Providers Unite, a coalition of care organisations, demonstrate in Westminster (Image: Ian Vogler / Daily Mirror)
Social care providers told how they are facing a “struggle to survive” in the wake of Rachel Reeves’ Budget battering.
Campaigners are taking part in an historic day of action calling for exemption from National Insurance hikes and wage bill rises which could send many to the wall.
The sector, which runs facilities looking after those in need of around-the-clock care, have been vocal in their criticism of levies which will strike in April, saying funding announcements are a drop in the ocean compared to the extra costs they face.
Care home owner Mike Padgham, chair of the Independent Care Group which speaks for providers, said: “With all the cost increases coming care providers are facing a struggle to survive this spring.
“Without some government help, we may well lose more and the number of people going without care will grow from the two million it already is.
“What this means is that social care providers will leave the sector, care will be rationed even more and the number of people going without will rocket.”
From April 6 employers will pay 15 per cent in NI contributions on salaries above £5,000, compared to 13.8 per cent on salaries above £9,100 now.
In addition, the National Living Wage will increase to £12.21 an hour, while the National Minimum Wage, for those aged 18-20, will rise to £10 an hour.
The protest was organised by Providers Unite, a grassroots coalition uniting community care and support providers across the UK, which has warned of the “systemic collapse of care services” across Britain because of an unmanageable financial burden.
Providers Unite, a coalition of care organisations, demonstrate in Westminster (Image: Ian Vogler / Daily Mirror)
The Association of Directors of Adult Social Services [ADASS], a membership organisation for those working in adult social care, said 81% of councils expect budgets to be overspent this year – up from 72% in 2023/24 – by a combined total of £564 million.
President Melanie Williams described the NI increases as “catastrophic”.
Professor Martin Green, Chief Executive of Care England, the charity representing independent providers, said: “The Government must take action before it’s too late.
“The message is crystal clear: We are watching the fabric of our care system unravel in front of our eyes. If the Government fails to act now, services will close, people will go without care, families will be left to shoulder unbearable burdens – and the NHS, already on its knees, will collapse under the weight of unmet social care needs. Every day of inaction pushes providers to implement their exit strategies and scale back services to point from which there may be no return.”
Analysis by the Nuffield Trust estimates social care providers face a £2.8 billion hit due to NI and wage increases.
Separately one in five of 1,180 providers polled by the Care Provider Alliance say they were planning to close, 73% will refuse new referrals from councils or the NHS, 57% planned to hand back contracts and 64% will make staff redundant. Nine in 10 are deeply concerned about the Budget’s impact on their viability to remain in business.
The Treasury was unavailable for comment.