployment rise, unmet need increase and the NHS crisis worsen.

Across the Scottish Budget period, we’ll be sharing messages and videos from our members in support of the campaign.

We’ve sent our members, and parliamentarians, a mug emblazoned with the campaign message.

And we’ll be calling on MSPs to speak up for the social care workforce and help give them the gift of Fair Pay.

Read the Budget briefing we sent MSPs

Read our press release about the letter we sent the Chancellor on NI

Follow the campaign on our social channels with #MoreThanWarmWords

For more information about the campaign and how to take part, email of Communications & Engagement team: comms@ccpscotland.org

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29 November 2024

Media Release: Over 80 Scottish social care leaders sign letter urging Chancellor to change course on National Insurance

Our members have supported a CCPS letter to Rachel Reeves urging her to provide relief on increased NI bills

“This policy will not save public services. It will crush them”

More than 80 not-for-profit social care organisations have signed a letter from the Coalition of Care & Support Providers in Scotland (CCPS) to the Chancellor urging her to provide relief on increased Employers’ National Insurance bills for them as providers of crucial public services.

Read the letter to the Chancellor

The letter, from CCPS members, makes clear the devastating impact the policy would have on organisations providing social care, and on people receiving support.

CCPS estimates that not-for-profit social care providers will face an additional bill in the region of £30 million next year to cover both the NI rate increase and the threshold reduction – money that providers do not have, and have no means to raise.

The signatory organisations span all aspects of not-for-profit provision in Scotland for adults, children and young people.

Rachel Cackett, CEO of the Coalition of Care & Support Providers in Scotland, said:

“As the representative voice for the sector, and on behalf of our community of providers, we’ve written to the Chancellor to make absolutely clear the existential threat this policy poses to not-for-profit social care, and the wider consequences it would have.

“The relief apparently being offered by the Chancellor to the public sector quite simply fails to recognise the reality of contemporary public services. Our providers deliver public services, largely through publicly funded contracts with the public sector.

“The eNIC policy is being introduced at a time when social care providers are already at extreme risk. In March this year, over 80% of our members who responded to a survey told us they were delivering public contracts despite a deficit budget.

“And as our letter states, these pressures are not limited to Scotland; the effects of long-standing under-investment in support services are being felt across the UK. Social care is pared to the bone.

“How can the UK Government claim that those with the broadest shoulders should pay more when this policy will impact not-for-profit organisations supporting some of the most vulnerable people in our society?”

“Services cannot continue if they are not financially viable. This policy will impact jobs – particularly for women – and risk the loss of crucial community-based provision for people who desperately need more well-resourced, rights-based, accessible, quality support.”

She added:

“We urge the Chancellor to provide relief at source to providers, with a recognition that not doing so will devastate public services, including those provided by the senior leaders who have signed this letter – services which  are central to the UK Government’s ambitions.”

(ends)

Rachel Cackett is available for media interviews today (Friday 29th November).
Senior leaders from organisations in CCPS’s membership will also be available by request.

Media contacts: Chris Small chris.small@ccpscotland.org
and Anna Tully anna.tully@ccpscotland.org


Notes for editors

CCPS is the voice of the not-for-profit social care providers in Scotland. Our vision is for people and communities to thrive with the support of a rights-based, sustainable system of social care and support.

More information here.

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