Warning Tax Rises Could Force Care Homes To Close

The Liberal Democrats person called connected nan authorities to exempt societal attraction from nan emergence successful National Insurance.

The statement said nan chancellor had provided other backing for nan NHS and different nationalist assemblage organisations to screen nan costs of nan taxation emergence - but because nan immense mostly of attraction providers are backstage they would not use from this.

Speaking to BBC Radio 4's World astatine One programme, Health Secretary Wes Streeting confirmed nan NHS would beryllium refunded for nan emergence successful National Insurance contributions.

However, pressed connected whether backstage societal attraction companies would still person to salary nan accrued rate, he pointed to nan other £600m allocated for nan sector.

"The chancellor has taken into relationship those pressures erstwhile making backing decisions," he added.

Care England, which represents big societal attraction providers, said without further support nan assemblage was successful "unprecedented danger" and nan closure of services that were nary longer viable was likely.

It said nan £600m successful backing was "a driblet successful nan water compared to nan staggering £2.4bn successful rising costs associated pinch costs increases and employer nationalist security contributions".

Mike Padgham runs 5 residential and nursing homes successful North Yorkshire supporting older and abnormal people.

He has 210 staff, and his existent costs measure is £5.3m a year. He estimates each period nan summation successful employers' National Insurance will costs an other £5,000, and nan summation successful nan minimum costs will adhd different £25,000.

Most of his residents are funded by nan section authority and Mr Padgham says he will person to inquire for higher fees.

But attraction providers person agelong complained financially squeezed councils do not salary capable to screen nan existent costs of care.

Mr Padgham, who chairs nan Independent Care Group, which represents independent providers, said that arsenic a labour-intensive assemblage an summation successful worker costs was "the past point societal attraction needed".

"For a batch of providers this will spot existential unit connected them and could good push immoderate retired of business, unless it is matched by other backing to those who committee attraction and location was small motion of that," he said.

He said nan other £600m for societal attraction would person "little aliases nary impact" erstwhile shared betwixt 152 section authorities and children's services.

He added: "Any other backing that mightiness scope providers will beryllium wiped disconnected instantly by nan increases successful National Insurance and minimum salary which will together heap further unit connected societal attraction providers."

Liberal Democrat leader Sir Ed Davey said nan summation successful National Insurance "risks worsening nan NHS situation by hiking costs for attraction providers and pushing immoderate to nan brink".

He added: "It conscionable shows that yet again nan authorities seems to person forgotten astir care."