Social Care and Special Education Charities: Employer National Insurance Contributions

Baroness Grender Excerpts

Monday 9th June 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question. Of course the Government recognise the important role that charities play in our society as a trusted and independent partner to the public sector in helping deliver vital public services. We also recognise the work done by unpaid careers and welcome this week’s Carers Week as an opportunity to pay tribute to the invaluable work that they do throughout the UK. As I said in my opening Answer, we had to take a number of very difficult but necessary decisions, including on employer national insurance, to fix the public finances and restore economic stability. In doing so, though, we recognised the need to protect the smallest businesses and all charities, which is why we have more than doubled the employment allowance to £10,500, meaning that more than half of businesses, including charities, either gain or see no change in the amount that they will pay. As I also said in my Answer, we will continually monitor and assess the impact and effect of those policies.

[Baroness Grender (LD)]

My Lords, does the Minister agree that the Government have already published several comprehensive spending review announcements over the past week? Does he further accept that social care funding is inextricably linked to the NHS’s recovery? Will he therefore use this opportunity to reassure the House that social care will not be cut in the comprehensive spending review?

[Lord Livermore (Lab)]

I agree with the noble Baroness’s first statement of fact; we have already made several spending review announcements. She will know that the Government are making available so far £3.7 billion of additional funding for social care authorities in 2025-26, including an £880 million increase in the social care grant. This is part of an overall increase to local government spending power of 6.8% in cash terms. As for future years, she will have to wait for Wednesday to find out the details of the spending review.