Care Workers: Employers' Contributions

(asked on 12th December 2024) - View Source

Question to the HM Treasury:

To ask His Majesty's Government what consideration they have given to exempting care providers from the increase in National Insurance contributions.


Answered by
Lord Livermore Portrait
Lord Livermore
Financial Secretary (HM Treasury)
This question was answered on 19th December 2024

Raising the revenue required to fund public services and restore economic stability requires difficult decisions on tax, which is why we are asking employers to contribute more.

The Government will provide support for departments and other public sector employers for additional Employer National Insurance costs. This does not include support for the private sector, including private sector firms contracted by central or local government.

This is the established approach successive Governments have taken to supporting the public sector with additional Employer National Insurance contributions.

The government is providing a real terms increase in core local government spending power of 3.5%, in 2025-26. To support social care authorities to deliver these key services, in light of pressures, we announced at the provisional Settlement a further £200 million for adult and children’s social care. This will be allocated via the Social Care Grant, bringing the total increase of this grant in 2025-26 to £880 million and taking the total Social Care Grant funding to £5.9 billion in 2025-26.

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