CPA Report A “Stark Warning” Says Anchor Chief

Rob Martin, managing director of Care Services for Anchor, England’s largest not-for-profit provider of care and housing for people in later life has shared his deep concern following the release of the Care Providers Alliance Report earlier this week.

The comprehensive survey of over 1,180 care and support providers revealed the social care sector faces potential collapse due to the combined impact of National Insurance changes and National Living Wage increases announced in the recent Budget.

Mr martin said: “The findings of the Care Providers Alliance report are a stark warning to Government that the planned increase in National Insurance contributions will have a hugely detrimental impact on the vulnerable people served by the social care sector.

“While we appreciate the government’s intention to raise funds for the National Health Service and social care, it risks impacting the very people it aims to protect.

“This increase in National Insurance contributions will place an additional financial burden on social care providers, already under pressure due to rising costs, staff shortages, and increasing demand for services and even more so on smaller organisations which make up almost 90% of social care providers.

“The change in the National Insurance threshold will also disproportionately impact organizations paying the real living wage as the threshold adjustment makes a larger portion of salaries subject to National Insurance contributions.

“At a time when delays in the number of people discharging from hospital has increased by 43%*, this latest announcement will add further pressures to the NHS.

“As a large not-for-profit national care provider, we will work to ensure the impact of these additional costs are not felt by society’s most vulnerable and will remain committed to paying real living wage to our valued colleagues.

“We urge Government to review its position and exempt care providers from the changes in employers’ National Insurance contributions and create a sustainable long-term funding settlement for social care.”

*June 2023 versus June 2024 discharges reported.