Care leaders have called for the creation of a ‘bridging’ fund to mitigate the impact of the rise in National Insurance Contributions (NICs) announced in the Autumn Budget.
The call came in an open letter to the chancellor from the National Care Forum and leading care home operator Methodist Homes (MHA).
The letter cited Nuffield Trust research showing the NICs and the National Minimum Wage rises will cost England’s 18,000 social care providers £2.8bn, well above the £880m allocated in the local government finance settlement.
To offset this impact, MHA proposed the creation of a ‘bridging’ fund to help social care providers prepare for the fair pay agreement for care workers.
The letter said this fund should be ‘at least equivalent’ to the sector’s losses from the changes to NICs, which come into effect on 6 April.
The leaders suggested the bridging fund could be administered direct to care providers or via local authorities as ‘ring-fenced’ funding, based on numbers of employees at each care provider.
They stated: ‘Without this bridging fund, the sector risks contracting, jeopardising care and support for millions of people, and moving further away from its ability to deliver on the fair pay ambition.
‘On behalf of the people with learning disabilities, autistic people and older people our members support, and the millions of others supported by the wider sector, we sincerely hope you will implement this much needed emergency measure ahead of 6 April.’
Lee Peart is editor of Hemming Group’s Healthcare Management magazine.
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