Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 7
7
Acknowledged
We do not accept the Government’s position that care providers should not be compensated for...
Conclusion
We do not accept the Government’s position that care providers should not be compensated for employer National Insurance Contributions in relation to the Health and Social Care Levy simply because they are, on the whole, private businesses. We heard again and again that there should be parity of esteem between the NHS and social care. Compensating the “health” component of the “Health and Social Care Levy” because it is a public sector employer while not doing so for the “social care” component only serves to reinforce the strongly felt notion that social care is the poor relation of the NHS. It also introduces unfairness between public and private care providers. The additional cost to private providers will make it harder for them to increase wages. This may lead to more care workers leaving the sector, many for jobs in the NHS. Furthermore, it is a perverse logic that care providers should have to undergo further financial strain by paying a tax that is supposed to be helping to relieve their financial strain. Since the Health and Social Care Levy is supposed to benefit both health and social care, private care providers should be compensated for employer National Insurance Contributions to the Health and Social Care Levy. (Paragraph 41) Changing reforms
Government Response Summary
In light of the new timeline to implement charging reform, the government will be reviewing the delivery plan and considering how to ensure that insights from Trailblazers can be effectively fed back into the development of delivery to refine or adapt our approach to implementation.
Government Response
Acknowledged
HM Government
Acknowledged
In light of the new timeline to implement charging reform, we will be reviewing the delivery plan. The six charging reform Trailblazers have already provided valuable learning and insights to shape our approach to implementation. We are currently working in collaboration with Trailblazers and local government partners to conduct a lessons learned exercise, and these insights will be shared with all 152 local authorities in England once completed. We are considering how to ensure that insights from Trailblazers can be effectively fed back into the development of delivery to refine or adapt our approach to implementation. Conclusion 12 – improving transparency Conclusion 12 - Given the Government’s investment in the fair cost of care, and our calls for further funding and for care providers to be compensated for their employer National Insurance Contributions of the Health and Social Care Levy, it is all the more important that the additional funding reaches the frontline. However limited tax avoidance and financial transparency in certain parts of the market are, they must be tackled.