Services will shut, Mencap warns on National Insurance rise

by | Dec 10, 2024 | Health

BBCA leading charity that supports people with learning disabilities says it may be forced to stop running at least 60 of its services as a result of increasing National Insurance costs.Mencap is one of a growing number of care organisations warning they will have to axe vital services because of the impact of the Budget.Businesses – including charities – 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, instead starting when wages reach £5,000.Mencap says the rise will cost it £5.3m every year.The government also announced an increase to the national minimum wage during the Budget – with hourly rates for over-21s set to go up to £12.21 an hour. That will cost the charity a further £6.7m, it says.Combined with having to increase wages for other workers as a result of the minimum wage rise, the charity estimates the changes will cost up to £18m a year.Local authorities, who pay for most social care for older and disabled people, say the rising costs for the sector are “insurmountable”.The government says it is tackling the challenges facing adult social care, as well as providing it with extra money as part of £3.5bn in additional funding for councils in England next year.Round-the-clock supportTwenty-six people with a range of learning disabilities live at Churchfields, in Essex. It is one of 600 services run by Mencap across England, Wales and Northern Ireland.While Churchfields is not under threat, contracts to provide other similar services could be ended, Mencap says.Among the residents at Churchfields are Barry and Betty. Both use wheelchairs and need round-the-clock support. Betty can speak a few words, but Barry is non-verbal. He often relies on sign language and answering yes/no questions written for him on a white board to communicate.But with both, their faces and reactions can tell their story more eloquently than words.Their faces light up when they see each other. Betty lifts Barry’s hand to kiss it and they both smile and laugh. An engagement ring glimmers on Betty’s left hand – staff helped Barry propose to her.Teeto Adegbenro, who is one of Barry’s care workers, is passionate about his work.”The quality of life you give to these people is the experience they have in their life,” he says.It takes 50 staff to support the people at Churchfields to live full lives. Mencap employs about 7,500 staff across all its services. Many care workers are on low pay. October’s Budget increased the national minimum wage (NMW) – a move that was expected and welcomed by those running care services in a sector where it is hard to recruit.However, care organisations say the changes to National Insurance contributions (NICs) will have a big impact – particularly on social care, where many people work part-time and were previously below the threshold to pay the tax.Mencap says the NICs increase will add at least £615 to the annual costs of employing each of its staff members.When that is combined with the ri …

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