Exclusive:Kirk facing additional £1m social care bill due to National Insurance hike


The Church of Scotland is facing an additional social care bill of almost £1 million as a result of the hike in National Insurance.
The Kirk is one of the country’s largest social care providers, running services in 70 locations and employing around 1,600 staff through CrossReach, its social care arm.
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Hide AdBut it warned the UK Government's decision to increase employer National Insurance contributions "piles on financial pressure". It comes against a backdrop of church closures due to declining membership and income.
The Kirk wants Scottish ministers to cover the cost of the National Insurance hike for not-for-profit social care providers.


Tory MSP Murdo Fraser said: “Labour’s broken promises on tax rises are not just hitting workers and employers, but the most vulnerable too.
“These additional National Insurance costs will hammer the care sector and the Kirk is just the latest body to warn of the damage that will occur.
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Hide Ad“Combined with the SNP’s longstanding failures to support the care sector, the impact rising costs will have will be devastating, with Scottish Care even saying the SNP’s budget ‘will kill people’.
“These huge additional costs for CrossReach show just how badly Labour and SNP budget decisions will limit the ability to provide care for those who need it most.”
The Rt Rev Dr Shaw James Paterson, the moderator of the General Assembly of the Church of Scotland, told The Scotsman the rise in National Insurance will have a "huge impact" financially.
CrossReach has calculated the hike will cost an estimated £900,000 in 2025. Meanwhile, the wider Church is facing an additional £665,000 bill in respect of central office staff and minister costs.
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Hide AdCrossReach operates a range of services including residential care homes, mental health facilities and homelessness support.
In May, the General Assembly heard that Scotland’s social care sector is in danger of collapse unless action is taken to improve pay conditions for staff.
Viv Dickenson, chief executive of CrossReach, said: “The lack of fair work within the social care sector is not just a matter of justice for those working in care, but it is a matter which speaks to the way in which we as a society value those that we support and care for.
“That’s why we are supporting our colleagues the Coalition of Care and Support Providers in Scotland in a call to the Scottish Government to invest in the workforce by offering fair pay and to cover the cost of the National Insurance increase for not-for-profit social care providers.”
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Hide AdA Scottish Government spokesman said: “The UK Government must remove the financial uncertainty for social care providers, including CrossReach, by confirming it will fully fund any increases to employers’ National Insurance contributions in this area.”
A UK Government spokesman said: “The Budget delivered more money than ever before for Scottish public services and the Scottish Government receives over 20 per cent more funding per person than equivalent UK Government spending. It is for the Scottish Government to allocate this across its own public sector and meet the priorities of people in Scotland.
"It will also receive additional Barnett funding on top of this record £47.7 billion settlement as part of support provided in relation to changes to employer National Insurance.”
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