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Issue 229
“Rethink” Tax Increases Chancellor Urged... As Care Sector Faces Severe Challenges
Chancellor Rachel Reeves is facing increasing pressure to exempt the care sector from her April tax raid as a growing coalition of care leaders back a radical plan to rescue their sector from planned National Insurance (NI) rises. Following the chancellor’s autumn budget in October 2024 analysis by Nuffield Trust revealed that the NI changes coming into effect in April will cost the adult social care sector over £940m this year.
Taken together with the planned increases to National Minimum Wage rates, the Nuffield Trust said that the 18,000 independent organisations providing adult social care in England will be faced with increased costs of an estimated £2.8bn this coming financial year. A cost few providers can afford without a reduction in their frontline services.
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