The Autumn Budget: Bethphage’s Verdict: A Crushing Blow for the Care Sector.

The recent Autumn Budget has dealt a crushing blow for an already depleting Social Care Sector, highlighting the urgent need to address its impact.

Rising financial pressures, including mandated wage increases and higher National Insurance contributions from April 2025, present a significant challenge to the sector. Without action, there is a risk to the stability and sustainability of care that many vulnerable people rely on every day.

From April 2025: 

  • National Living Wage will rise by 6.7% to £12.21.
  • Employer National Insurance (NI) contributions will increase to 15%.
  • The threshold for when the NI charge starts will be lowered from £9,100 to £5,000 per year.

The NI changes will result in additional costs of £615 per employee who work more than 14 hours per week. 

Whilst we welcome the increase of national living wage; in the context of social care it must be properly funded through Local Authority budgets, to avoid placing undue strain on care providers. These rising costs put significant financial pressure on not for profit, support providers like Bethphage who, unlike businesses in other sectors (e.g. leisure and retail), are unable to adjust prices to cover these increased costs as we work within fixed fees set by Local Authorities.  

What does this mean for Bethphage?  

Bethphage will have to shoulder additional costs of over £750,000 (this does not take into account other inflationary increases.) 

Why does this matter? 

Social care should be everyone’s business because it plays a critical role in supporting the well-being and dignity of millions of people, including those with disabilities, older people, and individuals with complex needs. It ensures that people receive the help they need to live fulfilling lives, often enabling them to remain in their homes, maintain independence, and stay connected with their communities. 

What do we want to happen?   

The government now has an opportunity to engage with the care sector and reconsider its decision in light of the challenges posed by these rising costs, which follow 14 years of austerity.  

We feel the government does not fully grasp the pressure on social care. While £22.6 billion has rightly been allocated to the NHS, social care remains overlooked with only £600 000 to be spread across 317 local authorities. This falls far short of what is truly required and will not cover the costs of the NLW and NI increases.  The government has shielded the NHS and the rest of the public sector from the NI hike, we call on them to do the same for social care.  The care sector employs as many staff as the NHS and has faced similar challenges since 2010. A properly functioning and adequately resourced social care is vital for the NHS sustainability. 

We feel the sector has largely been left to manage alone and are concerned about the future of social care and the quality of services that can be provided. The sector is already under significant strain, and these new financial pressures could push it to a critical point. Without sufficient funding, vulnerable individuals may not get the support they deserve, affecting their quality of life and well-being. 

What can you do to help? 

We urge the community to stand with us in advocating for fair funding. Contact your local MP and representatives and voice your concerns. Together, we must press for a realistic way forward to support the needs of our social care sector and everyone who uses it. 

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