Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to paragraph 2.40 of the Autumn Budget 2024, published on 30 October, what recent discussions she has had with the Secretary of State for Health and Social Care on the potential impact of changes to National Insurance contributions on (a) hospices, (b) GPs and (c) care homes.

Resource spending for the Department of Health and Social Care is set to increase by £22.6 billion in 2025-26 compared to 2023-24 outturn, providing a real-terms growth rate of 4% for the NHS, the largest since before 2010 excluding Covid-19 years. The Government will support local authority services through a real terms increase in core local government spending power of around 3.2%, including at least £600 million of new grant funding to support social care.

The government recognises the need to protect the smallest businesses and charities, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year. Our tax regime for charities, including exemption from paying business rates, is among the most generous of anywhere in the world with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.

The Budget will provide support for government departments and other public sector employers for additional Employer NICs costs only. Private sector firms or charities including hospices or social care providers that are contracted by central or local Government will not be exempt from these changes. General Practitioners are independent contractors and therefore will not be exempt from these changes.

This is consistent with the approach to previous Employer NICs changes, as was the case with the previous Government’s Health and Social Care Levy.

DHSC will confirm funding for General Practice for 25/26 as part of the usual GP contract process later in the year, including through consultation with the sector.