‘Staggering’ impact of National Insurance rise on care homes

Llinos Medi MP tells Starmer one nursing home will see £127,500 increase in costs due to Budget

Plaid Cymru MP for Ynys Môn, Llinos Medi, has called on Prime Minster Keir Starmer to reconsider increases to National Insurance contributions for employers, highlighting the “staggering” impact on care homes.

Glan Rhos care home in Brynsiencyn in Llinos Medi’s constituency tell her that the increase in National Insurance contributions for employers, together with the increase in the minimum wage, represent a 10% increase in their costs. This represents an increase of £127,500 for Glan Rhos.

GPs, care homes and hospices have voiced concerns about the impact of the rise in employer National Insurance contributions announced in the Budget.

The NHS and rest of the public sector are exempt from the tax rise - but that does not cover private care homes or hospices which provide NHS services, or GPs that function as businesses.

Speaking in PMQs, Llinos Medi MP said:

“Glan Rhos nursing home in my constituency, Ynys Môn, tell me that Budget changes mean a 10% increase in their costs. That’s a staggering £127,500 extra in-year costs. Will the Prime Minister reconsider the rise in employers’ National Insurance?”

The Prime Minister responded that they ensured that “no-one would face tax rises in their payslip”, adding that Labour “had to deal with a £22 billion black hole” but that they had “protected the smallest businesses.”

Speaking after the session, Llinos Medi MP said:

“Care homes provide a vital public services, but are treated as private businesses like any other by the Treasury. This is unfair and the increase in National Insurance contributions will have repercussions for countless families. GP surgeries also face similar pressures, so taken together, the Budget poses enormous additional pressures on both health and social care. In Ynys Môn, GPs and care homes were already struggling. Many will now face impossible choices. I urge the Prime Minister to reconsider this policy.”

Glan Rhos owner, Kim Ombler added:

“We are incredibly worried about changes in the Budget on the crucial services we provide. We care for 52 residents and want to be able to continue to recruit staff and continue providing the best quality care. The Budget makes this extremely difficult, and I hope Keir Starmer listens to Llinos Medi and reconsiders these measures.”