Government to set out NI hike funding arrangements for GPs ‘by the end of the year’

The Prime Minister has responded to concerns about the impact of the Budget changes on GP practices, saying that ‘funding arrangements’ will be set out ‘by the end of the year’.

The DHSC had previously told Pulse that further detail on funding for increased national insurance contributions for GPs will be confirmed in due course, and that it is working with the Treasury to ensure appropriate compensation.

But now Sir Keir Starmer has said that funding arrangements in relation to this will be made by the end of the year, according to PA news agency. While taking questions from reporters on the way to the G20 summit in Brazil, he was asked whether he could guarantee that GPs would be protected from extra costs.

He said: ‘We had to take tough decisions in the Budget in order to stabilise the economy, we did that by making sure we didn’t hurt the pay packet of working people, so they don’t see that in their pay packet at the end of the month.

‘And we invested hugely in health in particular, huge investment in health but also in education and housing.

‘I think they’re the right priorities but funding arrangements will be set out by the end of year.’

Pulse has asked Nr 10 whether he was referring to the end of the calendar year or the financial year.

The changes announced in the Budget have caused significant concern among the profession, with the BMA warning that GP practices need to be reassured ‘swiftly’ that increased tax costs will be ‘resourced’ by the Government.

Since the chancellor’s budget announcement at the end of last month, the Treasury confirmed that funding has been set aside to protect the spending power of the public sector, including the NHS, from the direct impacts of these changes.

But GPs have been excluded from this, as the funding to offset the increased NICs costs does not include support for the private sector, including ‘private sector firms contracted out’ – with GPs generally operating as independent businesses for this purpose according to the Treasury.

Earlier this month, Pulse revealed that the changes could cost GP practices across England a total of £260m, following the announcement of the employer NICs rate increasing to 15%.

Last week, 40 politicians from across the House of Commons and the Lords also signed a joint letter to the chancellor calling for a reversal of the increase in employer NI contribution for GPs.

The letter said: ‘For some GPs, this will result in tens of thousands of pounds of additional costs, which could otherwise have been more appropriately used to employ clinical staff.

‘To compound matters the Government has failed to set aside monies to compensate general practices, who are ineligible for Employment Allowance.

‘Consequently, many will simply not be able to afford thee increases and will have to reduce their staffing and services accordingly, thereby impacting upon patient care.’

The Commons’ Health and Social Care committee has also written to the health secretary demanding answers on the impact of the NIC increases for GPs.

The committee’s chair, Oxford West and Abingdon MP Layla Moran, asked Wes Streeting to share what analysis or modelling has been conducted by the Government on the impact of the increase on non-public sector health providers, including GPs.

Mr Streeting has previously said he is ‘well aware of the pressures’ on GPs and that ‘allocations’ for the year ahead had not yet been made.

Alongside tax hikes, the chancellor also announced £100m ‘earmarked’ for GP estates upgrades in the Autumn Budget statement.

For Pulse’s analysis of the budget, read: A Budget seemingly designed to punish GPs