GPs, care homes and hospices express concerns over Budget tax rise

GPs, care homes and hospices have expressed concerns about the impact of the increase in employer national insurance contributions announced in the Budget.
The NHS and the rest of the public sector are exempt from the tax rise – but this does not cover private care homes or hospices which provide NHS services.
There is also confusion over the impact on GPs, many of whom are run as small businesses.
The Department of Health and Social Care said further details for GPs would be confirmed in due course – but a Treasury minister told Question Time they would have to pay the tax rise.
Dr David Wrigley, a GP and deputy chairman of the British Medical Association, said the impact of the tax rise would be “significant”.
He said on Twitter that many people are “already in financial distress” and called for “quick announcement of full reimbursement”.
Mike Padgham, chairman of the Independent Care Group, which represents social care providers, said the sector had been “left out in the cold”.
“We now collectively employ 1.7 million people – more than the NHS. So those extra charges are going to hit charities and private sector providers alike at a time when we are put under pressure by local authorities, whose The pass itself is short of cash.
“So if we pay more, we have to charge more.”
Hospices UK said that those providing NHS services should be treated in the same way as NHS bodies.
“Paying brilliant, compassionate hospice staff a fair salary makes up the largest share of operating costs, and so it is disappointing that the Chancellor did not exempt charities, or providers of NHS services that are not formally part of the NHS, yesterday. “Get up from National Insurance,” it said.
On Thursday Health Secretary Wes Streeting admitted there were a number of healthcare providers who would be affected by the NI increase for employers.
Asked whether social care providers would be protected, he told the BBC’s World at One programme: “I’m working on it now and I’ll say more about that in the coming weeks so we can do that more quickly.” “What can we do with this?” “Bringing about the change in focus of NHS investment spending from hospitals to primary communities is what I have wanted to see for some time.”
He pointed to the extra £600m allocated to social care in the budget.
care group Said it won’t be enough And it would be “quickly killed” by increased staffing costs.
As for GPs, Chief Secretary to the Treasury Darren Jones told Question Time on Thursday that GPs must pay employer NI contributions.
“GP surgeries are privately owned partnerships, they are not part of the public sector,” he said. “So they have to pay them.”
But he said “how much they pay will depend on size”, as the government had designed the new system “so it protects the smallest businesses”.
“The OBR has confirmed that over 50% of businesses will either pay no more than they already pay or they will pay less or nothing at all because we increased the threshold, the allowance, from £5,000 to £10,500 per “Given this year,” he said.
He said: “For the wider public sector… we are going to work through a system that understands the implications for different public services.”
The Department of Health said it would work closely with the Treasury to ensure fair compensation for the public sector.
Chancellor Rachel Reeves has argued that increases to National Insurance were “difficult” for employers but necessary to fund public services, including the NHS.
He has announced a £40 billion tax increase in his budget, of which £25 billion will come from a national insurance increase.
From next spring, the rate at which employers pay contributions on workers’ earnings above £175 will rise from 13.8% to 15%.
A Department of Health spokesperson said: “The Chancellor has announced a £22.6bn funding boost to get the NHS back on its feet, as well as an extra £100m to upgrade almost 200 GP surgeries across England Is.
“We will also appoint an additional 1,000 GPs across the NHS by the end of this year, we have already announced a contract upgrade for GPs and practice staff, and we will ensure practices have the resources to provide the highest quality care to patients. Have the necessary resources.”