Employee National Insurance: What it Means for Social Care Providers - and Why the Sector is Fighting Back
- 3treescs
- Apr 7
- 4 min read
At 3 Trees, our focus is and always has been on delivering high-quality, person-centred care to adults with learning disabilities across Bristol and South Gloucestershire. As a company deeply committed to our local communities and to the well-being of our workforce, we are acutely aware of the financial pressures facing the social care sector.
Recent developments in national policy concerning Employer National Insurance Contributions (ENIC) have sent shockwaves through care providers across the country. Despite widespread opposition and proposed amendments from the House of Lords, the Government has confirmed it will increase ENIC from 13.8% to 15%, while also lowering the salary threshold from £9,100 to £5,000 per annum. These changes, due to take effect from April 2025, are likely to have significant consequences for providers and the people they support.
Government Confirms Employee National Insurance Contributions Increase
Despite strong opposition from the House of Lords, the Government has pushed ahead with its plan to:
Increase Employee National Insurance Contributions from 13.8% to 15%
Reduce the salary threshold for employer contributions from £9,100 to £5,000 per annum
These changes will take effect from April 2025 and are projected to add approximately £940 million in additional costs to the social care sector in 2025/26, according to the Nuffield Trust.
The timing of this increase - alongside a 6.7% rise in the National Living Wage - will significantly impact providers who are already stretched thin. Many, including smaller organisations like 3 Trees, operate on extremely tight margins. We pride ourselves on prioritising both the wellbeing of our staff and the individuals we support, but measures like this place added strain on our ability to do so sustainably.
Care England Launches Legal Response
In response, Care England has launched a Judicial Review to challenge the legality of the ENIC increase. Working with Aston Brooke Solicitors, they aim to hold the Government to account for what they describe as a short-sighted and damaging policy.
"It is clear that the Government is not listening to the sector and has not acknowledged the body of evidence that shows the enormous impact these charges will have on care providers... This policy will also make a mockery of the commitment not to increase taxes for working people because many of those hard-working and committed care staff will be without a job because of this policy."
- Professor Martin Green OBE, Chief Executive of Care England(Source: Care England on LinkedIn)
At 3 Trees, we strongly echo this sentiment. The decision to ignore the House of Lords amendment and proceed with these increases reflects a disconnect between central government and the realities of delivering regulated care on the ground.
The Broader Impact on Care
This is not just a financial issue; it is a matter of quality, safety, and human dignity. A sector that is already facing recruitment challenges and funding constraints cannot absorb these added costs without significant consequences.
We know that the people we support, many of whom face complex needs, deserve consistent and skilled care. But that level of care is only possible when providers are given the tools and funding to recruit, train, and retain an exceptional workforce.
Stand with Us - Sign the Petition
In addition to the legal action led by Care England, a petition has been launched to urge Parliament to exempt social care from the ENIC increase. The petition is gaining momentum, and we are calling on our community, colleagues, and partners to add their voices.
🖊️ Please sign and share the petition here:
Your support could make a vital difference in influencing Government policy and protecting the future of social care.
Our Commitment
At 3 Trees, we remain committed to our mission to have a positive and meaningful impact on both employees and the individuals we support. While this challenge is significant, we are actively working with our commissioning bodies, staff teams, and sector partners to navigate the months ahead with transparency, resilience, and compassion.
Learn more about our services and ethos:
Final Thoughts
The ENIC rise represents a major financial hurdle, but it has also sparked an important conversation about the value of social care in our society. This is an opportunity to stand up for the sector, for care workers, and most importantly, for the people we support.
We urge all care providers, professionals, families, and allies to get involved, raise awareness, and support the petition. It’s time to say enough is enough!
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