Maree Todd MSP has warned that the Labour Government’s rise in employer National Insurance contributions could have dire consequences for social care services across the Highlands.
The warning comes after the MSP met with staff and service users at Key, a care provider in Thurso.
Key delivers 2,300 hours of support each week to 55 people across the region, with services spanning from supported housing in Thurso and Wick to care provided within individuals’ homes and families.
Maree Todd praised the dedication of Key’s staff and highlighted the crucial role they play in the lives of vulnerable individuals.
She stressed that the team’s compassion and commitment make a tangible difference, enabling people to live fulfilling lives within their communities.
However, she warned that the already challenging landscape of social care could be pushed to breaking point by the Labour Government’s tax hike.
With rising demand and chronic staffing shortages already straining the sector, the increase in employer National Insurance contributions adds yet another burden to care providers.
Maree Todd cautioned that the move could impose an unsustainable financial strain on organisations like Key, threatening their ability to continue providing essential services.
Key employs 55 staff in the region, and the increase in costs could significantly impact its ability to operate.
Across Highland and throughout Scotland, social care providers play a vital role in supporting some of the most vulnerable members of society.
The MSP called on the UK Government to either reverse the decision or fully cover the additional costs to protect crucial services from severe disruption.
She warned that without intervention, the financial hit could have devastating consequences for social care across Scotland.
The Scottish Government has pledged an additional £144 million to assist local authorities in managing the increased costs imposed by the UK Government’s tax hike.
Despite this, the estimated impact of the policy remains enormous, with the additional costs for directly employed public sector staff expected to surpass £530 million.
When factoring in the wider workforce delivering vital services, including GPs, dentists, and social care staff, the financial impact could exceed £700 million.
Maree Todd’s warning underlines the urgent need for action to prevent a crisis in social care funding.
She urged the UK Government to reconsider its approach and ensure that providers are not left struggling under the weight of rising costs.
Without decisive action, the impact on care services in Highland and beyond could be profound.
