06/02/2025 Delphi Care Solutions - Are you concerned about the upcoming National Insurance Increases?
The upcoming changes to National Insurance Contributions (NICs), set to take effect on 6 April 2025, could have a significant impact on care providers already grappling with rising costs.
The government’s policy will:
- Lower the Secondary Threshold: Employers will start paying secondary Class 1 NICs at £5,000 per year, down from the current £9,100.
- Increase the NICs Rate: The secondary Class 1 NICs rate will rise from 13.8% to 15%.
These changes mean higher employment costs for care providers, many of whom already operate on tight financial margins. The Association of Directors of Adult Social Services (ADASS) estimates that, when combined with the rising National Living Wage, these changes could cost councils up to £1.8 billion in fees paid to care providers.
The Nuffield Trust has warned that without financial support from the government, some care homes may become financially unviable, leading to service reductions or even closures.
At Delphi Care Solutions, we understand the pressures facing care providers. If you need support navigating these challenges, whether through business reviews, financial strategy, or operational efficiencies, our team of experts is here to help.
For guidance on how to manage these upcoming changes, visit out our website or call our team today on 0330 133 3002.