KCC calls for Chancellor to save social care from ‘devasting triple whammy’

Carer serves dinner to older woman at home

The Government must urgently exempt social care providers from the National Insurance Contributions (NICS) increase set out in the Budget.

Failure to do so will force some Kent care charities and businesses already grappling severe underfunding, intensified by the National Living Wage rise, to close.

In turn, this will put extra strain on Kent County Council’s (KCC) stretched finances – and force KCC leaders to make increasingly tough choices they don’t want to make to ensure vulnerable adults are not left without suitable care.

The stark warning from KCC Cabinet Member for Adult Social Care and Public Health, Dan Watkins, echoes concerns raised across the social care sector following the Chancellor’s autumn update – including by the Kent Integrated Care Alliance (KiCA), which represents local care providers.

Councillor Dan Watkins

...the uptick in NICS makes for a devastating triple whammy that will hugely affect what support is available for those most in need in our communities

Dan Watkins KCC Cabinet Member for Adult Social Care and Public Health

Kent County Council Cabinet Member for Adult Social Care and Public Health, Dan Watkins, said: “The social care sector supports some of our most vulnerable residents.

“But it is already strained to breaking point by the lift in the National Living Wage and chronic funding gap in the face of rising demand.

“It means the uptick in NICS makes for a devastating triple whammy that will hugely affect what support is available for those most in need in our communities.

“The Office for Budget Responsibility's own analysis shows the extra £600million allocated to social care in the Budget will be cancelled out by the new tax rises.

“KCC has also forecast a savings requirement of just under £50m in its own budget for next financial year. Savings of £42m have already been identified but by law we must balance our books and ensure we continue to provide statutory services.

“We will continue to do everything we can to protect our residents. But decisions around funding for services are already incredibly difficult – and they will get more challenging until the Government listens to struggling local authorities across the country and adequately funds social care.

“I therefore urge the Chancellor to immediately review the culminative effect of the recent Budget on social care and ease the pressure on providers and council finances.”

KiCA is one of many organisations to join Providers Unite.

The national grassroots campaign also asks the Government to re-think the impact of the Budget measures on the care sector.

Ann Taylor, Chief Executive of KiCA, said: “The Kent Integrated Care Alliance is deeply concerned the Government has not recognised the vital role that the independent and voluntary care providers play in the support of most vulnerable citizens in our society.

“This rise in employer National Insurance Contributions, along with the lowering of the threshold to £5000, will have a profound effect on smaller providers who employ part-time staff.

“Along with the rise in the National Living Wage we are certain to see many of these providers at best reducing their staffing levels, cutting back on re-investment and staff development, and at worse leaving the market due to financial instability.”

  • On 18 December 2024, KCC and KiCA sent a joint letter to the Minister of State for Care setting out their concerns in full about the impact of Autumn Budget on the social care sector.  Read the letter.