Davey: NICs hit is creating a perfect storm for the care sector

EMBARGO: 00.01 Friday 22 November 

Analysis released by the Nuffield Trust today (Friday 22 Nov) has found that the changes to Employer's NICs look set to cost the adult social care sector over £900m next year, more than wiping out the extra funds allocated to social care at the Budget. The analysis by Nuffield Trust also estimates that the 18,000 independent organisations providing adult social care in England will be faced with increased costs of an estimated £2.8bn in the next financial year, meaning many businesses - especially smaller ones - are at risk of going bust. 

Responding, Liberal Democrat leader Ed Davey said:

"These damning figures lay bare the devastating impact of the National Insurance hike on social care. The government must immediately do the right thing and exempt care providers from this ill-thought through tax hike.

“This hit is creating a perfect storm for a care sector already damaged by the Conservative party's neglect. Now there is a real danger small care providers will simply not survive.

“Ultimately, it's people in care who will suffer the consequences. The Chancellor must urgently act to help our social care sector before it's too late."

ENDS