Nottinghamshire County Council’s Leader and the Cabinet Member for Adult Social Care have expressed their deep disappointment following the Government’s decision to overturn an amendment that would have exempted Adult Social Care providers from rising National Insurance contributions.
The amendment, originally put forward in the House of Lords, was rejected on Wednesday, 19th March, leaving social care providers—especially smaller organisations—facing significant financial pressure.
In response, Cllr Sam Smith, Leader of Nottinghamshire County Council and the Cabinet Member for Adult Social Care Cllr Jonathan Wheeler have written an open letter to Labour MPs, highlighting the damaging impact of the decision and urging immediate action to address funding shortfalls.
Cllr Sam Smith said:
“This decision will place enormous strain on the already fragile social care sector. Many smaller providers, which form the backbone of care in Nottinghamshire, will struggle to absorb these rising costs. At a time when we should be strengthening and stabilising care services, this policy will instead push providers towards financial breaking point, threatening the essential support our most vulnerable residents rely on.”
The financial implications are stark. Nationally, the Nuffield Trust has estimated that social care faces an additional £2.8 billion in costs due to inflation, pay increases, and National Insurance hikes. However, councils have only been provided with the means to meet 40% of this cost through the Council Tax social care precept and social care grant, leaving a significant shortfall.
In Nottinghamshire alone, the Care Association has calculated that at least £40 million is required to meet rising costs. Smaller providers, particularly those employing part-time staff—many of whom are women with caring responsibilities—are expected to be hit hardest by the changes.
Cllr Jonathan Wheeler, added:
“Nottinghamshire County Council has already committed £29 million to help social care providers cope with inflationary pressures, but this barely covers the rising costs imposed by Government policy. We are unable to invest in innovation or preventative care because we are constantly firefighting to keep services running. Meanwhile, health funding continues to be directed solely to the NHS, failing to recognise that social care plays a critical role in keeping people out of hospitals and living independently for longer.”
The Council is also facing increased financial strain due to cuts in Integrated Care Board (ICB) spending, higher NHS demand, and the growing need for support for hospital discharges and mental health services.
Both councillors are calling on MPs and Government to prioritise social care funding in the upcoming spending review.
“This situation is unsustainable. We need a fair and properly funded social care system, not short-term fixes that push the burden onto local providers and taxpayers. If the Government is serious about supporting the most vulnerable in society, it must act now,” the letter concludes.
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