Care group's plea over rising wages and taxes

A group of care providers has written to the health secretary over worries about the impact of the Autumn Budget.

The Berkshire Care Association said its members would be badly hit by an increase in the rate of employers' National Insurance contributions and a rise in the National Living Wage.

It has written to Wes Streeting to say that the change will place a "severe strain" on firms and other organisations.

The Department of Health and Social Care said it had allocated at least £600m in new funding.

But the sector said in October that would be “wiped off instantly” by increased staffing costs.

Lorraine Clements, who runs the Downview Residential Home in Hungerford, said the “unfair” National Insurance rise could be “the nail in the coffin” for some firms.

The home was set up by her parents 33 years ago and cares for people with learning disabilities, autism and those who display challenging behaviours.

“We are really going to have to look at how we are running the business. We have never been about huge profits but obviously we need to be able to cover our costs and it’s very worrying,” she said.

“We are only a seven-bed home, looking to expand to an eighth and hopefully looking to get another home. But that’s definitely something that is going to be put on hold for a while now.”

David Cockcroft, a regional manager for Theale-based Dimensions, which supports people with learning disabilities and autism, said the government needed to take action.

He said a rise of the minimum wage to £12.21 an hour from April 2025 for staff aged 21 and over would increase annual costs by about £10.2m.

He added the National Insurance changes would cost it about £5m.

“What we are calling for is action to avoid closing any services. I think it goes without saying that stopping support for someone who relies on it would be an absolute last resort,” Mr Cockcroft said.

“That’s why it’s crucial the government acts now so providers like us can carry on providing these vital services.”

A Department of Health and Social Care spokesperson said: “This government inherited a social care system in crisis.

"We are determined to tackle the significant challenges and build a National Care Service so everybody can access the high quality care they deserve.

“We have allocated at least £600m of new funding for social care and £86m for the Disabled Facilities Grant, which are part of a wider package to bolster support for councils.”

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