As the House of Commons rejects the amendment which would have exempted social care providers from the employer’s national insurance rise, we gather some reactions from the sector.

Professor Martin Green, chief executive of Care England, said: “Today, we bear witness to a devastating blow that seals the fate of thousands of care providers across our nation. In a callous act of indifference, the government has dismantled the core principles and ethos of the Care Act, abandoning millions who depend on vital support. This is indeed a dark day for community-based care, not only a ruthless assault on those we protect and employ, but on the very fabric of our democracy.”

The vote was heavily whipped in favour of the Government’s position, meaning a full-scale Labour rebellion was highly unlikely. James Murray, the exchequer secretary to the Treasury defended the decision saying “As a result of the measures in this bill and wider budget measures, the NHS will receive an extra £22.6bn over two years, helping to deliver an additional 40,000 elective appointments every week.

“The revenue raised by the decisions set out in the Bill will help fund public services, including those provided by the NHS and other social care providers. The amendments would put much of that funding at risk, so to support these amendments is to support higher borrowing, lower spending or other tax rises.”

However many opposition MPs, and some in the sector, disagreed.

By way of example, Jim Shannon, DUP MP for Strangford, said: “The Minister mentions £22 billion extra for the NHS, but if GP surgeries and health clinics are reducing staff and reducing their capacity to deliver services, is that not a step down in what is delivered in my constituency and beyond?”

Clare Connell, CEO of Connell Consulting, said: “The Government’s determination to not exempt social care from the National Insurance increase is disappointing, but not surprising. The fiscally inept decision to increase the cost of employing people will result in increased unemployment and inflation for the country and will be devastating for the care sector that is reliant upon public sector funding.

“The justification was ludicrous. If social care is not properly funded, it increase the pressure on the NHS with delayed discharges and emergency hospital admissions. Like many in the care sector, I joined the Providers Unite protest outside the Houses of Parliament last month. I am concerned that some services will be forced to close and contracts handed back to local authorities. Small businesses, charities and hospices will be worst affected.”

Dr Jane Townson, CEO of the Homecare Association, said: “The government’s refusal to exempt care providers from the ENICs increases, while simultaneously failing to provide adequate funding to local authorities, threatens the existence of regulated homecare services across Britain. The government is forcing homecare providers to choose between breaching regulations or insolvency.

“Our sector already faces a £1.8 billion funding deficit in homecare alone. With only 1% of councils currently able to pay sustainable rates, many providers will now find it impossible to maintain quality services while meeting their statutory obligations.

“The government speaks of ‘home first’ policies and improving care workers’ conditions, but their actions today reveal a fundamental disconnect between rhetoric and reality. Without immediate intervention through the Local Government Finance settlement, we risk widespread service disruption, with devastating consequences for older and disabled people who rely on these essential services.”

Jamie Stuart, deputy head of health and social care at Virgin Money, said: “Social care has long been underfunded and providers often operate on tight margins. The higher NI costs mean additional financial pressure on care homes and home care providers. This will potentially lead to cuts in services, increased costs for users, and constrain pay increases which in turn may worsen staff shortages in a sector already struggling to retain and recruit workers.

“The Government has frequently promised to fix the social care crisis, but this decision raises questions about its commitment. While NI increases were partly justified as a means of funding health and social care, ensuring that social care providers directly benefitted from exemptions would have been a tangible way to support the sector. If care providers pass these costs onto service users or local authorities (which fund a large portion of care), the burden may ultimately fall on individuals and councils already struggling with tight budgets.

“Ultimately, this decision reflects broader tensions in government policy – balancing fiscal responsibility with the urgent need to support a struggling care system. It also reinforces the perception that social care remains an afterthought compared to NHS funding. The government continues to be deaf to the fact that there cannot be a strong NHS without a strong social care sector. Taking out the deficit on the most vulnerable people in our society is at best tone deaf and, at worst, callous.”