SNP MSP calls out the impact of the employers’ national insurance contributions increase on the care sector

Emma Roddick MSP has called out the impact of changes to Employers’ National Insurance contributions following a visit to L’Arche Highland, a community for people with learning disabilities in Inverness.

The Chancellor of the Exchequer said on the 30th of October 2024 that the secondary Class 1 rate of employers’ National Insurance Contributions (NICs) would increase from 13.8% to 15% from the 6th of April 2025.

Additionally, the Secondary Threshold at which employers start to pay NICs will be reduced from £9100 to £5000.

The estimated cost to the adult social care sector in Scotland is £84 million. For many organisations, this devastating rise will push them beyond the limit. The Nuffield Trust raised the risk of Social Care providers going bust in England as a result of the rise, and many in Scotland face similar cost pressures.

Commenting, Emma said:

“The cost pressures facing our social care providers are not sustainable. It was such a shame to hear from L’Arche Highland and others that they are having to take difficult budgetary decisions as a direct result of this poorly thought-out announcement.

“This cost increase by the UK Government will have a devastating impact on the social care sector in Scotland, and the exclusion of social care from exemptions is a mistake that will lead to the loss of vital services in our communities.

“This will directly impact the most vulnerable. It will be on Local Authorities and the NHS to pick up the pieces and try to fill the gaps in vital services at a time when these organisations are already facing their pressures, including the employer contributions fiasco.

“The UK Government is raiding the pockets of key service providers to fill a budget gap – but this is just robbing Peter to pay Paul. It is not sustainable and could cause chaos across Scotland as social care providers collapse.”