GPs, care homes and hospices have expressed concern about the impact of the increase in employer national insurance contributions announced in the Budget.
The NHS and the rest of the public sector are exempt from the tax increase, but private care homes and hospices that provide NHS services are not.
There is also confusion about the impact on general practitioners, many of whom are run as small businesses.
The Department of Health and Social Care said further details regarding GPs would be confirmed in due course, but the Chancellor of the Exchequer told the BBC that GPs would have to pay the increased tax.
Dr David Wrigley, general practitioner and vice president of the British Medical Association, said the impact of the tax increase would be “huge”.
He told X that many people were “already under tight financial ropes” and called for “the prompt announcement of full refunds”.
Paul Stanley, manager of a small GP practice in Northumberland, said a practice of his size would be billed more than £40,000 a year after the tax increase.
He told BBC Radio 4’s Today program that an “unfunded increase” in staff costs “could ultimately have an impact on resources and staffing levels”.
Shropshire GP Dr Jess Harvey echoed Mr Stanley’s concerns.
“Unless we’re properly remunerated to cover this National Insurance inflation, we’re going to really struggle,” she says.
“If we don’t have enough funding to continue these operations, we can’t provide the services that people want.”
Mike Padgham, chairman of the Independent Care Group, which represents social care providers, said the sector was being “slendered”.
“We currently employ 1.7 million people, more than the NHS, so these additional costs will hit charities and private healthcare providers alike, while being squeezed by cash-strapped local authorities. will be given.”
“So if you’re going to pay more, you’re going to have to charge more.”
Geoff Butcher, owner of a company that runs six care homes, said the tax increase would cost him £200,000 a year, representing 50% of his company’s free cash.
He told the Today program he was concerned that planned renovations would “almost certainly” have to be halted given the increased funding.
“I think we’re going to see more housing closures,” he said.
Hospice England said people providing NHS services should be treated in the same way as NHS bodies.
“Paying a fair salary to our talented and caring hospice staff accounts for the largest proportion of our running costs, which is why the Prime Minister has made it clear that charities and NHS service providers who are not formally part of the NHS are now part of the NHS. It’s a shame they didn’t exempt it from insurance. Stand up.”
On Thursday, Health Secretary Wes Streeting acknowledged there were a number of health care providers whose employers would be affected by the rise in NI values.
Asked whether social care providers would be protected, he told the BBC’s World at One program: It will deliver the shift I have long wanted, which is to focus NHS investment spending away from hospitals and into primary communities. ”
He pointed to an extra £600 million allocated to social care in the Budget.
care group I said this is not enough. And it will “quickly disappear” due to increased labor costs.
Chancellor of the Exchequer Darren Jones told BBC Breakfast that changes to the Employment Allowance threshold, which will allow some businesses to offset their NI bills, will protect small GP practices from a tax rise.
However, AISMA, the body representing medical accountants, stressed that the exemption is not available to general practitioners under current standards.
government guidance Companies that conduct more than half of their business in public organizations or the public sector are not eligible for this allowance.
The Ministry of Health said it will work closely with the Ministry of Finance to ensure adequate compensation for the public sector.
Chancellor of the Exchequer Rachel Reeves has insisted that raising national insurance for employers is “difficult” but necessary to fund public services, including the NHS.
Of the £40bn in tax increases in her Budget, £25bn will come from increased National Insurance.
From next spring, the rate employers pay in contributions will rise from 13.8% to 15% for workers earning more than £175.
A Department of Health spokesperson said: “The Prime Minister has announced a £22.6 billion funding boost to get the NHS back on its feet, with an additional £100 million to fund upgrades to around 200 GP surgeries across England. announced that it would add lbs.
“We have also already announced contract increases for GPs and clinic staff, and we plan to employ an additional 1,000 GPs in the NHS by the end of this year, ensuring clinics provide the highest quality of care to patients. We will ensure that we have the necessary resources to do so.”
