More than 125 adult care providers and sector bodies have united to call for an urgent review of recent Budget measures to stave off the “systematic collapse of community care services.”

Providers Unite is launching a grassroots campaign to appeal to Chancellor Rachel Reeves for an immediate review of National Insurance (NI) and National Living Wage increases to prevent the collapse of essential services.

As of April 2025, employer National Insurance contributions will increase from 13.8% to 15%, with the per-employee threshold at which employers start to pay National Insurance reduced from £9,100 to £5,000 a year. The National Living Wage will increase by 6.7% for employees aged 21 and over, and the National Minimum Wage will rise by 16.3% for 18-20 years olds, and 18% for under-18s and apprentices.

In their open letter to the Chancellor, the providers say that although the increase in the National Living Wage is beneficial for staff, the rise in National Insurance contributions and the lowered thresholds are set to drive an unsustainable minimum 9.4% increase in employer costs. For those committed to paying the Real Living Wage and expanding employment opportunities to our future workforce under 21, this impact is projected to soar above 12%.

The signatories urgently call for the establishment of exemptions similar to those granted to the NHS or urgent adjustments to the Local Government Finance settlement to bridge this funding gap. They say “the alternative is nothing short of a systematic collapse of community care services across Britain.”

Signatories to the open letter include Nadra Ahmed and Ian Turner, executive co-chairs of the National Care Association, Martin Green, chief executive of Care England, Jane Townson, chief executive of the Homecare Association and Sam Monaghan, chief executive of Methodist Homes (MHA).