Getty ImagesGPs, nursing homes and hospices have expressed concerns about the impact of increases in employer national insurance contributions announced in the Budget.
The NHS and other public sectors are exempt from the tax increase, but this does not include private care homes or hospices that provide NHS services.
There is also confusion over the impact on GPs, many of whom are small businesses.
The Department of Health and Social Care said further details for GPs would be confirmed in due course, but the Finance Minister told Question Time they would have to pay the cost of the levy increase.
Dr David Wrigley, a GP and vice-president of the British Medical Association, said the impact of the tax increase would be “huge”.
He said on
Mike Padgham, chairman of the Independent Care Group, which represents social care providers, said the sector had been “left out in the cold”.
“In total we now employ 1.7 million people, more than the NHS. So these extra costs will hit charities and private sector providers at a time when we are being squeezed by local authorities who are themselves cash-strapped.
“So if we pay more, we have to charge more.”
Hospices UK said organizations providing NHS services should be treated the same as NHS agencies.
“Paying a fair wage to talented and compassionate hospice staff makes up the largest part of operating costs, so it is disappointing that the Chancellor has not removed charities or NHS service providers who are not formally part of the NHS from yesterday’s announcement. Exemptions from National Insurance.
On Thursday, Health Secretary Wes Streeting acknowledged that many healthcare providers would be affected by the rise in employer NI.
Asked whether social care providers would be protected, he told the BBC’s One World program: “I’m working through that now and over the next few weeks I’ll be setting out what we can do about it. What are the faster measures to solve this problem.
He pointed to the extra £600 million allocated to social care in the budget.
care team Already said this is not enough And will “disappear immediately” due to increased personnel costs.
For GPs, Darren Jones, chief secretary to the Treasury, told Question Time on Thursday that GPs must pay NI contributions to their employers.
“GP surgeries are private partnerships and are not part of the public sector,” he said. “So they have to pay them.”
But he said “the amount they pay will depend on size” as the government designed the new system “to protect the smallest businesses”.
“The OBR confirmed that more than 50% of businesses will either not pay more than they already pay, pay less or not at all as we increase the threshold, allowance from £5,000 to £10,500 per year,” he said.
He added: “For the wider public sector… we will look through the system to understand the impact on different public services.”
The Department of Health said it would work closely with the Treasury to ensure the public sector was appropriately compensated.
Chancellor of the Exchequer Rachel Reeves believes raising employer national insurance premiums would be “difficult” but necessary to fund public services including the NHS.
Of the £40bn of tax rises proposed in her budget, £25bn will come from increases in national insurance.
From next spring, employer contributions will rise from 13.8% to 15% for workers earning more than £175.
A health department spokesman said: “The Chancellor has announced £22.6 billion in funding support for the NHS to get back on its feet, along with an additional £100 million to fund around 200 GPs across England. Clinic upgrades.
“We will also hire an extra 1,000 GPs for the NHS by the end of the year, we have announced contract upgrades for GPs and clinic staff and we will ensure clinics have the resources they need to provide the highest quality care to patients.”
