Public anger towards the government’s upcoming increase in employer National Insurance contributions—set to take effect on April 1st—has reached new heights. With just weeks to go, the care sector took to Westminster in protest, arguing that this tax hike unfairly punishes an industry already underfunded and under-resourced.
Much like the NHS and His Majesty’s Prison Service, adult social care is at breaking point. For many state-funded providers, this could be the final straw. So, what impact will the tax and minimum wage increases have—and what does it mean for Visiting Angels?
The Doomsday Scenario
Many care providers may be forced to shut down—and some already are. Local authority funding is not expected to rise in line with tax and wage increases, leaving firms already operating on razor-thin margins facing insolvency.
Those that survive will do so by raising prices or resorting to shrinkflation—offering shorter visit lengths while charging the same. Ultimately, the biggest losers will be the clients: vulnerable individuals who will see both the quantity and quality of their care decline while their weekly bills rise.
A Brighter Side?
A reduced number of providers could simplify care procurement for local authorities and NHS trusts. The sector is widely considered fragmented and inefficient, with too many small independents competing against each other. Driving some out of the market may, in fact, be an intended consequence of Reeves’ budget.
What About Us?
Despite the prevailing negativity in the care sector, this shift presents an opportunity for Visiting Angels. As an almost exclusively private and self-funded care provider, April’s increases pose less of a concern for us.
We will be here to pick up the slack. If and when state-funded providers collapse, we have a dedicated team of carers ready to support self-funding clients who find themselves without care. For us, it’s business as usual. We remain committed to supporting individuals with home care in the North London community while continuing our partnerships with local NHS trusts and primary care providers.
If you or a loved one needs care, don’t wait until a crisis hits—reach out today. We’re here to help.