House of Commons NIC Vote Deals Devastating Blow to Social Care Sector

MPs have overturned an exemption for adult social care providers from the forthcoming increase in employer national insurance contributions (NICs), in what sector leaders have described as a “devastating blow”.

During a two-hour debate, the Exchequer Secretary James Murray MP (Labour, Ealing North) repeatedly dismissed concerns about the bill’s impact.

The tabled amendments, proposed by the Liberal Democrats in the House of Lords sought to reduce National Insurance contributions to 13.8% for specified employers, including care providers, hospices, and charities with turnovers under £1 million.

Despite the clear need for relief, the House of Commons voted to dismiss the amendments by 307 to 182, delivering a crushing setback to the social care sector.

Nadra Ahmed CBE, Exec Co Chair of the National Care Association on behalf of Providers Unite, commented:
“Today, we bear witness to a devastating blow that seals the fate of thousands of care providers across our nation. In a callous act of indifference, the government has dismantled the core principles and ethos of the Care Act 2014, abandoning millions who depend on vital support. This is indeed a dark day for community based care not only a ruthless assault on those we protect and employ, but on the very fabric of our democracy.”

“This is intolerable, and as a result, we will take further action to challenge this devastating defeat for the millions who depend on us for vital support. All previous attempts to remain diplomatic and constructive will be set aside. We will mobilise the more than 4,000 organisations already part of Providers Unite to confront the defeat of the NICs amendments, urging them to lobby their political representatives and apply significant pressure on local authorities. We call on thousands more care and support providers to join us in ensuring that the most marginalised members of our communities are protected from this lack of compassion by our elected representatives.”

Care England condemned the House of Commons’ vote, saying:
“This vote was not a free choice for MPs, as Labour’s whips ensured they toed the party line, leaving little room for dissent. Unable to vote with their conscience, many instead voted either with their feet, or by abstaining, refusing to stand by as the government pushed ahead with yet another devastating blow to social care. This deliberate suppression of debate has denied the sector the urgent support it so desperately needs.”

Professor Martin Green OBE, Chief Executive of Care England, said:
“Today, we bear witness to a devastating blow that seals the fate of thousands of care providers across our nation. In a callous act of indifference, the government has dismantled the core principles and ethos of the Care Act, abandoning millions who depend on vital support. This is indeed a dark day for community-based care, not only a ruthless assault on those we protect and employ, but on the very fabric of our democracy.”

Care England is urging the government to reconsider its position and introduce a targeted relief package to protect social care providers from financial collapse.

We call for:

• The Treasury to urgently revisit the financial support options Care England has presented, ensuring care providers receive the necessary funding to remain viable.
• Local authorities and Integrated Care Boards to commit to sustainable fee rates that reflect the true cost of care, factoring in these additional financial pressures, and to confirm these rates in a timely manner to provide certainty for providers.
• MPs to push for an urgent debate on a long-term funding solution for social care – one that addresses workforce shortages, inflationary pressures, and the growing demand for complex care – and to ensure the Spring Budget includes provisions that mitigate the impact of these changes.

Liz Jones, National Care Forum Policy Director, said:
“Today the government has chosen to ignore the very clear warnings from care and support providers across the nation, as well as the very considered House of Lords amendments to the National Insurance Contributions (Secondary Class 1 Contributions) Bill.”

“In choosing to vote down the amendments that would have protected care and support providers from the devastating impact of the employer’s National Insurance Contribution changes, the government inflicts a devastating blow on already fragile, underfunded and undervalued essential public services which millions of people, and their families, depend on for vital support. This is a dark day for our sector, the people we employ and the people we support.”