William Eichler 27 January 2025

Tax hike threatens to add to nursing home costs

Tax hike threatens to add to nursing home costs image
Image: PeopleImages.com - Yuri A / Shutterstock.com.

The Government has been urged to reverse its hike in national insurance on care providers as new figures reveal the extent to which nursing costs for pensioners have increased over the past decade.

Analysis of House of Commons Library data by the Liberal Democrats has found that local authorities are spending £53,352 a year in nursing costs per pensioner.

This is up more than £24,000 on 2015/16’s level of £29,276 a year and represents an 82% jump in total.

In 2015/16 nursing care costs paid by councils per pensioner were £563 a week. As of 2023/24 that number stood at £1,026 a week.

Referring to the increase in NICs, Lib Dem Treasury spokesperson, Daisy Cooper MP, said it was disappointing that the Government has decided to ‘ram through this self-defeating jobs tax’.

‘Councils providing care are already warning that their budgets are in turmoil and this tax rise will only make it more expensive, stretching their finances even further,’ she said.

‘Instead of heeding these warnings, the Chancellor has pushed ahead with this foolish tax hike and Ministers risk repeating the Conservatives' mistakes of kicking the can down the road on desperately needed social care reform.’

A Department of Health and Social Care spokesperson said: ‘We are making available up to £3.7bn extra for local authorities next year. We are also investing in an extra 15,000 home adaptations to support disabled people to stay in their homes and raising the carers allowance.’

SIGN UP
For your free daily news bulletin
Highways jobs

Minerals Monitoring and Compliance Officer

Durham County Council
Grade 9 £35,412 to £39,152 per annum
We are looking for an experienced individual who has the knowledge of service planning issues relating to development management and monitoring / comp Durham
Recuriter: Durham County Council

Care Support

Durham County Council
Grade 4 £25,583 - £26,824
We have a permanent post available within the Pathways Service - which provides day services Monday to Friday to adults with complex needs. We have 1 Peterlee
Recuriter: Durham County Council

Classroom Teacher

Durham County Council
£37,101 - £45, 352
Classroom Teacher (across KS1 and LKS2) Required to start 1st September 2026   The children, staff and governors of Sedgefield Primary are looking to Sedgefield
Recuriter: Durham County Council

Class Teacher- EYFS Lead

Durham County Council
£45, 352 - £51,048
The children, staff and governors of Sedgefield Primary are looking to appoint an enthusiastic and hard-working Reception Teacher to join our strong t Sedgefield
Recuriter: Durham County Council

Teaching Assistant

Durham County Council
£26,403 - £28,598
At Howletch Lane we are commited to providing a nurturing and inclusive environment where every child can thrive academically, socially and emotionall Peterlee
Recuriter: Durham County Council
Linkedin Banner