Tax hike threatens to add to nursing home costs

The Government has been urged to reverse its hike in National Insurance on care providers as new figures reveal the extent to which nursing costs for pensioners have increased over the past decade.

(c) Anthony/Unsplash

(c) Anthony/Unsplash

Analysis of House of Commons Library data by the Liberal Democrats has found that local authorities are spending £53,352 a year in nursing costs per pensioner.

This is up more than £24,000 on 2015/16's level of £29,276 a year and represents an 82% jump in total.

In 2015/16 nursing care costs paid by councils per pensioner were £563 a week. As of 2023/24 that number stood at £1,026 a week.

Referring to the increase in NICs, Lib Dem Treasury spokesperson, Daisy Cooper MP, said it was disappointing that the Government has decided to ‘ram through this self-defeating jobs tax'.

‘Councils providing care are already warning that their budgets are in turmoil and this tax rise will only make it more expensive, stretching their finances even further,' she said.

‘Instead of heeding these warnings, the Chancellor has pushed ahead with this foolish tax hike and Ministers risk repeating the Conservatives' mistakes of kicking the can down the road on desperately needed social care reform.'

A Department of Health and Social Care spokesperson said: ‘We are making available up to £3.7bn extra for local authorities next year. We are also investing in an extra 15,000 home adaptations to support disabled people to stay in their homes and raising the carers allowance.'

BREAKING NEWS: Government abolishes NHS England

BREAKING NEWS: Government abolishes NHS England

By Lee Peart 13 March 2025

Prime Minister Keir Starmer has announced the abolition of NHS England.

Rules prioritise recruiting care workers in England

By Liz Wells 12 March 2025

Care providers will be required to prioritise recruiting international care workers already in England before recruiting from overseas under new rules laid i...

Northumbria healthcare staff back strike action in pay row

By Liz Wells 12 March 2025

Hundreds of healthcare assistants employed by Northumbria Healthcare NHS Foundation Trust have voted to take strike action in a dispute over pay.


Popular articles by Lee Peart