Social care chiefs warn vital services could be axed if government hikes National Insurance
Share:
Royal Navy veteran John Pugh became lonely after the death of his wife, Anne. After a full working life which saw him rise to the rank of Lieutenant Commander, the 94-year-old rarely left his home. But the pensioner's outlook completely transformed when he began attending monthly tea parties organised by Re-Engage a charity tackling loneliness in later life.
He told the Mirror: "Before I came here I thought my life had ended and now it has started again – I felt I had come out of a dark tunnel into the light. Losing my wife was a tragedy, but here I can be around people of similar ages and experiences and we have a good old chat.".
Re-Engage is one of 18,000 not-for-profit social care providers in England offering a lifeline to folk like John. But their vital services are at risk of collapse if the government forges ahead with plans to hike National Insurance costs. Businesses currently pay a rate of 13.8% National Insurance on employees' earnings above £9,100 a year. But that will increase to 15% in April 2025, starting when wages reach just £5,000. On top of this, the national minimum wage for workers over 21 is set to rise to £12.21 an hour.
The changes – announced in Labour Chancellor Rachel Reeves' October Budget – will cost the independent social care sector some £2.8 billion in the next financial year. While support workers in need of a pay rise will welcome the news, it could be devastating for small organisations like Re-Engage which rely heavily on donations to survive.
