The Government is facing potential legal action over its imposition of increased National Insurance Contributions (NICs) on care providers.
Care England, a national representative body for independent care providers, has instructed Aston Brooke Solicitors to begin a judicial review on the controversial NIC increases announced as part of the Autumn Budget.
The organisation said that calling the Government ‘to account through the courts’ was a ‘last resort’ after refusing to listen to concerns from the care sector.
It comes after MPs last week voted against an amendment that would have seen GP practices, social care providers, hospices and pharmacies exempted from upcoming employer NIC hikes.
A judicial review would see a judge review the way in which the Government’s decision to increase NICs for care providers has been made.
Care England told Pulse the judicial review will be taken on the basis of it being led by care providers, but that it would welcome support from GP practices.
Care England chief executive Professor Martin Green said: ‘It is clear that the Government is not listening to the sector and has not acknowledged the body of evidence that shows the enormous impact these charges will have on care providers, and their ability to deliver care and support to the citizens who desperately need it.’
Professor Green added that the government ‘has launched a series of blows’ to the social care sector, showing a ‘fundamental lack of understanding’ about its importance.
He warned that the NIC rises announced in the Autumn Budget last year risked putting many organisations ‘on the brink of bankruptcy’.
Similar concerns have been raised by GP practices, with the BMA predicting that the Budget tax changes will cost surgeries an extra £180m-200m nationally.
GP leaders told Pulse earlier this month that the recent GP contract announcement – equating to almost £800m additional investment in the global sum – is intended to cover any extra costs from NICs, with no further support announced since then.
Employer NI contributions (NICs) were increased from 13.8% to 15% in the budget, with changes expected to start from next month.
Last month, peers in the House of Lords voted in favour of an amendment to legislation which would freeze NICs for primary care employers at 13.8% – which was later voted down by MPs.
A Department of Health and Social Care spokesperson said: ‘We inherited an extremely damaged economy, NHS and social care sector.
‘We are turning this around through our Plan for Change and have already taken action to deliver an extra £26bn for health and social care.’
They also pointed towards its independent commission to build ‘cross-party consensus for a National Care Service to build a system fit for the future that is fair and affordable for all’.
A version of this story was first published on our sister title Nursing in Practice.
I do not understand something here :
Private care providers can just increase the price they charge the customers – mostly the NHS and Social Services Departments – but GPs cannot increase fees, because Government controls their income.
I welcome the care providers raising a judicial review, but isn’t it ironic that the PM, being a lawyer, didn’t manage to avoid such a challenge? Or was it another ploy, cynical me thinks, to raise more income for the legal profession and the Judges involved in the dispute? Even the Lords appear to have been more sensible and rational.
I still do not understand what prevents the Government from changing tax brackets and tax rates for 3 years, to raise more from higher income earners and big business rolling in the profits?
George Osborne Ed Balls have suggested Quite an interesting idea with regards to pension contributions and taxation- proposal is to pay tax on pension contributions at the time there made and no tax When the pension is received-A little bit like an ISA- the government benefit from a boost to tax coffers now individuals benefit 40 to 50 years with tax free pensions