Social care has been exempt from the rising National Insurance Contribution, but support for the sector can’t end there. Fran Kirke, vice president of Care at OneAdvanced, explains.
The recent decision by the House of Lords to exempt the health and social care sector from the national insurance hike is a huge win for those closely involved in the sector. It both acknowledges the financial pressures faced by many care providers and offers some vital relief at a time when many are enduring significant operational strain. While, of course, it’s a positive step, it also warrants a sober reflection on the broader challenges that remain for the sector as a whole.
This exemption isn’t simply a financial reprieve; it’s an indication that the importance of social care is finally receiving the overdue recognition it deserves. We know just how crucial a role the care sector plays, providing essential services to some of the most vulnerable individuals in our communities, yet it has often been overshadowed by the broader health system. The economic pressures on local authorities and care providers have been accumulating for years, leaving limited capacity for resilience against additional costs like the proposed national insurance increases. Halting this policy’s progression in social care, at least for now, offers a much-needed pause for a sector already operating on precarious margins.
The exemption now returns to the House of Commons for consideration. And it’s worth noting that while the Lords have set an important precedent with their decision, the final outcome is by no means guaranteed.
A collective effort
The success of this exemption can be directly attributed to the collective efforts of organisations that work tirelessly to support and advocate for social care. Care England has been a consistent and vocal representative of care providers. Their ability to consolidate the voices of individual organisations has been crucial in bringing the needs of the sector to the attention of policymakers. The Chief Executive of Care England, Professor Martin Green OBE, has aptly described this as a “vital lifeline”, while rightly cautioning that we still await the House of Commons’ final decision.
Similarly, initiatives led by the Care Workers’ Charity and Providers Unite have ensured that the voices of care workers—the sector’s lifeblood—are not lost in larger policy debates. The Care Workers’ Charity have provided vital support to workers in the industry, many of whom have faced financial insecurity despite the essential nature of their roles. Their efforts clearly underline a broader issue; that the sustainability of the sector depends not only on the stability of care providers but also on the recognition and wellbeing of the workforce it employs.
And while the exemption is set to offer immediate relief for providers, it’s only one step in addressing the complex challenges facing social care. Funding pressures, workforce shortages, and systemic inefficiencies remain persistent struggles that demand a long-term approach to policy, regulation, and innovation.
An opportunity for change and the road ahead
This pivotal moment provides an opportunity to reconsider how we, as a society, view and support the delivery of care. The care sector does not operate in isolation. It is inextricably linked to the NHS and contributes directly to public health outcomes. Yet, its role too often goes underappreciated.
Looking ahead, organisations like Care England, the Care Workers’ Charity, and Providers Unite will continue to have pivotal roles to play in shaping the conversation and ensuring meaningful change. However, this responsibility does not rest on a handful of stakeholders alone. The care sector’s resilience and progress depend on a collective and sustained commitment to safeguarding its future. It is essential that we, as suppliers to the care sector, do more than sell to care providers, but support the efforts of those championing fair treatment for the sector and the care workers upon whom the service relies.
The Lords’ decision is a timely reminder that we must balance recognition with realism because change isn’t just about supporting our current social care sector, it’s about taking steps to ensure its long-term sustainability. It falls to all of us—policymakers, providers, and society at large—to meet this challenge with a thoughtful and pragmatic approach. Because the people who depend on care, and those who work tirelessly to provide it, deserve nothing less.
OneAdvanced is a leading software organisation that works throughout the UK.
Photo provided via Openverse
In related news:
Hospital admissions for eating disorders are skyrocketing, NHS figures show
Exposure to extreme heat associated with increased ageing, study finds