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‘Black hole’: Professor Martin Green, director of Care England
The Treasury should exempt social care from a planned rise in national insurance contributions or risk creating a £2bn “black hole” in the sector, the head of a major trade body has warned.
Professor Martin Green, director of Care England, said Budget plans to increase employer contributions from 13.8 to 15 per cent risked putting social care in “financial jeopardy”.
Liberal Democrat leader Ed Davey said last week that as the “vast majority” of UK social care providers were privately owned, they would be hit hard by the tax rise, without benefiting from additional funding going to the NHS already. public sector care groups.
Green backed Davey’s claim to exempt the sector and also called on ministers to reconsider lowering the threshold at which employers pay National Insurance on workers’ wages. It is set to fall from £9,100 a year to £5,000 from April 2025.
He said the plans, with a 6.7 per cent rise in the national living wage, would “create a £2bn financial black hole which healthcare providers could plug”.
“With local authorities already funding the majority of social care placements,” he said, “the Government has put them, and the sector itself, in financial jeopardy.”
The tax rise is expected to net the Treasury £25bn a year.
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