A CABINET MEMBER for the Vale of Glamorgan Council has called the rise in employer's national insurance a risk to social care.

In her new budget Rachel Reeves announced employer’s national insurance contributions will increase to 15 per cent from April 2025. 

The threshold for when firms need to start paying national insurance contributions will decrease from 9,100 to 5,000 pounds each year. 

The decision received backlash from GPs and the care homes who warn they will be financially strained by the changes. 

The NHS and public sector are exempt from the tax rise, but it will apply to private care homes or hospices who provide NHS services. 

The treasury chief secretary Darren Jones confirmed that GP practices will have to pay the increased rate in an interview on Times Radio. 

“GP practices are privately owned partnerships. They’re not part of the public sector National Health Service system.  

“And so, yes, they will have to pay national insurance contributions as employers,” he said. 

The Welsh government will have an extra £1 billion to spend in the 2025-26 fiscal year after the new budget was announced. 

In a Public Protection Licensing Committee held on November 12, the cabinet member social care and health commented on the tax rise.

Cllr Eddie Williams, cabinet member for social care and health for the Vale of Glamorgan council said:  

"In the report it talks about several corporate risks and things social Care and Health. 

"I wanted to recognize that in the report it talks about the demand for social care financial viability is a key issue for us. 

"We've known there is an increase, and we've also got an increase in the real living wage and also the change in national insurance for employers. 

"We know that is going to impact on providers of social care, so that is a concern and recognizing that is within the risks." 

The concerns of private care homes which provide NHS services was raised during Prime Minister’s Questions by Plaid Cymru MP Llinos Medi. 

Plaid Cymru MS Heledd Fychan tabled an opposition debate on November 13. 

This calls for the Senedd to press the UK Treasury for the reimbursement of added national insurance contributions costs in the public sector. 

It specifies that these reimbursements should be based on the Stats Wales and Force Survey definitions of the public sector workforce.