How care homes can tackle NI cost increases

For many care providers, the increase in the employers' rate of National Insurance Contributions to 15 per cent from April is an unwelcome extra cost.

And with pleas to exempt social care, like the NHS, from the rise rejected by the Government, innovation has become a necessity means to meet the extra costs.

Not-for-profit care provider Harrogate Neighbours Housing Association has reacted to the rise by incorporating the increase into its operational budget for 2025.

The charity has also pursued funding grants to make up for the extra costs, and it has had some success with multiple, smaller grants covering among other things, backoffice operations.

Elsewhere, care home operator HMT UK (Healthcare Management Trust) has gone down the digital route to find savings following the National Insurance rise. Turning to technology, HMT has looked to sensors and acoustic monitoring in order reduce an overreliance on staffing costs where it is safe to do so. HMT is also looking at the role of AI in some finance options.

Each issue of Care Home Management magazine contains a host of useful advice and information on cost-effective management and leadership. Printed copies of the March/April issue will be available from our Care Show London stand F86. Other issues, including the AI special focus May/June 2025 issue are available online at www.chmonline.co.uk