Nottinghamshire County Council leaders condemn government’s decision to reject social care tax relief amendment in letter to Nottinghamshire Labour MPs

Our ‘already fragile’ social care services face an ‘enormous strain’ due to rising costs, according to concerned council leaders.

Last week, MPs voted to overturn an amendment which would have exempted adult social care providers from rising National Insurance contributions.

The amendment, originally put forward in the House of Lords, was rejected on Wednesday, March 19, leaving social care providers facing significant financial pressure.

In response, Nottinghamshire County Council leader Sam Smith and the cabinet member for adult social care, Jonathan Wheeler, have expressed their disappointment at the decision, writing to all Labour MPs in Nottinghamshire —including Sherwood Forest’s Michelle Welsh — urging immediate action to address funding shortfalls.

In the letter to MPs, the councillors call upon government to prioritise social care funding in the upcoming spending review, stating that the “situation is unsustainable”.

The letter concludes: “We need a fair and properly funded social care system, not short-term fixes that push the burden onto local providers and taxpayers.

“If the government is serious about supporting the most vulnerable in society, it must act now.”

Nationally, the Nuffield Trust estimates that social care faces an additional £2.8bn in costs due to inflation, pay increases, and National Insurance hikes.

However, councils have only been provided with the means to meet 40% of this cost through the council tax social care precept and social care grant, leaving a significant shortfall.

In Nottinghamshire, the Care Association calculates that at least £40m is needed to meet these rising costs, and smaller providers — particularly those employing part-time staff — are expected to be hit hardest by the changes.

Mr Smith said: “This decision will place enormous strain on the already fragile social care sector.

“Many smaller providers, which form the backbone of care in Nottinghamshire, will struggle to absorb these rising costs.

“At a time when we should be strengthening and stabilising care services, this policy will instead push providers towards financial breaking point, threatening the essential support our most vulnerable residents rely on.”

Nottinghamshire County Council says it is also facing increased financial strain due to cuts in Integrated Care Board spending, higher NHS demand, and a growing need for support for hospital discharges and mental health services.

Mr Wheeler added: “Nottinghamshire County Council has already committed £29m to help social care providers cope with inflationary pressures, but this barely covers the rising costs imposed by Government policy.

“We are unable to invest in innovation or preventative care because we are constantly firefighting to keep services running.

“Meanwhile, health funding continues to be directed solely to the NHS, failing to recognise that social care plays a critical role in keeping people out of hospitals and living independently for longer.”

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