Maree Todd says Caithness social care services must be protected from national insurance cost rise
Maree Todd has warned of “catastrophic consequences” if social care providers in the far north are not exempt from a rise in national insurance costs.
The UK government is increasing the employer contribution aspect of national insurance from April 6, as well as lowering the earnings threshold on which employers are liable to pay the ‘class 1’ contributions.
Ms Todd, the SNP MSP for Caithness, Sutherland and Ross, warned that care services in Caithness are under threat due to the hike in costs associated with the change.
She met staff and service users from care provider Key in Thurso.
Ms Todd said: “Key delivers 2300 hours of vital support each week to 55 people across the region. While some individuals live in Key’s supported housing in Thurso and Wick, others receive care in their own homes or with their families.
“It was clear from speaking with service users just how much they value the care and support they receive. The team at Key are fantastic – their compassion and commitment make a real difference in the lives of those they support, helping them to live fulfilling lives in their own communities.”
The Office for Budget Responsibility expects the tax hike to raise between £14.6 billion and £18.3 billion a year, once Labour government plans to compensate public sector employers are taken into account.
Ms Todd said the Scottish Government has pledged an additional £144 million to help local authorities manage the financial burden of the rising national insurance costs.
However, the SNP government estimates that this increase could add over £530 million in costs for directly employed public sector staff. When factoring in the wider workforce delivering essential services – such as GPs, dentists, and social care staff – this figure rises to more than £700 million.
Ms Todd said: “From staffing shortages to rising demand for services – social care in Scotland faces significant challenges right now.
“However, the most immediate threat to social care in our communities is Labour’s hike to employers’ national insurance contributions. This increase imposes a heavy financial strain on care providers and puts the future of vital services at serious risk.
“Key employs 55 staff in the region – this increase will have a direct and considerable impact on the organisation’s financial resources.
“Across Highland and throughout Scotland, organisations like Key provide vital support to some of the most vulnerable people in our communities. Any move that makes it harder for them to continue this essential work is simply unacceptable.
“The UK Labour government must either reverse this decision or fully cover the additional costs – failure to do so will have catastrophic consequences for social care in Scotland.”
