Gray warns over ‘negative impact’ on care sector of national insurance hike

Health Secretary Neil Gray is calling on the Treasury to act on “concerns” from the social care sector about the forthcoming increase in national insurance contributions.

The rise takes effect in April, and Mr Gray said he is “deeply concerned” about the impact on social care.

He was speaking after meeting senior figures from the sector and representatives from integrated joint boards – which bring together local authority social work leaders with NHS staff and others.

The meeting came as the Scottish Government continues to press the Treasury to fully fund the cost of the increase – which it has warned could cost the public sector north of the border £700 million a year.

Social care costs could rise by £84 million because of the change, the Government has estimated, and Mr Gray said this will have a “negative impact” on the sector.

He has already raised the issue with UK Health Secretary Wes Streeting, while First Minister John Swinney has written to Chancellor Rachel Reeves.

Mr Gray said ministers at Holyrood are “deeply concerned about the impact the UK Government’s increase in employer national insurance contributions (ENICs) will have in Scotland”.

He said this is why he and local authority leaders at Cosla have “engaged with social care providers to help understand the implications they, and service users, will face as a result of the increases”.

Mr Gray continued: “I’m grateful to social care leaders for meeting with me to outline the negative impact the increase to ENICs is likely to have on the sector and I will take these views forward with the UK Government.

“I have previously written to the Secretary of State for Health and Social Care, Wes Streeting MP, to outline our concerns. Regrettably, he made no mention of the UK Government providing additional funding to mitigate against the increase in his response, but I will be writing again.

“The Treasury must fully fund the actual costs for Scotland’s public sector.

“They must also listen to, and act on, the many concerns expressed by care providers in Scotland. We will continue to engage both with the sector and the UK Government on this issue, as a matter of the highest priority.”

A UK Government spokesperson said: “The Budget delivered more money than ever before for Scottish public services and the Scottish Government receives over 20% more funding per person than equivalent UK Government spending. It is for the Scottish Government to allocate this across its own public sector and meet the priorities of people in Scotland.

“It will also receive additional Barnett funding on top of this record £47.7 billion settlement as part of support provided in relation to changes to employer national insurance.”