Tue, 22 Apr 2025

Tue, 22 Apr 2025 Care homes 'risk bankruptcy' due to NI rises

Industry association Care and Support West says it is likely some small providers will struggle.

* A leading care association, Care and Support West, warns that some residential homes may go under due to rising costs such as National Insurance (NI) and the national living wage.
* The association's chief executive, David Smallacombe, is calling on the government to exempt social care providers from the NI hike, which would cost an extra £2,500 per staff member in care organisations.
* Care home residents may face increased fees due to rising costs, with one resident receiving a 30% jump in fees due to NI increases.
* The government has allocated an additional £3.7bn to local authorities to help meet the cost of social care and £502m to support them with NI rises.
* Some care providers are expected to raise prices for vulnerable residents, which could lead to some businesses going out of business.
* A spokesperson for the Department of Health and Social Care (DHSC) said the government is working towards building a National Care Service that is fair and affordable for all.
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