The vote for social care to be exempt from the rising National Insurance Contribution has been overturned. Fran Kirke, VP of Care at OneAdvanced with over 15 years’ experience in the health and care sector, shares his immediate thoughts on the news.
I’ve proudly worked within the care sector for more than 15 years, and I’ve seen its extraordinary resilience in the face of relentless challenges. The overturning of the exemption for social care providers from the rise in National Insurance Contribution (NIC) is, without question, one of the most shocking developments in recent years. When the House of Lords first proposed the amendment to ease the financial strain, it felt like a long-overdue acknowledgment of the difficulties facing our care providers. Now, as the House of Commons has chosen to overturn this decision, I can’t help but feel a mix of disbelief and urgency.
The financial pressures on care providers have been building for years. Rising operational costs, underfunding, and narrow margins are not new problems; they are compounded issues that many have been working tirelessly against. The NIC exemption vote in the Lords offered hope, a brief chance for relief amidst the storms of financial insecurity.
Now, though, we’re in a position where this support has been overturned. Professor Martin Green OBE, Chief Executive of Care England has responded to the decision saying ‘Today, we bear witness to a devastating blow that seals the fate of thousands of care providers across our nation’. It really hits home. His words clearly reflect the pain of a sector that works tirelessly to deliver dignity and security to some of the most vulnerable people in our society.
Providers, employees, and the people they support will bear the brunt of this decision. And as someone who works closely with care leaders and providers every day, I know just what’s at stake.
Beyond the numbers
Social care doesn’t run on surplus margins. And these new pressures may well tip many providers from survival to failure. But these financial challenges don’t just impact organisations; they deeply affect people.
The care workers. Working tirelessly but often going underappreciated, they represent the backbone of this sector. They are the ones who weather every shift, bringing comfort and support to some of the most vulnerable people in our communities. Every decision that tightens the belt of care providers also tightens the constraints for these invaluable employees.
And then there are the people who rely on care. Families trying to ensure their loved ones are safe and supported, people with disabilities, older adults dealing with the complexities of ageing, they all depend on care that is compassionate, skilled, and reliable. This decision could put all that at risk. Because it isn’t just a financial hit; it’s a human one.
Our shared purpose
The broader consensus within the sector is clear. This is not just about policy changes; it’s about setting up a care sector fit for the future. Care England is urging the government to revisit their decision and implement targeted support. And Providers Unite has pledged to mobilise its 4,000+ organisations to help confront policymakers.
I’ve often said that the care sector doesn’t just serve the community; it is the community. And at OneAdvanced, I’m proud that we help care providers to do what they do best—care. With this decision, comes a pivotal moment for software. Because it’s increasingly clear that as financial challenges drive more instability throughout the sector, technology will have to play an even bigger supporting role. Software designed for the care sector, that takes the complicated manual adjustments out of complex care invoicing and payroll, can truly support providers in achieving the level of efficiency they need to maintain the high quality of care they work so hard to provide, and that their clients deserve.
We must all come together to help build a social care system fit for the needs of tomorrow. Because the future of care matters, and it’s up to all of us to make sure it’s a future we can be proud of.
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