Why the National Insurance increase means this dementia patient could lose her home support

Care providers have warned the government that the UK social care system is "at breaking point" as it struggles with rising demand and high costs. It comes as thousands of care and support providers, and some of those who rely on the service, plan to stage a demonstration in central London to urge the government to give more support to the ailing sector.

The planned rise in National Insurance contributions for employers combined with the increase in the national minimum wage, set to come into effect in April, could lead to some providers going out of business, according to Providers Unite, a coalition of social care organisations campaigning for long-awaited social care reform.

Research by the independent think tank The Nuffield Trust estimates that the rises, announced by Chancellor Rachel Reeves last October, could cost the sector an extra £2.8bn a year. The government has already announced an additional £600m to help support the social care sector.

But the chair of the National Care Association, Nadra Ahmed, said the proposed increases will cancel out that government support. "It is inconceivable that politicians fail to understand that a lack of investment will impact heavily on both the NHS and local government," she said.

"It is this lack of recognition or investment which has led to a watershed moment at a time when the need for our services continues to grow. The sector is at breaking point.". Ms Ahmed said increased costs had not kept pace with funding levels and warned some care providers could end up bankrupt.

Jane Jones, owner of Applewood Support, a homecare provider in Nuneaton, Warwickshire, said her costs will rise by and estimated £6,000 a month when the National Insurance rise comes into force. "I felt sick when I heard the chancellor announce the rise in NI," she told Sky News.

"It's not feasible. I've had to make cuts in the office. We've got rid of two personnel because we just can't afford it. It's an attack on growth.". The care sector employs nearly two million workers and supports more than 1.2 million people. Pensioners Shiela and Paul Banbury have been married for 59 years and rely on Applewood to care for 82-year-old Sheila at home after she was diagnosed with Alzheimer's in 2018.

Paul, 77, says if they could not get home care Shelia would have to move into a care home. "It would be very difficult after such a long time together. We want to be able to stay together in our home.". Most care providers receive a fixed price for care, set by local councils. That means that rises elsewhere in the system are difficult to manage.

"We cannot increase our costs like the supermarkets can and are limited to what the government and councils can pay us," says Ms Jones. "So if they can't pay us the right amount of money, we're just going to go close our doors. And I think that's what's going to happen come April.".

Be the first to get Breaking News. Install the Sky News app for free. Follow our channel and never miss an update. Mike Padgham, chair of The Independent Care Group, urged the chancellor to review her budget measures and make care providers exempt from the National Insurance rise in the same way that the NHS is.

"We have suffered for more than 30 years and enough is enough. People who rely on social care and those who deliver it deserve better," said Mr Padgham. The government has published plans to reform the social care system, aiming to establish a National Care Service designed to bring it closer to the NHS.