Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, whether he has made an assessment of the potential impact of an increase in staffing costs in voluntary, community and social enterprise (VCSE) organisations on their ability to provide services for the NHS through integrated care systems.

Within integrated care systems, integrated care boards (ICBs) have a statutory responsibility to arrange and provide healthcare services that meet the needs of their populations. Additionally, ICBs work closely with the voluntary, community, and social enterprise (VSCE) sector, which includes the commissioning and delivery of services and, in some cases, by appointing representatives from the VSCE sector to their boards.

The Department has not made an assessment of the potential impact of an increase in staffing costs in VSCE organisations. VCSE organisations, as independent organisations such as charities and social enterprises, are free to develop and adapt their own terms and conditions of employment, which includes pay scales.

It is for those organisations to determine what is affordable within the financial model they operate, and how to recoup any additional costs they face if they choose to utilise the terms and conditions of National Health Service staff on the Agenda for Change contract.

NHS England has issued guidance on the implementation of the 2024/25 pay awards, which is available at the following link:

https://www.england.nhs.uk/publication/revenue-finance-and-contracting-guidance-for-2024-25/

The Government has also more than doubled the Employment Allowance to £10,500, meaning that more than half of businesses, including charities, with National Insurance contribution (NIC) liabilities will either gain or see no change next year. The Government is also expanding the eligibility of the Employment Allowance by removing the £100,000 eligibility threshold, to simplify and reform employer NICs so that all eligible employers now benefit. Employers will also continue to benefit from employer NIC reliefs, including for hiring those that are under 21 years old and apprentices under 25 years old, where eligible.