Increased costs mean care providers “are facing a struggle to survive this spring”, a York care campaigner has said.

Tuesday, 25 February 2025 17:22

By Dylan Connell

Mike Padgham, chairman of the Independent Care Group (ICG) – representing adult social care providers in York and North Yorkshire, was speaking ahead of a march on Westminster today (Tuesday, February 25).

He is expected to join social care campaigners in urging the Government to review the budget measures, calling for an exemption from national insurance contributions (NICs) for employers in adult social care and help to cover wage bill rises.

The sector has been roundly critical of October’s Budget announcements, saying the investment announced for social care will be dwarfed by the costs from NICs and wage increases.

Chancellor Rachel Reeves increased the rate of employers’ NICs by 1.2 percentage points to 15 per cent and slashed the threshold at which the tax starts being paid from £9,100 to £5,000 to raise £26 billion a year.

She also announced that the national living wage will increase by 6.7 per cent for employees aged 21 or older – from £11.44 an hour to £12.21 – from April.

The Association of Directors of Adult Social Services (Adass) has previously estimated the effects could cost councils about £1.2 billion in inflationary pressures and a further £0.6 billion in the cost of provider fees paid by councils.

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