MPs votes against bill amendments to exempt health and care providers from employer NIC increase
MPs in the House of Commons have voted against a bill that would see health and social care providers exempted from the employer National Insurance Contributions (NIC) increase.
The decision on 19 March has been described as a “devastating blow” by the National Care Association and Providers Unite.
Set to come into effect in April 2025, the employer NIC hike was first announced by the Chancellor of the Exchequer at the Autumn Budget 2024. The NIC by employers will rise from 13.8 percent to 15 percent. In addition, the threshold at which businesses start paying National Insurance on a worker’s earnings will be lowered from £9,100 to £5,000.
The National Insurance Contributions (Secondary Class 1 Contributions) Bill will implement the new rates of employer NICs.
Last month, the House of Lords put forward amendments to the National Insurance Contributions (Secondary Class 1 Contributions) Bill that would see health and social care providers exempted from the employer NIC increase.
However, the House of Commons voted to dismiss these amendments by 316 to 187.
Nadra Ahmed CBE, Exec Co Chair of the National Care Association on behalf of Providers Unite, commented at the time of the vote: “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.”
Karolina Gerlich, CEO of The Care Workers’ Charity, stated: “The government’s decision to pass the NIC Bill without exempting the social care sector is both irresponsible and short-sighted. This policy imposes a substantial financial burden on a sector already in crisis, jeopardising the livelihoods of dedicated care workers and the essential services they provide.
“We urge the government to reconsider this approach and implement measures that protect and support the social care workforce and the vulnerable individuals they care for.”
