Providers Unite

Care Providers Call for Urgent Review to Prevent Collapse of Community Care Services

We stand alongside care providers in calling for an immediate review of recent Budget measures, which threaten the stability of community care services across the country.

The Providers Unite campaign is urging Chancellor Rachel Reeves to urgently reconsider the planned increases to National Insurance (NI) and the National Living Wage (NLW) to prevent devastating impacts on essential care services.

As of April 2025, employer NI contributions will rise from 13.8% to 15%, with the threshold at which employers start paying NI dropping significantly from £9,100 to £5,000 per year. Meanwhile, the NLW will increase by 6.7% for workers aged 21 and over, with the National Minimum Wage rising by 16.3% for those aged 18–20 and by 18% for under-18s and apprentices.

While the increase in the NLW is a positive step for staff, the combination of higher NI contributions and lower thresholds will lead to a minimum 9.4% rise in employer costs. For employers committed to paying the Real Living Wage and creating opportunities for young workers, the financial strain is expected to exceed 12%.

In an open letter to the Chancellor, the signatories – including Norfolk Care Association’s Executive Director Angela Steggles, Care England, and the Homecare Association – have called for urgent action. They are demanding exemptions similar to those granted to the NHS or adjustments to Local Government Finance settlements to bridge the funding gap.

Without such measures, the care sector faces what they describe as a “systematic collapse” of community care services across the country.

At Norfolk Care Association, we fully support this campaign and join our colleagues across the sector in highlighting the urgent need for a sustainable solution. Care providers are already under immense financial strain, and without intervention, the impact will be felt not only by care staff but also by the vulnerable individuals who depend on these vital services.