Gwynedd care homes on brink as they face 'perfect storm worse than Covid'

Two nursing homes in Gwynedd have been left on the brink as they battle rising staff costs and National Insurance (NI) contributions. Owner Cariad Care Homes said the threat it’s now facing is “worse than Covid”.

The Porthmadog-based company employs a team of 130 provide care for up to 77 vulnerable people with a 98% occupancy rate. It now faces paying an extra £95,795 in NI contributions on top of a increased Real Living Wage bill of £124,703 from April 2025. Its plight was raised in Prime Minister's Questions today by Plaid Cymru MP Liz Saville Roberts.

Managing director Ceri Roberts said this amounts to a total yearly increase of £220,498, equating to £56 per resident, per week. She added: “This additional amount does not take into consideration any increases in indirect costs, such as utilities, food, insurance etc.

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“This will have a huge impact on our already stretched finances. I don’t see Cariad Care Homes being able to absorb these additional exorbitant costs. I would imagine this will also have an even greater impact on smaller care homes, with the potential of more home closures.”

Rising NI contributions are also worrying the public sector in Wales with universities facing a "challenging financial period" and GP practices facing “collapse”. Third sector organisations are also feeling the squeeze as they grapple with the cost-of-living crisis.

According to initial estimates, Welsh universities will face an additional NI bill of £20m and several have offered voluntary redundancy to cut costs. The Institute of General Practice Management estimates an added cost of £20,000 for the average GP practice. Marie Curie Cymru fears a £250,000 hike in its NI bill. Sign up now for the latest news on the North Wales Live Whatsapp community

Plaid Cymru argues the NI increases, announced in September’s Budget, will see the most vulnerable people suffer if care homes are forced to close. Dwyfor Meirionnydd MP Liz Saville Roberts said: “Care providers such as Cariad Care provide a crucial service to the local community.

“Its nursing homes have an excellent reputation for nursing and palliative end of life care. But Labour’s new National Insurance hike put core services like these at risk. Many will now face impossible choices. They (Cariad) believe this poses a threat worse than Covid to their business.”

Plaid’s Westminster leader added: “The increase in employer NI contributions will have far-reaching repercussions across both health and social care settings. It ill create a perfect storm in which providers have no choice but to cut back on services as they cannot afford to keep them running.”

Cariad Care Homes is an established care provider with a second nursing home in Pentrefelin, Criccieth Some 96% of its residents funded by Cyngor Gwynedd or the North Wales health board. Ceri Roberts said the company had a recent legal tussle with the health board due to its “insufficient low fees”. Get all the latest Gwynedd news by signing up to our newsletter - sent every Tuesday

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