We could see GP practices closing if they are made to pay higher NI contributions, BMA warns Government
GPs have told the Government they “watched with dismay” comments made last night that struggling practices will have to pay more in employers’ National Insurance contributions
Chief Secretary to the Treasury, Darren Jones, appeared on BBC’s Question Time on Thursday night, and told the audience GPs would have to cover this increase.
Previous Governments, however, followed the principle that increases to practice employment expenses, including NIC increases, are fully funded.
Writing to Mr Jones today, Dr Katie Bramall-Stainer, chair of the BMA GP Committee UK, said his comments came as “a huge shock to the profession, many of whom simply will not be able to afford these increases, and will have to reduce their staff and services, or even close their doors entirely.”(1)
It is estimated that that businesses will now have to pay an extra £865.80 in NI each year for each employee earning £30,000 (2). The majority of clinical staff working in general practice fall into this category, meaning the additional costs could run into the tens of thousands for some surgeries.
Mr Jones also claimed that, depending on their size, practices could apply for Employment Allowance.
To this, Dr Bramall-Stainer wrote: “While it is true that the Government has increased the Employment Allowance for small businesses to offset some of the impact of a NICs increase, contrary to your statement, this does not apply to those providing public services, with GPs specifically excluded on this basis.
“This means that even the smallest practice will not be eligible to access this support and will have to cover the total cost of increases out of their own pocket.”
She called on the Government to provide “absolute certainty” that GPs will be exempt from this increase and reimbursed in full.
Without this, she said “practices will be forced to reduce services, implement cost cutting, shed staff, and in some cases close their doors completely.”
GP practices are already struggling to afford to recruit the staff they need to meet patient demand, and so being forced to cut back on the staff they have, or services they provide will be disastrous for patients.
ENDS.
Notes to editors
- Please find the letter in full, attached.
- Autumn Budget 2024: National Insurance for employers increased to 15% | Portfolio Adviser
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