Brunelcare, a Bristol-based charity caring for older people in their own homes, Care Homes, and Extra Care Housing sites, is concerned about the Autumn Budget and the increase to employers’ National Insurance contributions and the knock-on effect this will have upon the charity.
Whilst there was good news in last week’s Autumn Budget for investment in social housing, the NHS, and other public services, Brunelcare estimates that the change in National Insurance will add almost £1 million to its staffing costs, creating significant financial pressures at a time when the charity and other social care providers are already under intense strain.
Brunelcare employs 1,100 dedicated colleagues to provide care, housing, and support to 2,000 adults across the South West region each week. Staffing is by far the charity’s largest cost, and more than three-quarters of employees work in social care and support roles. Their initial analysis shows that the 1.2% rise in the rate of employer National Insurance Contribution plus the reduction in the threshold, will mean an almost £1 million increase in Brunelcare’s costs, which is equivalent to 3.7% of its current gross salaries bill.
Oona Goldsworthy, Chief Executive of Brunelcare, said: “The lack of funding to support wage increases, in addition to the new financial pressures announced in the Autumn Budget, make it increasingly difficult for providers like us to continue our commitment to paying colleagues the Real Living Wage.
We are urging the Chancellor to review the Budget’s impact on the social care system, especially for charity providers. Either local governments must be given sufficient resources to increase fee levels in social care contracts to cover the additional costs created by the Budget’s ‘tough choices,’ or charitable social care and supported housing providers such as Brunelcare should be exempt from the employer National Insurance increase and new thresholds.
Increasing taxes aims to strengthen the public services, which is welcome, however the Budget is largely silent about social care and supported housing – a core pillar of a thriving and supportive society. It is unclear how the additional £25 billion funding for the NHS will relate to social care.”
In addition, Brunelcare’s wage bill will increase by a further £900k from April 2025, as a result of the 5% real Living Wage rise. Brunelcare first committed to becoming a real Living Wage employer in 2022 and has continued to do so ever since, because they believe championing fair pay for its social care colleagues is the right thing to do, and is vital in sustaining a viable workforce.
The combined effect of these unfunded measures means that Brunelcare will start the next financial year with a 7.4% increase in staffing costs. The charity has already heard that Local Authorities will not be able to increase their funding to support the NI increases as they will only receive a real-term increase in spending power of around 3.2% for its services – well short of the sum needed to meet the increased costs the Autumn Budget has imposed on all care providers.
Visit the Brunelcare website here: https://www.brunelcare.org.uk/
