A group of care industry leaders and more 60 cross-party MPs are backing a new funding plan suggested by Box Power CIC to save the care sector from incoming National Insurance rises.

Box Power CIC is a not-for-profit energy consultancy.

The alternative funding mechanism proposed would see big banks put 1% of their Bank of England deposits into interest-free accounts, saving the government £1.3 billion a year in interest payments.

Box Power suggests that this amount ringfenced for care, offsetting the cost of the government’s NI rises, saving the sector an expense few providers can afford.

The policy, attracting interest across the industry and Whitehall, boasts is supported by care industry figures such as such as Renaissance Care’s founder Robert Kilgour and Mike Padgham, chair of Saint Cecilia’s Care Group.

Other care providers and leaders offering support include: Tony Stein, Abbey Healthcare, Active Care Group, Aldingbourne Trust, Bloom Care, Borough Care, Cedar Care Homes, Coverage Care Services, Elizabeth Finn homes, Harbour Healthcare, Healthcare Management Solutionsm Independent Care Group, Lukka Homes, Maria Mallaband Care Group, Minster Care Group, Prime Life, Renaissance Care, Roseberry Healthcare, Royal Masonic Benevolent Institution, Salutem Care and Education, St Martins Care, St Philips Care, Vida Healthcare, St Helena’s Hospice, Birmingham Hospice..

Corin Dalby, chief executive of Box Power CIC, said: “In light of the current funding crisis, we’re requesting the Chancellor Rachel Reeves adopt this policy to provide some immediate relief to the care sector. While NHS trusts have been protected from NI rises – their providers in social care and other facilities have been left to fend for themselves.” 

Former Conservative leader Sir Iain Duncan Smith said: “The chancellor’s decision to raise employer’s National Insurance contributions on primary care providers, hospices, and care homes in the last Autumn budget will have a detrimental impact on the already struggling sector. I now urge the government to implement this initiative – which already has cross-party support of 60 MPs and widespread care sector support – proposing the bank interest option in these exceptional times.”