Social Care Sector Petition to Exempt Employers from NIC Increase Garners Government Response
The government has issued a response to a petition to Exempt all social care providers from the employer NIC increase”.
The petition called on the government to relieve the sector of this additional financial burden, which many argue threatens its already fragile stability.
In recent weeks the adult social care sector has expressed deep concerns over the recent changes to National Insurance Contributions (NIC) for employers, and the increase in the national minimum wage, warning of significant financial strain that could lead to closures, job losses, and reduced investment in the sector.
The petition has gained traction, amassing 31,000 signatures to date and drawing support from staff at The Carer.
The Government’s Response
The Government is committing to provide support for the costs that arise from the changes to the employer NICs of ONS-defined public sector organisations only.
The Government is committing to provide support for the costs that arise from the changes to the employer National Insurance Contributions of ONS defined public sector organisations only.
The Government considered the cost pressures facing adult social care as part of the wider consideration of local government spending within the Spending Review process. This assessment took into account a wide range of factors including changes to National Insurance Contributions and the National Living Wage increases. In response to the range of pressures facing local authorities, the Government is providing a real-terms uplift to core local government spending power of around 3.2% which includes £1.3 billion of new grant funding for 2025-26. Further details will be set out at the provisional Local Government Finance Settlement in December.
Over the next decade, this Government is committed to building consensus on the long-term reform needed to create a National Care Service based on consistent national standards, including engaging cross-party and with people with lived experience of care and unpaid carers. Alongside our 10 Year Plan for health, we will create a long-term plan for adult social care which recognises the importance of social care in its own right, as well as its role to support the NHS.
Reform will not happen overnight; we will make progress in the short term to build the foundations for a National Care Service and support the Government’s Health Mission.
Department of Health and Social Care
Social care leaders and advocates have voiced disappointment with the government’s refusal to exempt the sector from NIC increases, arguing that immediate relief is essential to prevent further destabilization. They contend that the broader support measures outlined do little to address the acute challenges posed by increased employer contributions.
As the petition continues to gain signatures, it underscores the sector’s demand for urgent action. Providers, staff, and supporters are hopeful that ongoing discussions and advocacy will yield more targeted support in the near future.
