Haverhill social care provider tells Prime Minister and MPs the sector ‘needs more support’ or the results could be ‘catastrophic’

A social care provider has told MPs, including Prime Minister Sir Keir Starmer, that without more financial support the sector could see ‘catastrophic consequences’.

Nathalie Gilder, manager and registered director of Haverhill Community Care and the Thrive Hub, which supports people with learning and physical disabilities, has emailed the MPs, as well as members of the House of Lords, to appeal for more support.

Among the MPs she has reached out to are Nick Timothy, who represents Haverhill, Conservative Party leader Kemi Badenoch, Reform UK leader Nigel Farage and the Chancellor Rachel Reeves.

In her email, Mrs Gilder asked what alternative financial help can be provided, given that the social care sector is not exempted from the rise in employer’s National Insurance contributions (NIC).

She said: “Would you consider exempting providers and organisations with an annual turnover of less than £5 to 10 million?

“Larger national providers can absorb these costs, while smaller providers simply cannot.

“It is widely recognised that smaller providers often deliver high-quality care and prioritise the wellbeing of their employees - values we all want to uphold.

“Continuing on this path of harsh financial increases could jeopardise these essential services, leading to catastrophic consequences.”

Mrs Gilder put forward a range of ideas for helping the sector.

She said: “Changes to the exemption rules on VAT, allowing us to apply a zero rate rather than being merely exempt. This adjustment would enable us to claim VAT relief on all items we purchase, helping us to recuperate some funds to mitigate the impacts of the imposed increases.

“Additionally, I would like to inquire about the reasoning behind the exclusion of social care providers from eligibility for business improvement grants.

“Considering the limited and constrained budgets we operate with, any assistance from these grants when launching or expanding services would be extremely helpful.

“I have never been able to comprehend this policy, as surely the addition of more services and the implementation of innovative ideas would significantly benefit the sector.

“It seems unreasonable to exempt a sector that supports some of our country’s most vulnerable individuals.

“Providing us with relief on business rates - similar to what the hospitality sector receives - would also make a significant difference, as would reducing fuel costs for community care services that rely on fuel to operate.”

Nathalie told the Haverhill Echo more about the new financial challenges facing the sector

She said: “Our rate from local authority is dictated. We only got a six per cent uplift this year compared to last year’s 6.7 per cent and we have the added NI contributions and NMW (national minimum wage) increase this year.

“The Government ordered a ‘fair cost of care’ exercise spent a small fortune in doing this exercise and have completely ignored its findings.

“The Homecare Association estimate that the hourly cost of care (paying a carer the real living wage, and this includes all other associated costs such as training, PPE, back office costs etc) is £32.87ph - we are paid £26.28 ph by our local authority.

“It is just absolutely crazy how they think we can survive these additional taxes especially in a highly regulated sector so it isn’t like we can suspend certain training to save money as CQC (Care Quality Commission) state we have to have it to remain compliant.

“It is a very worrying time, as I said in my letter there are many care providers that can afford the increase, it’s the small providers that simply can not, so make it applicable to those who can afford it and exempt the rest that can’t.”

At the end of her email, Mrs Gilder said: “We are not seeking handouts; we are asking for your assistance and support in fulfilling the numerous promises made over the years to address and enhance our vital sector.”