Providers Unite has denounced the House of Commons' decision to overturn a Lords amendment exempting health and social care from National Insurance increases as "a callous act of indifference." The protest group, representing thousands from over 4,000 care organizations, rallied at Parliament Square against the measure that will add to the sector's £2.8 billion cost burden in 2025-26. They've vowed to continue their campaign as the financial strain threatens the survival of essential care services.
Rarely has the social care sector in the UK united with such force as it did on February 25, 2025. Thousands gathered at Parliament Square for a rally organized by Providers Unite, a grassroots coalition representing over 4,000 care organizations across the country. The peaceful march from Church House to the Houses of Parliament marked a pivotal moment in the sector's fight against recent Budget measures.
In an unprecedented show of solidarity, the UK's social care sector mobilized against crippling budget measures threatening essential services nationwide.
The protest coincided with a significant vote in the House of Lords, where peers passed an amendment to exempt health and social care providers from the planned increase in employer national insurance contributions. Baroness Barker's amendment passed with 305 votes to 175, requiring the government to review the impact of NI increases within six months.
This victory was short-lived, however. The House of Commons swiftly overturned the Lords' amendment, using its majority to reject the exemption for care providers. Providers Unite condemned the decision as "a callous act of indifference" toward those delivering essential care services.
The care sector faces multiple financial pressures, including a 6.7% rise in the National Living Wage to £12.21 per hour and increases in employer national insurance rates. These changes are expected to cost care providers an additional £2.8 billion in 2025-26, raising serious concerns about the sustainability of care services. The Homecare Association had previously documented a £1 billion shortfall in home care fees last year, highlighting the pre-existing financial strain on the sector.
Care England called the Lords' vote a "huge moment" for the sector before the Commons reversal. The amendment specifically aimed to protect various care providers, including dentists and pharmacists who were not covered by existing exemptions. The government's decision represents a clear breach of its duty of care toward vulnerable individuals who rely on these essential services. Other organizations, including GMB and Unite unions, have joined the campaign for urgent reform. Right at Home described the February 25 protest as a "defining moment for social care."
Providers Unite has vowed to continue its campaign, mobilizing its network of organizations to pressure the government to reverse course on NI contributions. As the implementation date for the new measures approaches, the coalition plans further lobbying efforts and potential protests, working alongside care associations and unions to fight for the sector's survival.
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