From April 2025 National Insurance employer’s contributions (NICs) will rise by 1.2 per cent
This Council notes that:
- (a) From April 2025 National Insurance employer’s contributions (NICs) will rise by 1.2 per cent
- (b) From April 2025 the secondary threshold will be lowered meaning that employers will start to pay NICs on employees’ earnings from £5,000 instead of the current £9100
- (c) The Chancellor has recognised “there will be consequences” as a result of the Budget announcements regarding employer NICs
- (d) Analysis from the Nuffield Trust shows that changes to employer NICs will cost the adult social care sector more than £900 million next year
- (e) The same report shows the total burden on the 18,000 independent organisations providing adult social care in England will be £2.8 billion in the next financial year
- (f) Sheffield is grappling with significant financial challenges, and the Adult Health and Social Care Policy Committee is forecast to be £9.5 million overspent this year
- (g) in response to the Nuffield Trust’s analysis, the Local Government Association have stated that asked for “immediate adequate investment is needed in order to address unmet and under-met need and ensure timely access to social care for all who need it”.
This Council believes that:
- (h) subjecting social care providers to higher taxes is counterproductive and will worsen the health and care crisis
- (i) Social care services are provided by a range of organisations including hospices and the voluntary sector, and all but the very smallest will be hit by the employers’ NICs increase
- (j) the Government’s lack of ambition and deafening silence on social care is disappointing
- (k) GP surgeries and many health and care providers will not be shielded from the full force of this tax increase and will have no choice but to cut services and staff numbers
- (l) Ultimately, people in care will suffer the consequences of these employers’ NICs rises.
This Council resolves to:
- (m) Call on the Government to exempt social care providers from the increase in employers’ NICs
- (n) Call for cross-party talks on social care immediately to deliver the sector long-term, sustainable funding.
Ask the Leader of the Council to forward a copy of this motion to the Chancellor.