Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, if he will make an estimate of changes to the level of operating costs for (a) end-of-life nursing, (b) mental health support services, (c) home care, (d) assisted living facilities and (e) other social care and support services due to increases to employer National Insurance contributions and the forthcoming increase in the National Living Wage from April 2025 in Devon.

We took necessary decisions to fix the foundations in the public finances at Autumn Budget 2024, which enabled the Spending Review settlement of a £22.6 billion increase in resource spending for the Department from 2023/24 outturn to 2025/26.

The Employer National Insurance rise will be implemented from April 2025. The Government will provide support for departments for additional Employer National Insurance Contributions costs for public sector employers only, and the level of funding will be confirmed at main estimates shortly. The approach to National Health Service commissioned end-of-life nursing, community and mental health support services has been set out in NHS Planning Guidance and will be subject to local negotiation with providers.

For staff on Agenda for Change (AfC) dynamic contracts, as the 2025/26 pay round will not have concluded by 1 April 2025, it will be necessary to implement an increase to AfC entry pay from 1 April 2025 to maintain compliance with the National Minimum Wage. This will be an advance payment of the 2025/26 pay recommendations, and the final pay award will be given following the conclusion of the Pay Review Body process. This advance will apply to approximately 250,000 AfC staff across band 1 (closed grade), both pay points in band 2 and the entry point of band 3 to ensure NHS pay sits above the National Living Wage. These pay points will receive an advance pay uplift of 28p per hour, representing a temporary 2.3% pay uplift.

The Government considered the cost pressures facing adult social care as part of the wider consideration of local government spending within the Spending Review process. The Government is making available up to £3.7 billion of additional funding for social care authorities in 2025/26, which can be used to address the range of pressures facing the adult social care sector. Overall, core local government spending power will increase by 6.8% in cash terms in 2025/26.