THE HIKE in National Insurance contributions could be the difference between keeping the lights on and closing for good for care providers in Stratford.
That was the warning from MP Manuela Perteghella who has taken prime minister Keir Starmer to task over the issue.
Speaking during Prime Minister’s Questions, the Stratford MP highlighted the pressures facing small, nurse-supported care businesses in her constituency. Many, she said, are already grappling with soaring costs and staffing shortages — and now face the added burden of higher employer National Insurance contributions.
Dr Perteghella said: “Mr Speaker, over the past few months I have been meeting with care providers in my constituency of Stratford-on-Avon, who deliver essential and expert care to some of my most vulnerable constituents. But like so many small businesses, they are under huge financial pressures. The hike in National Insurance is yet another burden many can’t afford.
“I welcome the government’s recent u-turn on Winter Fuel Payment cuts – following pressure from these Liberal Democrat benches. So, when will the prime minister offer the same relief to care providers and other small businesses, and u-turn on the punitive hike to National Insurance?”
From April, employers had to start paying higher National Insurance contributions as set out in the government’s Autumn Budget.
The changes are two-fold. Firstly, the rate of employer contributions has increased from 13.8 per cent to 15 per cent. Secondly, the threshold at which businesses begin paying the tax on an employee’s salary has dropped from £9,100 per year to £5,000.
Speaking after PMQs, Dr Pereghella added: “I’ve heard first-hand from care providers across Stratford who are terrified about what the future holds. These are dedicated professionals supporting our elderly and disabled neighbours, people who simply cannot afford to be caught in the crossfire of short-sighted government policy.
“This National Insurance rise might look like a line on a spreadsheet in Westminster, but on the ground, it’s the difference between keeping the lights on or closing for good.
“The Liberal Democrats stood up to protect Winter Fuel Payments. We’re standing up now to protect care. The government must provide a social care exemption to its national insurance rise, and back Liberal Democrat for free personal care and a real living wage for care workers.”
