Parklands MD urges action on funding for Scottish care sector

Parklands Care Homes Managing Director Ron Taylor has written to UK Chancellor Rachel Reeves to express his concern over the recent rise in employer national insurance, warning it will place additional strain on a sector grappling with rising costs and workforce challenges.

It follows the Chancellor’s Budget decision to increase employer national insurance contributions by 1.2% to 15% and lower the threshold at which employers start paying national insurance, from £9,100 to £5,000 per employee.

In his letter, Mr. Taylor urged the Chancellor to work closely with the Scottish Government to ensure that care providers in Scotland, including those in the private sector, receive additional funding support to help offset the tax hike.

Mr. Taylor has also written to Scottish Finance Secretary Shona Robison ahead of next month’s Scottish Budget. He stressed the need to ensure that private care providers, who deliver around 80% of care home services in Scotland, are not unfairly disadvantaged. He called for any financial support offered to the public sector to be extended to private operators, given the essential public health role they perform.

Mr. Taylor said: "The recent increase in employer national insurance contributions adds another financial burden to a care sector that has been grappling with years of underfunding and ever spiralling costs. This is the last thing we needed and is likely to cause severe and lasting damage to the social care sector in Scotland and across the UK.

“We have lost almost 200 care beds in the Highlands alone over the past two years; this Budget will likely accelerate further losses, leaving many older adults without essential support and further straining the NHS.

"We are carefully reviewing the potential impact of these changes on Parklands and exploring ways to mitigate the increased costs. While the financial impact is expected to be substantial, we remain committed to maintaining the high standards of care our residents and their families rely on.”

He added: “I would urge the UK and Scottish governments to work together to support the social care sector, including private operators who form its backbone. Targeted financial support is essential to ensure these providers, who deliver a vital public service to our ageing population, are not left behind.”

A survey published by Scottish Care, the umbrella body for care providers in Scotland, found that 97.83% of respondents said these tax changes make their organisation less sustainable. Nearly half (48%) said there was a very real possibility of service closure as a result of the tax increase.

Dr Donald Macaskill, CEO of Scottish Care, said: “These additional pressures on social care providers created by the UK Budget announcement are unworkable in the current climate and a solution, either through exemption or funding, must be found in order for the social care sector to be sustained.”

Parklands Care Homes operates 12 care homes across rural communities in Highland, Moray and Aberdeenshire, employing over 850 people and contributing £27.5 million to the Scottish economy.