Social care voted to be exempt from the rising National Insurance Contribution, but support for the sector can’t end there. Fran Kirke, VP of Care at OneAdvanced with over 15 years’ experience in the health and care sector, explains
The recent decision by the House of Lords to exempt the health and social care sector from the national insurance hike is a huge win for those closely involved in the sector. It both acknowledges the financial pressures faced by many care providers and offers some vital relief at a time when many are enduring significant operational strain. While, of course, it’s a positive step, it also warrants a sober reflection on the broader challenges that remain for the sector as a whole.
This exemption isn’t simply a financial reprieve; it’s an indication that the importance of social care is finally receiving the overdue recognition it deserves. We know just how crucial a role the care sector plays, providing essential services to some of the most vulnerable individuals in our communities, yet it has often been overshadowed by the broader health system. The economic pressures on local authorities and care providers have been accumulating for years, leaving limited capacity for resilience against additional costs like the proposed national insurance increases. Halting this policy’s progression in social care, at least for now, offers a much-needed pause for a sector already operating on precarious margins.
The exemption now returns to the House of Commons for consideration. And it’s worth noting that while the Lords have set an important precedent with their decision, the final outcome is by no means guaranteed.