HICA Group says social care is in the 'dark ages' following Budget

The CEO of a Not for Profit organisation that provides social care in Hull and East Yorkshire has warned that the government's Budget will "intensify the financial strain on our sector".

Terry Peel, CEO of HICA Group, said social care is in the "dark ages" and, without financial support from the government, increases in National Insurance contributions and National Living Wage "hugely impacts our budget forecasting, endangering our ability to maintain the high standards of care that our communities rely on".

HICA Group runs the Hull care homes Overton House, The Hollies, Raleigh Court, Tamarix Lodge, Elm Tree Court, Wilton Lodge, Albermarle in Hedon, and Red House in Bridlington. It also provides home care services.

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Mr Peel said: "Once again, Social Care remains in the ‘dark ages’ after years of underinvestment and unfulfilled promises of reform. A tremendous opportunity was missed to bring the Social Care agenda to the forefront, increasing public awareness of the urgent crisis our sector is experiencing.

"Whilst the increased funding for the NHS is welcome and necessary, it alone won’t fix what’s broken. Without meaningful partnership with Social Care professionals, the NHS will continue to struggle.

"This budget represents another missed chance to establish a real, integrated solution. HICA Group, a not-for-profit organisation providing essential care for vulnerable people, now faces a significant challenge due to the government’s latest budget changes, set to take effect in April 2025.

"The planned increase in National Insurance contributions and the 6.7% increase in National Living Wage to £12.21 from April 2025 hugely impacts our budget forecasting, endangering our ability to maintain the high standards of care that our communities rely on.

"We fully support improving conditions for all social care staff - and achieving parity with our NHS counterparts - but this ambition must be met with immediate and meaningful financial support from central and local government. Without it, these new measures will only intensify the financial strain on our sector.

"HICA Group remains fully committed to supporting the most vulnerable. However, this latest Budget and the changes it will bring make that task even more daunting."

Ms Reeves said: “I had to make big choices. I don’t want to repeat a Budget like this ever again, but it was necessary to get our public finances and our public services on a stable trajectory.”

“This is a moment of fundamental choice for Britain. I have made my choices. The responsible choices. To restore stability to our country. To protect working people.

“More teachers in our schools. More appointments in our NHS. More homes being built. Fixing the foundations of our economy. Investing in our future. Delivering change. Rebuilding Britain.”