Concerns have been raised by general practitioners, care homes, and hospices regarding the effects of increased employer National Insurance contributions following the recent Budget announcement. While the NHS and other public sector entities are exempt from this tax hike, private care homes and hospices that deliver NHS services do not receive the same consideration.

There is also uncertainty surrounding how this change will affect GPs, many of whom operate as small businesses. The Department for Health and Social Care indicated that more information for GPs will be provided soon; however, a Treasury minister confirmed during a recent Question Time that they would be liable for the tax increase.

Dr. David Wrigley, a GP and deputy chair of the British Medical Association, expressed that the impact of this tax rise would be significant. He highlighted on social media that many practitioners are already facing financial difficulties and urged for an immediate announcement regarding full reimbursement.

Mike Padgham, chair of the Independent Care Group representing social care providers, stated that the sector feels neglected in this situation. He pointed out that social care employs over 1.7 million people, surpassing the NHS workforce. Consequently, increased charges will heavily burden charities and private providers already strained by local authorities dealing with their own budget constraints. “If we incur higher costs, we’ll have to pass those costs onto our clients,” he explained.

Hospices UK emphasized that organizations providing NHS services should receive equal treatment to NHS entities. They noted that compensating dedicated hospice staff fairly constitutes a significant portion of operational costs and expressed disappointment that charities and non-NHS service providers did not receive an exemption from the National Insurance increase.

Health Secretary Wes Streeting acknowledged that several healthcare providers would be impacted by the rise in employer National Insurance contributions. He mentioned on the BBC’s World at One program that he is actively considering protections for social care providers and confirmed an additional £600 million allocated to social care in the Budget.

However, care groups contend that this amount would quickly be consumed by rising staffing expenses. Regarding GPs, Chief Secretary to the Treasury Darren Jones clarified during Question Time that GP surgeries are privately owned partnerships and thus subject to these contributions. He noted that the amount owed would vary based on practice size due to a new system designed to shield smaller businesses.

The Department for Health affirmed its commitment to collaborating with the Treasury to ensure fair compensation for public sector services. Chancellor Rachel Reeves characterized the National Insurance increase as challenging yet essential for funding public services like the NHS. The upcoming rise will elevate employer contributions from 13.8% to 15% on earnings exceeding £175 starting next spring. Additionally, it was announced that £22.6 billion would be allocated to support NHS recovery efforts alongside plans to hire more GPs by year’s end.