Council to call for National Insurance exemptions for care providers

 

Release date: 24 March 2025

West Sussex County Council will call for all care providers, charities and hospices to be exempt from increases to their National Insurance contributions.

It follows a resolution at Full Council that supports the council’s work to raise with government serious concerns about the growing pressures in the adult social care sector.

At the meeting on Friday 21 March, county councillors debated a notion of motion on increases in the National Living Wage and employers’ National Insurance contributions.

They noted that the adult social care market has faced increasing pressures over the last few years, including workforce recruitment and retention, increasing costs, inflation, underlying demand growth and complexity of need.

The motion warns of the ‘fragility’ in the care market and the financial impact on those who fund their own care as well as ‘on local authorities whose budget is often unable to match the prices paid by self-funding customers.’

It predicts that this may lead some care providers to leave the market, with others forced to reduce their workforce, creating further staff shortages in many areas of care.

Ultimately, it warns that those who will be most affected will be our vulnerable adults, the ones to whom we have a duty of care to protect.

Watch the debate in full

See also: Carewise provides information and advice about care and support options and can guide people to the most suitable way of paying for long-term care.

West Sussex County Council has provided uplifts to its fees over the last three years and has shown ongoing commitment in support of the care market.

In the budget for 2025/26, the council last month agreed to increase spending on Adults Services by £28.4m to £292m.

While there has been some additional funding from government, it doesn’t meet what’s required, particularly in terms of covering the increases in the National Living Wage and employers’ National Insurance Contributions.

The notice of motion was proposed by Councillor Garry Wall, Chairman of the Health and Adult Social Care Scrutiny Committee and approved at Full Council on Friday 21 March.

Council Leader Cllr Paul Marshall, Cabinet member for Adult Services Cllr Amanda Jupp, and Cabinet member for Public Health and Wellbeing Cllr Bob Lanzer will continue to actively engage with government and local MPs to lobby for the exemption from National Insurance employer contribution increases for all care providers, charities and hospices.

Further information

Watch the meeting and read the background briefings: Full Council meeting Friday 21 March 2025

Read: County council leaders draw attention to serious challenges in adults’ social care

Budget 2025 to 2026

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Last updated:
24 March 2025
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