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EXCLUSIVE: Social care chiefs warn vital services could be axed if government hikes National Insurance

Some 18,000 not-for-profit social care providers in England offer a lifeline to elderly and disabled people but bosses fear vital services could collapse if the government goes ahead with plans to increase National Insurance Contributions

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Re-Engage supported 7,000 older people last year(Image: Jon Rowley)

Royal Navy veteran John Pugh became lonely after the death of his wife, Anne.

After a full working life which saw him rise to the rank of Lieutenant Commander, the 94-year-old rarely left his home. But the pensioner's outlook completely transformed when he began attending monthly tea parties organised by Re-Engage a charity tackling loneliness in later life.

He told the Mirror: "Before I came here I thought my life had ended and now it has started again I felt I had come out of a dark tunnel into the light. Losing my wife was a tragedy, but here I can be around people of similar ages and experiences and we have a good old chat."

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John Pugh felt lonely after the death of his wife(Image: Jon Rowley)

Re-Engage is one of 18,000 not-for-profit social care providers in England offering a lifeline to folk like John. But their vital services are at risk of collapse if the government forges ahead with plans to hike National Insurance costs.

Businesses currently pay a rate of 13.8% National Insurance on employees' earnings above 9,100 a year. But that will increase to 15% in April 2025, starting when wages reach just 5,000. On top of this, the national minimum wage for workers over 21 is set to rise to 12.21 an hour.

The changes announced in Labour Chancellor Rachel Reeves' October Budget will cost the independent social care sector some 2.8 billion in the next financial year. While support workers in need of a pay rise will welcome the news, it could be devastating for small organisations like Re-Engage which rely heavily on donations to survive.

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Sadie Ellison [left] fears the planned hikes could see vital services cut(Image: Jon Rowley)

Sadie Ellison, a volunteer coordinator with the charity, said: Our biggest fear is that [the changes] will have a profound effect on our income. We are totally dependent on donations from businesses and if they are feeling the pinch through these increases then we worry that it will have a knock-on effect on how much money they can give to charities like ours.

We provide vital, life-enhancing social connections for older people at a time in their lives when their social circles are diminishing it's not too far from the truth to say that the tea parties are a lifeline. Companionship is a luxury that older people cannot afford and we hope to continue to give them the social life that they deserve.

Most social care services in England get some council funding, but many have seen huge budget cuts so may not be able to help organisations with the upcoming hikes. This is a particular worry for the Fircroft Trust - a not-for-profit supporting people living in the community with learning disabilities, autism and mental health difficulties.

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Kay Harris is CEO of the Fircroft Trust(Image: Humphrey Nemar/staff Photographer.)

The organisation, based in Surbiton, South West London, will have to find an extra 50,000 a year if the changes come into force. CEO Kay Harris told us: "We dont want the increases to have an impact on any of the people we support but they undoubtedly will.

"We are hopeful that the local authority can support us, but they will also be hit by the increases so there is no guarantee, which would leave us in a very tricky situation. If they're unable to help, we would have to have some pretty lengthy discussions with our board of trustees and we might have to make a member of staff redundant because we don't have enough revenue stream coming in to fund it. Another option would be to reduce the number of hours staff are working - were thinking about the best way to protect all of our staff and the people we support but some difficult decisions may have to be made."

Kay said the service which includes a drop-in mental well-being hub and a residential facility has changed hundreds of lives for the better. She continued: "The family of one chap - who has severe depression and is often suicidal - came here a few weeks ago and they broke down and said: 'If he wasn't able to come here we wouldn't be here.' He comes to be supported and to give his family a break - he is already so much better and has had fewer admissions to hospital which is fantastic."

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Damien Ellis is urging the government to U-turn on the planned hikes(Image: Humphrey Nemar/staff Photographer.)

Damien Ellis, who heads up Organisational Development at Fircroft, added: These services are really important we offer a space where people can meet friends, learn new skills and have some normality. It helps people become more stable in terms of their mindset and how they feel - and it potentially negates the need for people to go into higher cost support and care in the future so it's incredibly valuable."

Among those benefiting from the service is Desmond, 54. He told us: My life transformed coming to Fircroft, it's been a dream come true. Its the staff that make it we're all like one family. If it wasn't for the staff I'd still be unwell, I had no friends before but now life is amazing."

Colin, who has a learning disability, uses Fircroft's hub service several days a week. The 67-year-old said: "I used to go to another service but I didn't like it because it was boring but I love coming to Fircroft. On a Thursday I do arts and crafts and then in the afternoon we do a quiz - it's fantastic."

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Desmond said his life "transformed" when he began using the service (Image: Humphrey Nemar/staff Photographer.)

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Colin lives in Fircroft's assisted living facility (Image: Humphrey Nemar/staff Photographer.)

A Department of Health and Social Care spokesperson said it was determined to tackle the significant challenges and build a national care service so everybody can access the high-quality care they deserve."

It comes days after Health Secretary Wes Streeting announced plans to reform the crisis-hit social care sector. Under the proposals, an additional 86million will be set aside to help older and disabled people stay out of hospital this year, easing the pressure on the NHS.

The boost to the Disabled Facilities Grant, which comes on top of 86million announced in the Budget or next year and brings the annual pot to 711million, will allow an additional 7,800 people to stay at home by installing stairlifts, ramps and wet rooms. Social care workers will also be trained to carry out more health checks such as blood pressure tests, redressing wounds, managing diabetes, adjusting catheters and mental health support in a bid to free up hospital beds.

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