Save the Date! CAA Resilience Webinar: Monday 16 th June 2025 at 2pm When to seek financial advice as a care provider? The care sector faces growing challenges, however with the right support at the right time, care providers can navigate these pressures, protect their operations, and unlock long-term values. Join us on 16 th June when we will hear from Leon Goddard, Senior Adviser - Markets and Commissioning at the Local Government Association and industry expert Johnny Abraham, Managing Director at J9 Advisory, specialist business advisory services. Further details and booking information to follow shortly

The government’s increase in the rate of employer National Insurance Contributions (NICs) from 13.8% to 15% came into effect at the weekend. As a result, the care sector, like many others, is facing detrimental financial pressures in trying to provide a high-quality care service. Our overall staff costs are projected to rise by at least 9%, thanks to the number of part-time staff we have and the low level of pay in the sector. We provide a regulated service based very heavily on personal interaction, so we can’t simply reduce staffing levels. Many care workers are at or close to minimum wage, so there’s no way to mitigate the increases by negotiating a lower pay rise. Providers would love the opportunity to pay their staff more, as they deserve it, but it simply cannot be budgeted for. These cost increases impact both self-funders and services contracted by local authorities or the NHS. For those paying for their own care this is leading to higher than normal price increases of 8% to 10%. This may be an unmanageable burden for some. Where the local authority or the NHS is the customer, we have no control over prices and the vast majority are unwilling or unable to cover the increased costs. The UK government has chosen not to provide local authorities with sufficient funds to cover the NIC increases for care that they commission – although they have where the care is provided in house. As a result, care providers who deliver care to the most vulnerable on behalf of local authorities are facing potentially existential challenges. The Care Association Alliance is urging the government to fix these funding shortfalls so that local authorities can properly support care providers. We urge HM Treasury to redress the unfairness and ensure that local authorities are able to support providers, and we call on the Department for Health and Social Care and the Ministry for Housing, Communities and Local Government ensure that this funding is passed on.

We at the Care Association Alliance are deeply disappointed by the actions of Labour MPs in the House of Commons yesterday (19 th March). A Liberal Democrat amendment to exempt health and care providers from a rise in National insurance Contributions was defeated by 307 votes to 182. As a result, on 6th April hard-pressed social care providers will be hit with increased bills they can’t afford. This vote is another damaging blow to our sector which could well leave many people without the care and support services they rely on, as it will push many care providers over the brink. The government has dismantled the core principles and ethos of the Care Act 2014 and abandoned millions of vulnerable people who depend on the care sector. The impact will also be felt by the NHS, which will experience even more difficulties in discharging patients from hospital. This is a dark day for adult social care, and we call on the Chancellor Rachel Reeves to think again and exempt health and care providers from this NIC increase. In the meantime care associations are ready to work with local authorities, care providers and NHS colleagues to do the best we can for those who rely on care and support in what will be very difficult times. Melanie Weatherley MBE, C0-Chair of the Care Association Alliance For media information please contact: Jez Ashberry Director Shooting Star jez@weareshootingstar.co.uk 01522 528540 / 07780 735071